Ruling and Opposition Parties to Resume Discussions on COVID-19 Loss Compensation Act on the 12th... Tug-of-War Begins

[Asia Economy Reporters Oh Ju-yeon, Lee Hyun-joo] Discussions on the Loss Compensation Act, which compensates small business owners for damages caused by the prolonged COVID-19 pandemic, will resume on the 12th.

The National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee will hold a subcommittee meeting on small and medium enterprises in the morning to discuss 26 pending Loss Compensation Act bills. Currently, related bills have been submitted by Democratic Party members Lee Dong-ju, Kang Hoon-sik, Seo Young-kyo, and So Byung-chul, while members of the People Power Party such as Lee Cheol-gyu, Yoon Young-seok, and Lee Chae-ik have also proposed bills.

Both ruling and opposition parties agree that the Loss Compensation Act should be passed promptly, but opinions within the Democratic Party have been divided regarding retroactive application, unlike the unified stance of the People Power Party and the Justice Party. Some voices advocate for retroactive application even if it requires issuing government bonds, while others argue that in-depth discussions are necessary due to the government's fiscal burden.

During the meeting, there is also expected to be discussions on whether to hold a legislative hearing to define the scope and subjects of loss compensation. On the 10th, the Democratic Party submitted a request for a legislative hearing to institutionalize the loss compensation system. The hearing is expected to include government officials and representatives from small business organizations. The government is reportedly not in favor of retroactive legislation for loss compensation. On the previous day, Yoon Ho-jung, the Democratic Party floor leader, stated at a party strategy meeting, "We will discuss the scope and subjects of loss compensation with the public and relevant ministries."

However, opposition parties criticize the ruling party for lacking sincerity in passing the COVID loss compensation law, suggesting that the legislative hearing is a way to avoid responsibility. People Power Party member Choi Seung-jae, who has been conducting a tent protest in front of the National Assembly main building for 31 days, said, "I don't know what they have been doing until now and why they suddenly want to hold a legislative hearing," adding, "It seems they have no intention of passing the Loss Compensation Act." Justice Party member Ryu Ho-jeong is also protesting on the stairs of the Rotunda Hall inside the National Assembly main building.

Although the bill review has taken its first step, it is expected to be difficult to pass the bill even in the May session of the National Assembly. This is due to contentious issues such as the scope of payment and retroactive application, which may prolong discussions. Lee Cheol-gyu, the opposition party's secretary of the Industry Committee and a member of the People Power Party, said, "The bill should have been discussed earlier, but it has been continuously delayed," adding, "We will carefully review it."