South Korean micro and small business owners, amid mounting struggles, are placing high hopes on the Lee Jae-myung administration’s pledged support measures, including the expansion of local currency programs.

According to a survey released Monday by Korea Credit Data (KCD), which leads the Korea SOHO Bank Consortium, 53 percent of Cashnote users - micro business owners using its business management solution - said they had “very high” expectations for the Lee administration’s local currency expansion. Another 22 percent reported having “some” expectations, bringing the total share of respondents with positive outlooks to 75 percent. The survey was conducted over seven hours on Sunday, collecting 1,962 responses from 4,462 views.

As sales continue to decline due to the economic downturn, micro and small business owners are closely watching plans to expand local currencies, traditional market-focused gift certificates, and consumption-boosting vouchers. Lee has repeatedly emphasized the role of local currencies in supporting the livelihood economy, and his administration is considering significantly increasing their issuance to stimulate domestic demand.

A restaurant owner in Seoul described the situation as “extremely difficult” and said local currencies were essential, noting they had helped during Covid-19 and would likely drive spending again if distributed.

Major corporate retailers currently excluded from local currency programs are also urging the government to allow broader usage. Under current rules, local currencies cannot be used at large corporate-run outlets such as corporate supermarkets (SSMs), hypermarkets, department stores, and directly operated franchises.

Debt relief is another key policy micro and small business owners are watching closely, with the administration reviewing plans to adjust or forgive debt related to Covid-era policy loans. While similar measures existed under previous governments, expectations are higher this time due to the scale of debt burdens facing small businesses.

Business owners are also anticipating the potential launch of a large-scale fund to write off non-performing loans held by private lenders, the creation of a financial stability fund, and the rollout of special exemption and repayment deferral programs.

In addition to financial relief, small business owners are paying attention to the administration’s promises on tax and welfare reforms. Many self-employed individuals hope these measures will improve their economic security., Lee pledged to raise the credit card income tax deduction rate at small business locations, introduce a youth employment support program for small firms, boost support for energy costs, and expand various allowances to reinforce the social safety net during his campaign.

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