Meeting with Park Wan-joo, Policy Committee Chair: "Retroactive Compensation for Losses... Start of Supplementary Budget Discussions"

Park Wan-joo, the Policy Committee Chairman of the Democratic Party of Korea, is attending the floor strategy meeting held at the National Assembly on the 11th and delivering an opening remark. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jeon Jinyoung] On the 7th, Park Wanju, the Policy Committee Chair of the Democratic Party of Korea, stated that regarding the legislation of the Loss Compensation Act, retroactive application will be implemented as ‘retroactive support’ rather than ‘retroactive compensation.’

At a press conference held at the National Assembly that day, Chair Park said, “The retroactive application will not take the form of loss compensation but rather the form of damage support,” adding, “It is not a fact that retroactive application will not be done. It is correct to say that retroactive compensation will not be provided.”

Regarding industries in management crisis such as the travel industry, which are not subject to administrative orders, he said, “Although they are not eligible, support will be provided under the current Small Business Support Act,” emphasizing, “The industries subject to administrative order closure are very limited. Vulnerable industries should also be supported generously and broadly under the support law.”

If the Loss Compensation Act passes in June, the budget for retroactive support is expected to be included in the supplementary budget. Chair Park stated, “If the Loss Compensation Act is processed within June, the retroactive support part will be included in the supplementary budget.”

Regarding the supplementary budget, he said, “There have been continuous demands within the National Assembly, and Deputy Prime Minister for Economy Hong Namki also said he would prepare the supplementary budget, so the direction has been set,” adding, “From this week, discussions centered on the Policy Committee will begin regarding the scale, payment method, and timing of the supplementary budget.” Chair Park emphasized, “There is a principle that the supplementary budget will not be financed by borrowing,” and added, “There will be no atmosphere suggesting failure due to disagreements between the party and the government in the last remaining year.”

The supplementary budget is also expected to include disaster relief funds for all citizens. Chair Park added, “We will also consider providing disaster relief funds to all citizens. Since the timing coincides, it inevitably has to be discussed together.”