"Academies Allowed but Study Rooms Not"… Controversy Over Loss Compensation Fund 'Blind Spot'

Small business owners are receiving consultations at the Seoul Central Center of the Small Enterprise and Market Service in Jongno-gu, Seoul, on the 30th of last month, ahead of the payment of the Small Business Loss Compensation Fund.

[Asia Economy Reporter Donghyun Choi] The government’s loss compensation fund for small business owners and self-employed individuals affected by COVID-19 quarantine measures has once again sparked controversy over 'blind spots.' Private tutors operating study rooms are excluded from the list of recipients of the loss compensation fund despite complying with government administrative orders for quarantine measures, and they are even engaging in collective actions.

According to the National Assembly's public petition system on the 20th, a petition titled 'Request to Provide Loss Compensation Fund to Private Tutors Operating Study Rooms' registered on the 16th surpassed 1,300 supporters in just four days. These individuals are education service providers who teach curriculum subjects to elementary, middle, and high school students under the 'Act on the Establishment and Operation of Private Institutes and Private Tutoring.' Despite complying with government quarantine guidelines such as operating hour restrictions and capacity limits, and even closing their businesses upon the education office’s recommendation, they have raised their voices, claiming that the responsible authorities refused to issue the 'Administrative Order Compliance Certificate' required to apply for the loss compensation fund.

The Ministry of SMEs and Startups implemented a 'rapid payment' of the loss compensation fund to 3.48 million businesses on the 30th of last month. During this process, recipients were selected based on sales fluctuations during a specific period, which led to criticism for creating numerous blind spots. In response, the Ministry began a 'verification payment' on the 13th to allow businesses omitted from the rapid payment to prove their cooperation with past government quarantine measures and receive the loss compensation fund. The necessary document for this is the Administrative Order Compliance Certificate, which can be issued by local governments or education offices. However, the responsible authorities’ refusal to issue the certificate for certain sectors such as private tutoring has triggered the current issue.

A private tutor operating a study room, Mr. A, said, "When the COVID-19 spread intensified last year, local governments and education offices sent official documents labeled 'administrative order,' and we complied with guidelines such as operating hour restrictions, providing quarantine supplies, and closing upon confirmed cases." He added, "Nevertheless, while the education office issues certificates to private institutes, it refuses to issue them to us who operate study rooms." Another study room operator, Mr. B, stated, "The education office is passing the responsibility to the Ministry of SMEs and Startups, telling us to inquire there for the certificate," and criticized, "Study room operations are subject to the same laws and supervision by the education office as private institutes, so excluding us from support policies is excessive discrimination."

An administrative order extending the Level 3 social distancing measures sent by the Jeollanam-do Provincial Government in August last year. It includes private tutors as subjects to the quarantine rules.

Notice related to the Level 3 Social Distancing Administrative Order posted by the Gyeongnam Gimhae Office of Education in July last year. It includes private tutors as subjects of the COVID-19 quarantine guidelines.

According to the quarantine guidelines announced last year by local governments and education support offices through official documents and websites, terms such as 'administrative order,' 'administrative order notification,' and 'administrative order issuance' are clearly stated. Private tutors are included as subjects of quarantine compliance on par with private institutes and tutoring centers. The guidelines also warn that violations of quarantine rules may result in legal penalties. In response, a Ministry of Education official explained, "Private institutes, tutoring centers, and reading rooms are multi-use facilities subject to phased quarantine rules, but private tutors who teach at their residences were not subject to these rules," adding, "The content of the official documents recommended distancing rules applicable at the individual level."

Despite the Ministry of Education’s explanation, private tutors continue to protest. Private tutor Mr. C expressed frustration, saying, "I even received a text message strongly recommending closure from the education support office, so I don’t understand what they mean." In fact, a text message titled 'Urgent Alert' sent by the Suncheon Education Support Office to Mr. C on August 25, 2020, states, "Due to the spread of COVID-19, the city hall has issued an administrative order to suspend operations of private institutes (tutoring centers) from today until the situation is lifted. All private institutes, reading rooms, tutoring centers, private tutors, and lifelong education facilities in the jurisdiction must suspend operations during this period in accordance with this document. Operating during this period may result in administrative penalties." This indicates that the education support office ordered private tutors to suspend operations based on the phased quarantine rules applied to private institutes, contradicting the Ministry of Education’s explanation.

In August 2020, Suncheon Office of Education sent an official letter and text messages to a private tutor. They are requesting the private tutor to stop the lessons.

The Ministry of SMEs and Startups maintains that private tutors are not subject to the phased quarantine rules set by quarantine authorities, so it is unavoidable. A ministry official said, "This loss compensation fund is a selective payment based on specific criteria, so some people do not meet the criteria. The verification payment is a measure to address this," adding, "We are carefully examining the situation by categorizing various complaints during this process."