People Power Party "Agreement on Compensation for Small Business Owners and Self-Employed Followed by Nationwide Disaster Relief Payments"

Democratic Party of Korea leader Song Young-gil (left) and People Power Party leader Lee Jun-seok shake hands during a dinner meeting held at a restaurant in Yeouido, Seoul on July 12, 2021. 2021.7.12 [Image source=Yonhap News]

[Asia Economy Reporter Hyunju Lee] The People Power Party announced on the 12th that it has agreed with the Democratic Party of Korea to prioritize using the supplementary budget (추경) to support small business owners and self-employed individuals before expanding the nationwide disaster relief fund.

Hwang Bo-seung-hee, the chief spokesperson for the People Power Party, explained in a press notice after a party leader meeting, "We agreed to primarily use the supplementary budget to broaden the scope of recipients and compensation for small business owners and self-employed individuals who suffered losses due to government quarantine guidelines, and to provide substantial support." He added, "If there are remaining funds afterward, we agreed in principle to include expanding the disaster relief fund coverage from the bottom 80% income bracket to the entire population."

This agreement came after a dinner meeting between Song Young-gil, leader of the Democratic Party of Korea, and Lee Jun-seok, leader of the People Power Party. Although there was some confusion during the communication process, the People Power Party decided to maintain its party stance. The timing of the disaster relief fund payment will be decided based on the quarantine situation.

It has been reported that within the Democratic Party, there is a growing argument that support for affected groups such as small business owners and the self-employed should be strengthened rather than focusing on disaster relief funds aimed at stimulating consumption.