Business Owners Angry Despite Adjusted Quarantine Measures
Self-Employed Groups File Consecutive Lawsuits Against Government
Government to Finalize Quarantine Adjustment Plan at Central Disaster and Safety Countermeasures Headquarters Meeting on the 16th
On the 14th, in front of the Democratic Party headquarters in Yeouido, Seoul, representatives from gyms, Pilates studios, study cafes, screen golf, and coin karaoke announced the three major joint demands of self-employed business owners regarding the adjustment of business closure restrictions scheduled to be announced on the 16th. Photo by Jinhyung Kang aymsdream@
[Asia Economy Reporter Song Seung-yoon] Although the government is considering easing social distancing measures, the anger among self-employed individuals and small business owners is growing stronger. The social distancing measures and the ban on gatherings of five or more people due to the novel coronavirus infection (COVID-19) have caused losses to reach an unbearable level. Following voices condemning the government, the conflict is escalating into administrative and civil lawsuits. It appears that the mood is shifting from COVID-blue (depression) caused by business worries to COVID-red (anger).
According to various organizations on the 15th, the Korea Entertainment Food Service Central Association is preparing a lawsuit to claim business losses caused by COVID-19 against the government and others. Previously, despite the long-term business suspension due to the gathering ban order, they filed an administrative lawsuit at the Seoul Administrative Court, arguing that the failure to provide property tax reduction or exemption to entertainment industry workers was unfair. A representative of the Central Association said, "Most of those whose livelihoods were completely halted for 230 days due to the government's gathering ban order still had to pay taxes, but only the entertainment industry was excluded from policy benefits," adding, "We plan to claim damages together with other related organizations, and if reasonable compensation is not provided through the lawsuit, we intend to file a constitutional complaint."
Representatives of the five major industries, including the Central Association, the National City and Provincial Karaoke Practice Room Association, the Colatec Association, the Korea Danran Pub Central Association, and the Korea Coin Karaoke Practice Room Association, held a press conference on the 11th and declared that they would continue business regardless of whether the gathering ban measures are eased after the 17th.
The National Cafe Owners' Federation filed a lawsuit against the government at the Seoul Central District Court the day before, claiming about 1.8 billion KRW in damages. According to the federation, 358 people participated in the first lawsuit, each claiming 5 million KRW. The Pilates Fitness Business Federation also filed a lawsuit against the government claiming 1.015 billion KRW in damages. They had previously filed a lawsuit in December last year at the Seoul Southern District Court claiming 765 million KRW in damages against the government.
The "Merchants Who Want to Do Business with Peace of Mind" group, the National Franchise Owners' Council, and the Korea Small Business and Self-Employed Federation, together with civic groups such as the People's Solidarity for Participatory Democracy, have filed a constitutional complaint with the Constitutional Court against the Seoul Metropolitan Government's gathering restriction order notice. In addition, various industry workers have issued statements opposing the gathering ban measures, and more organizations are expected to file damage claims or constitutional complaints in the future. Among the organizations already engaged in lawsuits, some plan to proceed with second and third lawsuits or additionally file constitutional complaints.
There are also complaints regarding the third disaster relief fund for self-employed individuals and small business owners. The third round of support funds ranges from 1 million to 2 million KRW depending on the industry, but it does not help at all to compensate for accumulated losses and is insufficient even to pay monthly rent. A representative of one organization said, "Many members did not receive the second support fund, and confusion has arisen as some members received it while others did not," adding, "If we keep waiting and enduring as the government says, everyone will end up on the streets."
Meanwhile, the government is scheduled to finalize adjustments to quarantine measures, including social distancing, at the Central Disaster and Safety Countermeasures Headquarters meeting on the morning of the 16th. They are in final coordination to allow business operations for some facilities and industries, such as indoor sports facilities in the metropolitan area where gathering bans have been imposed, while maintaining the social distancing level and the ban on gatherings of five or more people.
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