TALKS ON BUSINESS COMPENSATIONS

[Anchor Lead]

A legislative hearing was held yesterday at the National Assembly to discuss compensations for business losses caused by the measures meant to control COVID-19. Together with the businessmen who suffered losses, lawmakers from the both sides of the aisle advocated the need to legislate the damage compensation law and retroactive enforcement of the law. However, the government still disapproves of granting retroactive compensation due to the issue of fairness.

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A legislative hearing on how to provide compensations for the losses incurred during the disease control process was held. Small businesses, tired of waiting, implored the government to provide assistance.

[Soundbite] Yu Mi-hwa (Restaurant Owner) : "I beg you to retroactively apply the law in whatever form possible so that I can get up on my feet again."

[Soundbite] Roh Yong-gyu(Coin Song Practice Establishment Owner) : "I want to ask you, Are we not Korean citizens?"

Lawmakers from both sides of the aisle agreed that subsidies should be provided retroactively to cover past losses.

[Soundbite] Yang Yiwon-young(Rep. Democratic Party) : "Families save money to use it in emergencies. What is the purpose of a nation saving money?"

[Soundbite] Lee Joo-hwan(Rep. People Power Party) : "The Constitution stipulates that the state must provide compensation if it caused damage to the people. It says so in the Constitution, not in some general law or enforcement ordinance."

However, the Ministry of Economy and Finance, on behalf of the government, was not in favor of retroactive payment. Since there has been cash assistance, additional compensation would be regarded as overlapping.

[Soundbite] Choi Sang-dae(Director, Budget Office, Ministry of Economy and Finance) : "We have provided about KRW 45 Tn in assistance, including KRW 14 Tn in financial aid, in three rounds. If the aid is given retroactively, it would cause the issue of repetitive aid."

The estimated loss tabulated by the Ministry of SMEs and Startups also caused controversy. The Ministry claimed that 680,000 businesses suffered 3.3 trillion won in losses over the past six months, while 6 trillion won in aid, including those from local governments, has been provided to businesses so far.

[Soundbite] Kwak A-reum(Study Cafe Owner) : "You said the loss estimate was KRW 3 Tn, while the aid estimate was KRW 6 Tn. That means we got twice the amount in compensation, which would make us rich."

Prior to the hearing, some 110 lawmakers urged the government to agree to the general principles of loss compensation while addressing the details gradually. Having failed to narrow the gap with the government, the National Assembly plans to discuss the issue at the standing committee meeting.