[Summary] "Concerns Over Fiscal Deterioration" Hong Nam-gi's Caution on 'Loss Compensation Act'... Ruling Party Says "Is the Ministry of Economy and Finance Above the National Assembly?"

Deputy Prime Minister Hong: "Will Honestly Report Difficulties and Limitations"
Song Young-gil: "What Use Is It If Families Break Down and Only Storehouses Remain"
Min Byung-duk: "Passing Harm to Citizens Is Not the Nation's Duty"
Prime Minister Chung: "Will Ensure Legislation of Loss Compensation This Year"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is attending the 3rd Innovation Growth BIG3 Promotion Meeting held at the Government Seoul Office on the 21st. / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] As the legislation for compensation of business restriction losses due to COVID-19 quarantine measures is being discussed in the political sphere, Deputy Prime Minister and Minister of Economy and Finance Hong Namgi expressed caution, saying there are "limitations" to it. In response, the ruling party raised objections, suggesting that the Ministry of Economy and Finance might be acting as if it is above the National Assembly.

On the 22nd, Hong posted on his Facebook, "Regarding the legislative institutionalization of compensation for business restriction losses, some lawmakers have already proposed draft bills, so the Ministry of Economy and Finance believes it needs to respond in some form," adding, "We are currently conducting an internal review."

He continued, "It is a duty of the financial authorities to clarify who should be paid, how much, what the criteria are, how much funding is required, and whether it is manageable," but also expressed concern that "the fiscal conditions are deteriorating as national debt is rapidly increasing while overcoming the COVID-19 crisis."

Hong stated, "We will deeply consider and review the institutionalization plan for compensation of business restriction losses," but added, "As the financial authorities, we will honestly communicate and coordinate regarding the difficulties and limitations we face."

Min Byung-deok, a member of the Democratic Party of Korea, is holding a press conference on the afternoon of the 22nd at the National Assembly Communication Office to announce the proposal of a special law on compensation for losses and coexistence to overcome the coronavirus infection. / Photo by Yonhap News

However, some members of the Democratic Party criticized Hong's cautious stance. There are concerns that the Ministry of Economy and Finance might appear to oppose the government and ruling party's position.

Democratic Party lawmaker Song Younggil wrote on Facebook the same day, "I fully understand Deputy Prime Minister Hong's sincerity," but pointed out, "It is hard to agree with publicly expressing a stance that could be seen as opposing the government and ruling party."

He added, "I hope you keep in mind the persistent concern that the Ministry of Economy and Finance seems to perceive itself as being above the National Assembly."

He further questioned, "This COVID-19 crisis is not a time to manage finances as usual," and asked, "What use is a treasury left intact after people's lives are devastated and families are broken?"

On the same day, Democratic Party lawmaker Min Byungdeok, who proposed the "Special Act on Compensation and Coexistence for Overcoming Coronavirus Infectious Disease," which includes compensating up to 70% of losses for self-employed individuals due to COVID-19, criticized, "It is not the state's duty to pass the damage onto those who have made special sacrifices to avoid national debt."

At a National Assembly press conference, Min emphasized, "This is not charity but a state obligation," adding, "Only then can the state ask its citizens to make sacrifices when such situations arise in the future."

Prime Minister Chung Sye-kyun is speaking while presiding over the Central Disaster and Safety Countermeasure Headquarters (CDSCH) meeting for COVID-19 response held at the Government Seoul Office Building on the morning of the 22nd. Photo by Yonhap News

Meanwhile, the government has also begun pushing for legislation to compensate self-employed individuals affected by COVID-19 business restriction measures.

Previously, Prime Minister Chung Sye-kyun urged at the Central Disaster and Safety Countermeasure Headquarters meeting held at the Government Seoul Office on the 21st, "Since compensation bills have been proposed regardless of party lines, related ministries should work on improving the system."

In an MBC radio interview on the 20th, Prime Minister Chung also emphasized regarding the legislation for compensation, "It has been discussed multiple times during the weekly Monday presidential briefings, and consensus has been reached."

He added, "We will ensure legislation is enacted this year," and "We intend to do our best to achieve results in the first half of the year."