Sogongyeon Urges Swift Discussion on COVID-19 Business Loss Compensation Plan

"Welcoming the Business Loss Compensation Plan Under National Assembly Discussion... Expecting Protection of Government Policies"

Small Business Association Logo [Source=Small Business Association]

[Asia Economy Reporter Kim Suhwan] The Korea Federation of Micro Enterprise (KFME) has urged the National Assembly to promptly discuss the compensation plan for business losses caused by the novel coronavirus infection (COVID-19), which is currently being debated in the political arena.

On the 18th, KFME issued a statement saying, "We welcome the various legislative bills on compensation for losses of small business owners that are gaining momentum." It added, "We hope that these proposals will be comprehensively discussed so that small business owners can also receive protection under government policies in disaster situations, including COVID-19."

Earlier, on the 12th, KFME emphasized the need for compensation for small business owners during a meeting with the Democratic Party of Korea, and Hong Ik-pyo, the Democratic Party's Policy Committee Chair, stated, "We will actively consider it," indicating that they will consult with authorities on the compensation plan. Additionally, on the 14th, Choi Seung-jae, the Chair of the Small Business Committee of the People Power Party, proposed the "Small Business Basic Act Amendment," which mandates the state to compulsorily compensate small business owners who suffer losses during disasters.

A KFME official stated, "Article 32, Paragraph 3 of the Constitution stipulates that even when lawful public authority is exercised, if losses occur, compensation must be provided," adding, "It is reasonable to compensate by law for business losses caused by legal restrictions."