Compensation for Self-Employed Losses, 4th Disaster Relief Fund to Be Paid Without Retroactive Application

Legislation Practically Difficult... Ruling Party's Further Discussion

[Sejong=Asia Economy reporters Son Seon-hee and Jeon Jin-young] The ruling party has settled on compensating self-employed business losses through the 4th disaster relief fund. This is because it recognizes that legislating a loss compensation system would take a long time and be difficult to apply retroactively. However, whether the disaster relief fund will be given to the entire population or limited to directly affected groups such as the self-employed will be decided after further discussion, as it is linked to fiscal issues. Still, there is a minority opinion within the party that if retroactive application is not made, the purpose of the bill would be undermined, so final adjustments are needed. The Democratic Party will continue discussions by holding a free debate members' meeting on the afternoon of the 28th following the general members' meeting on the 27th.

Kim Tae-nyeon, floor leader of the Democratic Party of Korea, is attending the video policy meeting held at the National Assembly on the 27th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

As of the morning of the 28th, the Democratic Party leadership is gathering consensus toward providing a fixed amount of compensation through the 4th disaster relief fund. The so-called 'two-track' strategy is to first provide the disaster relief fund and then pursue legislation to ensure support based on law. Kim Jong-min, a Supreme Council member, said in an interview with MBC Radio's 'Kim Jong-bae's Focus' on the morning of the same day, "The focus should not be on retroactive legislation, but on ensuring loss compensation through fiscal decisions even without legislation." Hong Ik-pyo, the Policy Committee Chair, also drew a line at the general members' meeting the day before, saying, "There can be no controversy over retroactive application."

However, concerns still remain. Representative Lee Dong-joo raised his voice in a phone interview with Asia Economy on the same day, saying, "The Damage Compensation Act is not about paying money for future losses but about post-facto relief for past occurrences." Another party official also said in a phone call, "What is the point of uniformly providing the 4th disaster relief fund just because discussions take a long time?" He pointed out, "Can we guarantee that the damages occurring now will not continue in the future? Isn't there a lack of consideration regarding the method of securing funds?"

Attention is focused on how the conclusion will be reached at the members' meeting prepared for free debate in the afternoon. A Democratic Party member said in a phone call on the same day, "At yesterday's general members' meeting, opinions coexisted that retroactive application is necessary to meet the current public expectations and that speed is vital for damage support, so support should be provided quickly through the disaster relief fund."

As the party's discussion flows toward 'no retroactive application, disaster relief fund payment,' the government immediately mentioned 'fiscal burden.' A Ministry of Economy and Finance official flatly said regarding calls to prepare a supplementary budget for securing funds for the 4th disaster relief fund, "We are not considering it at all." However, since the ruling party is expected to push for cash support by any means before the 'April by-elections,' the controversy over fiscal burden is expected to continue.

Given that the government has already decided to issue 91.9 trillion won in deficit bonds this year alone, adding disaster relief payments could further increase national debt, so the government's concerns are likely to grow. Prime Minister Chung Sye-kyun met in the afternoon at the Prime Minister's official residence with Kim Yong-beom, 1st Vice Minister of Economy and Finance, and Kang Sung-chun, Vice Minister of SMEs and Startups (acting minister), to discuss the loss compensation system, and the issue of additional disaster relief support may be addressed. A Prime Minister's Office official said, "It is still too early to discuss disaster relief funds," but added, "If participants raise the topic, opinions can be exchanged."