businesses

A nonprofit advocacy group, Social Equity LA, organized with local cannabis business owners to oppose the measure in letters to Mayor Karen Bass.

Luis Rivera, executive director of the nonprofit, said Measure CB risks legitimizing the illegal cannabis industry while linking city finances to the tax revenue the businesses would generate. The measure also would undermine Proposition 64, the state law that requires cannabis businesses to be licensed, he said. And amid the city’s struggles to track and close illegal cannabis businesses, Rivera said it will be difficult to force them to pay up.

“There’s no guarantee or mechanism to assure that illegal operators will pay the taxes or fulfill their obligations,” Rivera said.

Even if they pay taxes, illegal operators could undercut legal businesses by selling unregulated products and avoiding requirements, such as code inspections and safety tests for merchandise, that legal businesses must fulfill to keep their licenses, he said. For an already struggling industry, the answer isn’t taxing more businesses, he said — it’s lowering taxes.

April 17 (Asia Today) — South Korea will provide 462.2 billion won ($308 million) in emergency support for small businesses and exporters affected by the prolonged Middle East war, the government said Thursday.

Han Seong-sook, minister of SMEs and Startups, visited South Gyeongsang Province to inspect local business conditions and pledged swift policy support for small businesses, exporters and young entrepreneurs.

Han first toured a “glocal” commercial district in Tongyeong, where officials highlighted a local revitalization model that has helped boost sales in the area. The ministry said it plans to expand support for local entrepreneurs and foreign tourism infrastructure beginning in 2026.

Han then visited the Korea SMEs and Startups Agency in Jinju and emphasized special extensions of policy loan maturities and expanded emergency financing. The ministry is pushing to disburse more than 90% of the supplementary budget for logistics support by June to help exporters cope with rising shipping costs.

At Gyeongsang National University, Han discussed expanding the government’s “Startup for All” project with aspiring young entrepreneurs before heading to K-Tech, a defense exporter, for the final stop of the trip.

Companies at the meeting cited soaring raw material costs and higher logistics expenses caused by shipping delays as major difficulties. Han said it could take considerable time for logistics to normalize and for Middle East energy facilities to be fully restored.

“This is a critical moment for a closely woven support safety net to prepare for the fallout from the war,” Han said, pledging to relay companies’ concerns through an inter-ministerial emergency economic response system and to mobilize all available policy tools.

The ministry said the emergency support is part of a broader 1.69 trillion won ($1.13 billion) supplementary budget approved this month, with 462.2 billion won ($308 million) earmarked to minimize damage to export-oriented small and medium-sized firms from the Middle East conflict.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260417010005540

April 1 (Asia Today) — South Korean small businesses are facing sharp increases in packaging costs and supply shortages, with some warning they are struggling to operate as disruptions linked to the Middle East conflict ripple into the domestic economy.

At a government meeting held in Seoul on Tuesday, business owners described severe difficulties securing basic materials, including packaging containers and even pay-as-you-throw garbage bags.

“I can’t even find trash bags, let alone packaging materials,” one participant said, describing the situation as a direct impact of global disruptions reaching local businesses.

Officials and industry representatives said prices for key materials have surged in recent days. The cost of plastic egg trays rose from 81 won to 131 won, a 61.7% increase, while plastic capsules for smaller packaging climbed 46.9%. Supplies of plastic wrap and binding materials have also dropped to about half of normal levels, creating what participants described as a “supply shock.”

The impact is spreading across sectors. A business owner operating both a factory and a restaurant said waste disposal has been disrupted due to shortages of garbage bags, raising hygiene concerns. An interior industry official warned that rising raw material costs could lead to monthly losses of about 10 million won (approximately $7,400) once existing contracts expire.

Song Chi-young, head of a small business group, said plastic bag prices have doubled within a week and called for stronger government action against hoarding and broader support measures.

In response, Small and Medium Business Minister Han Sung-sook said the government would strengthen emergency response systems and expand support for small businesses. Plans include prioritizing liquidity assistance in a supplementary budget and launching a nationwide consumption campaign beginning April 11.

Delivery platform companies were also urged to share the burden. Representatives from major food delivery firms said they are reviewing additional support measures, including expanding eco-friendly packaging initiatives and exploring ways to reduce plastic use.

Han said the crisis requires coordinated action across the economy, stressing that businesses and platforms must work together alongside the government to mitigate the impact of rising costs and supply disruptions.

The developments highlight how global geopolitical tensions are increasingly affecting everyday business operations, particularly for smaller firms with limited capacity to absorb sudden cost increases.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260129010013458