Yoo Seung-min: "The Ministry of Economy and Finance, responsible for national finances, should handle loss guarantees"

Kim Jong-in "Ministry of SMEs and Startups is at the wrong address... Not a capable department to handle loss compensation"

[Asia Economy Reporter Naju-seok] Former People Power Party lawmaker Yoo Seung-min expressed the opinion that the Ministry of Economy and Finance, not the Ministry of SMEs and Startups, should be the main ministry responsible for the loss compensation system for self-employed individuals who suffered damages due to measures to prevent the spread of the novel coronavirus infection (COVID-19). This was a rebuttal to President Moon Jae-in's review of institutionalizing the loss compensation system under the Ministry of SMEs and Startups.

[Image source=Yonhap News]

On the 26th, former lawmaker Yoo stated on Facebook, "Loss compensation is legitimate, and according to the spirit of the Constitution, the government must provide loss compensation," but added, "The main ministry responsible for loss compensation should naturally be the Ministry of Economy and Finance, which handles national finances."

The day before, President Moon had instructed, "I hope the ruling party and government, along with related ministries such as the Ministry of SMEs and Startups, review ways to institutionalize loss compensation within a certain range that the budget can bear for small business owners and self-employed individuals whose businesses are restricted or prohibited due to government quarantine measures."

Former lawmaker Yoo pointed out, "The difficult issue is not legislation, but specifically determining the principles, standards, scope, methods, and calculation of the amount of loss compensation," adding, "It is by no means easy to calculate how much the government's business restrictions or prohibitions have affected sales, costs, and profits, and how much loss (= decrease in profit) has occurred."

He argued, "Since national finances are all taxpayers' money and debt that future generations must repay, it is appropriate for the Ministry of Economy and Finance, the ministry responsible for fiscal responsibility as stipulated by the Constitution, to decide how much loss compensation to provide," and "The Ministry of SMEs and Startups, which is the main ministry for self-employed individuals and small and medium enterprises, should conduct fact-finding, but it is appropriate for the Ministry of Economy and Finance to determine the amount of loss compensation."

Meanwhile, Kim Jong-in, the emergency committee chairman of the People Power Party, also made the same claim. At a meeting hosted by the People Power Party to discuss measures such as loss compensation for small business owners affected by COVID-19, Chairman Kim said, "They are telling the Ministry of SMEs and Startups to create a system for loss compensation related to COVID, but I think that is the wrong address," and added, "The Ministry of SMEs and Startups is not a department capable of doing that."