Ruling and Opposition Parties Support "Retroactive Application of COVID-19 Loss Compensation"... Government Opposes

Ruling and Opposition Both 'Support' at National Assembly Industry Committee Subcommittee
Ministry of SMEs Expresses Concerns Over On-Site Confusion and Fairness Issues

[Image source=Yonhap News]

[Asia Economy Reporters Oh Ju-yeon and Lee Hyun-joo] The National Assembly and the government remain at an impasse over the retroactive application of COVID-19 loss compensation. While both ruling and opposition parties have agreed in favor of retroactive application, the government continues to express reluctance.

At the morning meeting on the 12th of the Subcommittee on Small and Medium Enterprises under the Industry, Trade, and Small and Medium Venture Business Committee of the National Assembly, lawmakers from both sides voiced support for the retroactive application of the Loss Compensation Act. Assembly member Jo Jeong-hoon of the Transition Korea party asked attendees whether they opposed the retroactive application of the Loss Compensation Act. When Jo asked, "Do you all support retroactive application?" members from both ruling and opposition parties responded, "Yes." Six ruling party lawmakers attended the subcommittee that day.

Although the ruling party has not officially adopted a party stance on retroactive application of the Loss Compensation Act, some lawmakers are strongly demanding it. Assembly member Min Byung-duk recently appeared on a radio broadcast stating that retroactive application should be implemented even if it requires issuing government bonds. The People Power Party and the Justice Party agree on the necessity of retroactive application and have established it as their party position.

However, the government reiterated its position that retroactive application is difficult. Kang Sung-cheon, Vice Minister of the Ministry of SMEs and Startups, who attended the subcommittee that day, said, "If loss compensation goes back retroactively, it would cause various on-site confusion and fairness issues."

The debate continued into the afternoon. At the resumed meeting starting at 3:30 p.m., Vice Minister Kang argued, "Regarding the support targets, general small business owners affected by social distancing measures are also included, but since they are not directly affected by quarantine measures, they should be excluded."

In response, People Power Party Assembly member Choi Seung-jae said, "Whether the enacted law bases compensation on sales or profits is something the Ministry of SMEs and Startups will decide, so even if it takes time, all lawmakers agreed on retroactive application," adding, "If only the government agrees, there would be no problem. The National Human Rights Commission chair also called it a homicide." Choi continued, "Many people receive disaster relief funds, but there is a difference from those who were not subject to business suspension," and criticized, "At the very least, even if principal compensation is not possible, the goal is to enable people to restart their businesses. But since this keeps going around in circles, we are not making any progress at all."