[Asia Economy Reporter Naju-seok] The People Power Party has expressed bipartisan support for the loss compensation system to support small business owners struggling due to the novel coronavirus infection (COVID-19). Considering the need for additional funding and the financial burden, they have requested budget adjustments and other financial supplementation measures to reduce the fiscal impact.
On the 23rd, Kim Ye-ryeong, spokesperson for the People Power Party, stated in a written briefing, "We positively evaluate the Democratic Party's response at this point regarding the loss compensation system that Representative Choi Seung-jae and the People Power Party have proactively emphasized and worked hard on," adding, "The People Power Party will also cooperate on a bipartisan basis whenever the government and ruling party devise wisdom solely for the people without politically exploiting the national crisis."
Spokesperson Kim pointed out, "The issue is 'money' and 'time,'" and said, "Since it is estimated that the COVID-19 loss compensation system requires funds ranging from a minimum of 1 trillion won to a maximum of 24 trillion won per month, there is no appropriate funding to cover this." He continued, "Unlike the emergency disaster relief fund, the bill requires some time for processing, and after the bill passes, a supplementary budget must be approved," but added, "Even at this moment, small business owners are worried about rent and leaking taxes and dues, so we cannot delay any longer. We must devise wisdom."
He cited remarks from a National Assembly Planning and Finance Committee official that "to provide disaster relief funds or implement the loss compensation system, there is no choice but to increase the national debt," and demanded that "the government should present specific and reasonable measures to minimize the increase in national debt, such as partial budget reallocation from the 2021 budget."
Meanwhile, Representative Kim also introduced the fact that the loss compensation system was legislated last September through Representative Choi. According to this, "About four months ago, in September last year, Representative Choi Seung-jae proposed a bill as the main sponsor to expand loss compensation, which was previously limited to medical institutions during infectious disease outbreaks, to include small business owners."
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