Jung Sye-kyun: Institutionalizing 'COVID Loss Compensation' for Self-Employed and Small Business Owners

COVID-19 Central Disaster and Safety Countermeasures Headquarters Opening Remarks

Prime Minister Chung Sye-kyun is presiding over the Central Disaster and Safety Countermeasure Headquarters (CDSCH) meeting on COVID-19 response held at the Government Seoul Office on the morning of the 21st. 2021.1.21 Photo by Yonhap News

[Asia Economy Reporter Son Sun-hee] Prime Minister Chung Sye-kyun said on the 21st, "Appropriate support is needed for those who could not operate properly due to following the government's quarantine standards, and it is time to consider institutionalizing this." He is expected to initiate the establishment of a legal basis for compensation for losses suffered by self-employed individuals and small business owners due to COVID-19.

On the morning of the same day, presiding over the Central Disaster and Safety Countermeasures Headquarters meeting for COVID-19 at the Seoul Government Complex, he said in his opening remarks, "The government understands well the feelings of self-employed individuals and small business owners who have already reached their limits as COVID-19 has continued for over a year."

Prime Minister Chung specifically mentioned the Ministry of Economy and Finance, the financial authority, stating, "Bills to compensate or support business losses caused by quarantine measures have already been proposed in the National Assembly regardless of party lines," and added, "The Ministry of Economy and Finance and related ministries should work together with the National Assembly to pool wisdom and proceed with legal and institutional improvements."

The government’s frequent business suspensions and restrictions due to quarantine measures amid the COVID-19 crisis have caused severe difficulties for self-employed individuals and small business owners. However, the ruling party’s position is that existing support payment policies are temporary, and since new infectious diseases similar to COVID-19 may occur in the future, a systematic basis for compensation must be established. On the other hand, some raise concerns that it is difficult to accurately estimate the basis for compensation and that the financial burden will intensify.