[Press Conference] "There Are Winners in COVID-19, Creating a Fund Would Be a Great Thing"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] President Moon Jae-in said at the New Year's press conference on the 18th regarding the 'COVID-19 Profit Sharing System,' "It is very desirable that a voluntary movement arises in which companies that actually make money during the COVID-19 era help those who are suffering damages, and that the government provides strong incentives for that movement."

He cited support for the primary industry during the past Free Trade Agreement (FTA) negotiations as a model case. President Moon stated, "When the Korea-China FTA was signed, sectors such as agriculture, fisheries, and livestock suffered damages, but there were also many companies, such as manufacturers and industrial goods firms, that benefited. At that time, companies and the public sector jointly established a fund to help the damaged rural and fishing villages, called the Rural and Fishing Village Win-Win Cooperation Fund. Of course, it was based on the voluntary participation of companies."

This is interpreted as supporting the direction and principle of voluntariness of the COVID-19 profit-sharing system being promoted by the Democratic Party of Korea. There is a recognition that disaster relief funds alone cannot be a fundamental solution. President Moon said, "The primary measures the government has taken can be said to be the disaster relief funds distributed three times. In addition, to maintain and promote employment, and to alleviate various burdens on small business owners, supplementary budgets were prepared four times last year."

He added, "The government will continue to do its best, but relying solely on the role of finances, in other words, leaving all responsibility to address Korea's dual economy is insufficient," and said, "There are also COVID-19 winners. Some companies have actually performed better and made money during the COVID-19 situation. If such companies create a fund to help small business owners, self-employed individuals, and employment-vulnerable groups suffering due to COVID-19, that would be a very good thing."

He continued, "The government cannot enforce this. It is desirable to encourage it by providing strong incentives from the state to companies that participate voluntarily through private sector movements."