COMPENSATION BILL FOR BUSINESS LOSSES

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The bill on compensation for business losses was approved by the National Assembly Trade, Industry, Energy, SMEs and Startups Committee on Wednesday night. A stipulation on retroactive reinforcement has been removed, and instead a new stipulation on compensation for past losses has been added. This triggered backlash from the People Power Party.

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The National Assembly Trade, Industry, Energy, SMEs and Startups Committee approved the bill on compensation for small businesses that either had to shorten their business hours or close altogether due to the pandemic. The stipulation on retroactive compensation for past losses was not included in the bill. The Democratic Party says if retroactive payment is used, it will take a while to estimate losses. Plus, the situations are different in various sectors. Instead, the bill says past losses will be compensated sufficiently.

[Soundbite] Jung Tae-ho(Democratic Party) : "We looked into ways that can provide the greatest benefit to small businesses."

The People Power Party blasted the ruling camp for changing its stance, and said compensation should be paid out retroactively.

[Soundbite] Kim Jung-jae(People Power Party) : "The political parties had agreed on retroactive application, giving hope to small businesses, but less than a month later you backed off on your promise. It's a shame."

Rival parties continued their debate until midnight, but failed to bridge their differences. The chief of the National Assembly Trade, Industry, Energy, SMEs and Startups Committee eventually attempted to hold a vote, and the bill was approved after the PPP lawmakers left the venue. The Democratic Party plans to process the bill at the June plenary session after discussing it with National Assembly committees. However, it will likely be a bumpy road due to resistance from the main opposition bloc and the Justice Party.