TRANSITION COMMITTEE'S COMPENSATION PLAN

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The presidential transition committee has laid out its plan on compensating small business for pandemic losses. It says business losses sustained by some five million small businesses nationwide is estimated at 54 trillion won, and the amount of compensations will depend on the amount of losses. The Democratic Party and small business advocacy groups blasted the president-elect for walking back his campaign pledges by refusing to provide compensations retroactively.

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The presidential transition committee says pandemic losses sustained by small businesses are estimated to be around 54 trillion won. The figure is based on the earnings of some 5.5 million businesses recorded in 2020 and 2021 compared to 2019. The presidential transition committee says compensations will be paid out according to the size of businesses and the amount of losses. The committee pledged to pay them as soon as the second supplementary budget bill is passed. Sources say it's considering providing up to six million won per business. The head of the presidential transition committee, Ahn Cheol-soo, says the amount was calculated using scientific methods.

[Soundbite] Ahn Cheol-soo(Chair, Presidential Transition Committee) : "I don't understand why the current administration never estimated the accurate.amount of losses. Isn't it what they should have started from?"

The committee promised to raise compensation rate to 100 percent for losses stemming from virus prevention measures, and raise the minimum quarterly amount, which currently stands at 500,000 won. The president-elect also promised financial and taxation support. He vowed to adjust insolvencies and switch high-interest loans from non-banking financial companies to bank loans, as well as raise the tax credit limit and extend taxation deadlines. The transition committee pointed out, paying business compensation retroactively would be difficult.

[Soundbite] Jang Sang-yoon(Presidential Transition Committee) : "We should check data, but not much of it is available now and there is administrative difficulties as well."

The Democratic Party blasted Yoon for walking back his campaign pledge of compensating small businesses entirely and promising up to ten million won in compensation to each business upon being elected. Small business advocacy groups also criticized the president-elect, calling his compensation plan as being even worse than that of the incumbent administration. They denounced him for failing to keep the promise of paying equal compensation of at least six million won to each business and applying the law retroactively.