Democratic Party Proposes 46.9 Trillion Won for 2nd Supplementary Budget... "COVID Loss Compensation Must Be Substantial"

Demand for 41.9 Trillion Won in COVID-19 Loss Compensation
Also Expresses Will to Push for Retroactive Application Bill Passage

Kim Seong-hwan, Chairman of the Policy Committee of the Democratic Party of Korea, is speaking at a press briefing on the supplementary budget bill held at the National Assembly on the 12th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Jun-yi] The People Power Party and the government have announced plans to submit a second supplementary budget bill worth "33 trillion won + α" to the National Assembly, while the Democratic Party of Korea proposed a supplementary budget of 46.9 trillion won. Among this, they requested an allocation of 41.9 trillion won for compensation support for losses suffered by self-employed individuals and small business owners due to COVID-19.

Kim Seong-hwan, Chairman of the Policy Committee, and Maeng Seong-gyu, Democratic Party budget and accounts committee secretary, held a press briefing at the National Assembly on the 12th to announce this. According to the supplementary budget proposed by the Democratic Party, 41.9 trillion won is allocated for compensation support for losses of self-employed individuals and small business owners, 3.4 trillion won to address blind spots in support for vulnerable groups, 0.5 trillion won for additional support of local love gift certificates, 1.4 trillion won for maintaining the COVID-19 quarantine system, and 73 billion won for wildfire prevention and response support.

At the briefing, Chairman Kim explained regarding the compensation support budget for self-employed individuals and small business owners, "The ruling and opposition parties promised to provide 10 million won support to self-employed and small business owners during the presidential election," adding, "Including 1 million won in the first supplementary budget, 3 million won at the beginning of the year, and 6 million won in this supplementary budget, a total of 10 million won will be supported. Of the 41.9 trillion won budget, 19.8 trillion won is allocated for that."

He also argued for the need for retroactive application of loss compensation. He stated, "The ruling and opposition parties agreed during the presidential election to apply loss compensation retroactively, but the Yoon Seok-yeol administration has effectively abandoned that pledge," adding, "People Power Party lawmaker Lee Cheol-gyu has proposed related legislation, and we also plan to co-sponsor it, hoping that the bill will pass and that loss compensation for small business owners will be paid retroactively." The necessary budget for this was estimated at 8 trillion won.

He further said, "Rapid legislation is needed to expand the scope of compensation to medium-sized enterprises," and added, "Along with this, we will work together with the government and the People Power Party to process the 'Korean-style PPP' bill, which partially reduces fixed cost debts, during this supplementary budget process so that it can provide comfort to the many self-employed and small business owners who have suffered greatly due to COVID-19."