Jung Sye-kyun: "Compensation for Losses Not Intended to Be Applied Retroactively"

Prime Minister Chung Sye-kyun (right) is standing up to change his jumper during the Prime Minister-Deputy Prime Minister meeting held on the morning of the 26th at the Government Complex Sejong in Sejong City. On the left is Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who arrived earlier. January 26, 2021.
[Photo by Yonhap News]

[Asia Economy Reporter Son Sun-hee] Prime Minister Chung Sye-kyun stated on the 26th regarding the legislation of compensation for losses caused by the novel coronavirus infection (COVID-19), which has sparked controversy over financial burden, "The purpose of establishing these regulations is to provide compensation based on laws when administrative orders such as gathering bans and business restrictions are issued in the future, not to apply compensation retroactively."

The Office for Government Policy Coordination announced in a press release related to the 'Prime Minister-Deputy Prime Minister Council' held that afternoon that Prime Minister Chung requested Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki to adhere to this principle. Accordingly, retroactive compensation for small business owners and self-employed individuals who suffered sales losses due to business restrictions and bans during last year's COVID-19 crisis is expected to be excluded from consideration.

The Office for Government Policy Coordination cited Article 23, Paragraph 3 of the Constitution, which states that "when property rights are expropriated, used, or restricted for public necessity, just compensation must be provided according to the law," to emphasize the justification for legislating this compensation plan.

Prime Minister Chung also urged swift progress regarding the legislation of loss compensation, saying, "As President Moon Jae-in instructed the day before, I hope Deputy Prime Minister Hong will take the lead in promptly preparing institutional measures such as compensation standards."

Regarding the financial burden issue, which has sparked conflict between the ruling party and the government, he said, "I hope you carefully consider the opinions from the field and review institutionalizing loss compensation within the scope that the national finances can bear, together with related ministries such as the Ministry of SMEs and Startups."