[2021 National Audit] Hong Nam-ki: "Loss Compensation Damage Recognition Rate Is a Matter to Discuss with Private Committee Members"

Deputy Prime Minister for Economy Hong Nam-ki attended the National Assembly's Public Administration and Security Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 5th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 5th, "The damage recognition rate for small business owners' loss compensation is a matter to be discussed with private committee members."

During the Ministry of Economy and Finance's audit by the National Assembly's Planning and Finance Committee on the same day, in response to a question from Woo Won-sik, a member of the Democratic Party of Korea, asking, "Is it true that the government's proposal for the loss compensation damage recognition rate is about 60%?" Deputy Prime Minister Hong responded accordingly. Since it is a matter that requires gathering opinions from private committee members, he avoided giving a direct answer regarding the government's proposal.

Hong Nam-ki explained, "The loss amount for small business owners partly arises purely because of restrictions imposed by the government, but there are other reasons as well," adding, "Also, there are limits that various businesses not eligible for loss compensation can tolerate, so all these factors must be comprehensively considered and discussed."

The damage suffered by small business owners due to business suspension or restriction measures is calculated by multiplying the average daily loss amount by the period during which quarantine measures were applied, and then applying the damage recognition rate.

The government plans to hold the Small Business Loss Compensation Deliberation Committee on the 8th to finalize detailed criteria. Actual loss compensation will begin from the end of this month.