With the minimum wage of 7530 won coming in 2018, the sighs of businessmen who run the franchise are deepening.

The minimum wage committee decided in July to raise the minimum wage in 2018 by 16.4% from 6470 won in 2017 to a minimum wage of 7530 won in 2018. 

A business or an employer who violates the minimum wage from January 1 to December 31, 2018 must impose a penalty of 3 years or less or a fine of 20 million won or less. 

With the minimum wage, interest rate hike, and intensifying competition, it is anticipated that the household budget of small business owners will be further reduced. 

According to the Korea Food Service Industry Research Institute under the Korea Food and Drug Administration, if the minimum wage increase rate is set at 15.7 percent per year based on changes in the personnel expenses and management structure of the food service industry, it is estimated that labor costs next year will increase by 2.1 trillion won. 

"The franchise industry, such as chicken, pizza and hamburgers, employs mostly part-time workers and delivery workers, but if the minimum wage goes up, you have to consider measures such as reducing the number of employees or reducing working hours, "We have to raise the wages of the employees in the situation that the rents of the store and the prices of the commodities are going up, and it becomes hard to eat more and more." 

The minimum wage is increasing every year from 6030 won in 2016 to 6470 won in 2017. 

A talent-sharing platform has emerged where small businesses can easily and affordably receive professional help. 

Online talent-sharing platform Li Bridge (CEO Kim Young-nam) entered full-scale service. 

'Talent sharing platform' is a professional freelancer and an open market which is used by consumers who need to register their talents (services) on the online site, and there are KMON, GUNNET, and OTTUCH in Korea. 

Lee Bridge is an online platform specifically tailored to small business owners and start-up companies, connecting professionals from diverse fields, from business card production to programming and legal consulting. 

Currently, the service is provided in eight fields including business, marketing, design and programming, and providers can register their services at no additional cost. Users can select experts according to their budget and situation. 

About 60 professional groups (corporations or freelancers) are currently registered. Lee Bridge aims to attract more than 200 professional groups within this year. 

"Lee Bridge is a platform for entrepreneurs and small businesses to meet with diverse and professional service providers," said Kim Young-nam. "We want to serve as a bridge to the stability and development of early or small business people."

Meanwhile, Lee Bridge, currently operating as a global member, plans to enter into a strategic partnership with local Korean merchants association in eight cities in five countries including USA, Germany, Australia, Philippines, and Myanmar in order to implement the online global platform. 

Foreign equity-type funds are sweeping the market funds ahead of the scheduled deadline for tax exemption at the end of this year.

According to KG Zeroin, a fund evaluator on May 5, the number of funds invested in overseas equity-type funds by the first day after the beginning of the year was 2.756 trillion won.

This is in contrast to the 6,155.9 billion won out of domestic equity-type funds during the same period.

In particular, it is estimated that 1.336 trillion won, which is about half of net inflows of foreign equity funds this year, came in last month.

The net inflows of foreign equity-type funds rose to 619 billion won in September and 722 billion won in October.

This is finally the result of investors seeking to participate in tax exemption benefits. ◇ Capital flow trend of domestic and overseas equity funds (Unit: KRW 100 million)

Large type September October November 2017

Domestic stock type -5,213 -15,252 7,676 -61,659

Overseas stock type 6,159 7,022 13,066 27,568

※ Below 2017.12.1, KG provided by Zeroin

As a result, the launch of new products and promotional events for overseas equity funds are continuing.

Hana Financial Investment Co., Ltd. has launched 'One UBS Global Fourth Industry First Place Plus Fund' and 'One UBS China First Place Plus Fund', which are covered by tax exemption the day before. On the same day, Hanwha Asset Management also newly launched 'Hanwha ASEAN Legend Fund'.

The fund supermarket announced on the previous day that 20 of the customers who filled 30 million won of tax exemption limit will be given an event to give musical 'Titanic' ticket by 29th.

Samsung Securities also has various events for non-taxable overseas equity fund customers from last month to the end of the year.

By type, Asian emerging market equity funds outperformed foreign equity funds this year with an average return of 35.52% since the beginning of the year.

Followed by China (33.23 percent), Vietnam (29.81 percent), Asia Pacific (29.35 percent) and India (28.25 percent).

"If you change over from next year, you will not be able to receive tax exemption benefits," said KBS Securities Researcher Ohon Soo. "It is time to take an investment watch in the mid to long-term for tax benefit."

He added, "In the mid- to long-term, Asia is a market where asset prices are likely to rise as the weight of the middle class grows." Taking as much of Asia's emerging economies as possible rates will be a driving force for excess performance.".

◇ Top five overseas equity fund type returns (Unit: 100 million won,%)

type Net assets Yield

Overseas stock type 237,875 24.80

- Emerging Asia stocks 4,931 35.52

- Chinese stocks 90,609 33.23

- Vietnam Stock 7,047 29.81

- Asia Pacific shares (excluding Japan) 12,892 29.35

- Indian stock 8,845 28.25