Democratic Party Fair Market Committee: "Advance Support Needed for Small Business Damage... 100 Trillion Won Budget Required"

[Asia Economy Reporter Jeon Jin-young] On the 15th, the Democratic Party of Korea announced that it will shift the post-compensation system for small business owners and self-employed individuals affected by COVID-19 to a system of 'pre-support' and 'post-settlement.' The funds required for this are expected to be between 90 trillion and 100 trillion won.

Chae I-bae, former lawmaker and co-chairman of the Democratic Party's Fair Market Committee, stated at the launch ceremony that "the approximate required funds are expected to be 56 trillion won for loss compensation and support for vulnerable groups in 2020, 24 trillion won for alleviating the debt burden of self-employed individuals, and about 6 trillion won for livelihood support for self-employed individuals who have closed their businesses."

[Image source=Yonhap News]

The committee proposed five policy packages on the same day: ▲ pre-support and post-settlement of loss compensation ▲ measures to ease the debt repayment burden of self-employed individuals ▲ livelihood support for closed self-employed individuals ▲ purchase of non-performing loans to support the rehabilitation of delinquent or at-risk self-employed individuals ▲ support for quarantine equipment essential for visitor management and verification of the quarantine pass ▲ establishment of a social solidarity fund to compensate self-employed individuals for damages ▲ and income security for freelancers, special employment workers, and platform workers.

Former lawmaker Chae said, "We will shift the paradigm to pre-support. Loss compensation can only be discussed after losses have occurred," adding, "We will reduce the burden. While expanding the scope and amount of the current 'post-loss compensation,' we will implement 'pre-support' simultaneously with the government's quarantine measures, and if there is any shortfall, additional loss compensation should be made through post-settlement."

Regarding the method of securing funds, he explained, "Spending restructuring in fiscal policy is necessary. During the expansion of the fiscal scale up to 600 trillion won, there has been almost no spending restructuring," and added, "Looking closely at budget projects, spending restructuring of 10 to 20 trillion won is sufficiently possible."

On the same day, the Democratic Party's presidential campaign committee launched the Fair Market Committee directly under presidential candidate Lee Jae-myung, appointing former Minsheng Party lawmaker Chae I-bae and lawmaker Lee Yong-woo as co-chairmen. As vice-chairmen, they selected Wi Pyung-ryang, former head of the Seoul Small Business Policy Research Center, and Professor Shin Seung-geun of Korea University of Technology and Education.