Lee So-young: "Double Health Insurance on Yellow Umbrella Mutal Aid Unjust; Reviewing Item Restrictions for Online Traditional Market Malls"

Minister of SMEs and Startups Lee So-young stated today (October 7) that she will consult with the Ministry of Health and Welfare regarding the issue of health insurance premiums being doubly imposed on Yellow Umbrella mutual aid payouts, and review measures to restrict sales items in online traditional market malls where Onnuri gift certificates can be used.

Regarding the differential application of the minimum wage by industry, she said it is an area that requires careful consideration, and added that the Ministry of SMEs and Startups will voice its position by reflecting the realities in the field during the family business inheritance tax reform process.

During the parliamentary audit of the Ministry of SMEs and Startups by the National Assembly's Trade, Industry, Energy, SMEs, and Startups Committee, Minister Lee addressed criticisms that health insurance premiums are being doubly charged to some small business owners enrolled in the Yellow Umbrella mutual aid program, stating, "It appears to have the characteristics of double taxation, and we will consult with the Ministry of Health and Welfare."

The Yellow Umbrella is a mutual aid system operated to help representatives of small businesses and small-scale enterprises recover and secure financial stability in their retirement. Subscribers make regular contributions, and mutual aid benefits are paid out upon business closure or old age.

Minister Lee said, "Health insurance premiums were already paid during the principal payment process, and having to pay them again because the payout is classified as new income upon return appears to be a case of double taxation."

She also expressed her intention to improve issues involving multi-million-won imported electronics and travel packages being sold using Onnuri gift certificates on online traditional market malls.

The online traditional market mall is an online shopping platform operated to help merchants in traditional markets and commercial districts secure online sales channels and enhance the convenience of using Onnuri gift certificates.

Some online traditional market malls currently sell items such as imported audio systems priced at 7.95 million won, speakers priced at 3.67 million won, and cruise travel packages worth around 2 million won.

Minister Lee pointed out, "Sellers who import or purchase electronic goods and sell them are able to list them and generate sales via Onnuri gift certificate discounts simply because they maintain a shop inside a traditional market. I don't think this aligns with the original intent."

She added, "Onnuri gift certificates have had no item restrictions for the past 18 years, and they still don't. However, we likely have a way to resolve this exclusively for online traditional market malls."

She further stated, "It is technically and contractually feasible to restrict items that can be listed and sold on online traditional market malls. We will review such methods and report back."

Regarding the burden of labor costs on small business owners, she expressed a cautious stance on the possibility of applying the minimum wage differently by industry.

Minister Lee noted, "I recognize that the minimum wage issue is a conflict between the vulnerable and the vulnerable. I am well aware that minimum wage hikes lead to an environment where vulnerable self-employed individuals end up working alone without employees."

However, regarding the differential application by industry, she stated that it is a matter requiring deep consideration.

In response to criticism that the Minimum Wage Commission should better reflect the voices of small business owners, she said, "While two small business owners are participating as representatives of management, I understand there are voices calling for a greater share for small business owners rather than conglomerates."

Regarding the government's proposed reform of the family business inheritance tax system, she showed varying stances depending on the specific provisions.

Concerning the plan to revise business category change requirements for enterprises eligible for the family business inheritance deduction, Minister Lee said, "I think there is a valid point in the feedback from the field that the current business classification criteria feel unfair. We will adopt some of those points and have the Ministry of SMEs and Startups voice its opinion during the upcoming tax law review process."

On the other hand, regarding the proposal to extend the required management period for companies to be recognized as family businesses, she evaluated that "recognizing a family business after only 10 years was somewhat short in the past, and extending the period has a degree of rationality."

She also stated that the entire delivery payment linkage system will be re-examined.

Regarding the delivery payment linkage system, which took full effect in 2023, Minister Lee remarked, "I still believe its practical effectiveness is insufficient. Because actual penalties are somewhat weak, there are cases where it fails to function in reality."

She added, "We will comprehensively review the delivery payment linkage system, including institutional supplements to trigger conditions, penalties, and automatic contract application mechanisms."

A reorganization of public delivery app support methods is also under review.

Regarding discount coupon subsidies, which account for a significant portion of next year's win-win delivery app budget, Minister Lee said, "We are gathering ideas on how to restructure the coupon budget," and mentioned that various options, including delivery worker incentives, are being considered.

In her opening remarks earlier that day, Minister Lee stated that the ministry will strengthen the social safety net for small business owners by expanding support for self-employed employment insurance premiums and introducing new industrial accident insurance and health care support.

She also announced plans to establish a Startup and Venture Regulation Innovation Committee to identify regulatory improvement tasks, extend the lifespan of the Mother Fund, and support small businesses in artificial intelligence transition and carbon neutrality response.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.