Small Business Owners Who Gave Up Livelihoods Gather in Front of Presidential Office "Loss Compensation Blind Spots Must Be Improved"

Small business owners demanding improvements to the loss compensation payment method are holding a rally on the 22nd in front of the Presidential Office in Yongsan-gu, Seoul.

[Asia Economy Reporter Donghyun Choi] "The weather is very hot today, but is it as hot as the burning hearts of the small business owners gathered here?" (Mr. Seomyeongho, who runs an interior design company)

On the afternoon of the 22nd, when the highest temperature soared to 35 degrees Celsius, small business owners from all over the country gathered in front of the Presidential Office in Yongsan-gu, Seoul, holding placards soaked in sweat. These are small business owners who have fallen into a blind spot because they did not receive the loss compensation payments provided to those affected by COVID-19 quarantine measures. They came to the site to raise their voices, even if it meant giving up a day of business, claiming that President Yoon Seok-yeol did not keep his promise of full loss compensation made during his candidacy.

Kim Myung-hee, a private tutor running a study room in Gyeongju-si, Gyeongbuk, spoke in a trembling voice holding a pile of documents collecting cases similar to her own damage. She said, "I have faithfully paid taxes according to the Academy Act and strictly followed quarantine rules such as personnel restrictions and temporary closures. However, while academies are issued administrative order compliance certificates, private tutors like me are not issued such certificates, so we are not receiving loss compensation payments," she appealed.

The Ministry of SMEs and Startups announced on the 14th that it would conduct a 'confirmation payment' of loss compensation, stating that if proof of cooperation with past government quarantine measures is provided, loss compensation payments will be made. At this time, applicants were required to obtain and submit an 'administrative order compliance certificate' from local governments and education offices, but private tutors were excluded from the issuance target, sparking controversy over a 'blind spot.'

Baek Jin-ah, who runs a shopping mall in Paju-si, Gyeonggi, criticized the government's method of selecting loss compensation recipients based on sales criteria. She said, "Sales figures involve various variables such as inflation rate, logistics costs, labor costs, and advertising expenses," and criticized, "The current payment criteria and method, which exclude these factors, are rather causing the majority of small business owners to be excluded from loss compensation support." She added, "The payment criteria for loss compensation should include the criteria used for the 1st and 2nd quarantine support funds," and urged, "Please keep the promises the president made during his candidacy."

Kim Hyo-shin, who has been running a mobile phone wholesale and retail business in Incheon since June 2020, also raised her voice against the method of determining loss compensation recipients based on sales increase or decrease during a specific period. She said, "In a situation where prices are soaring daily, it is natural that sales in 2021 increased compared to 2020," and sharply criticized, "The government claimed to select loss compensation recipients scientifically, but is conducting incorrect administrative processing in an unscientific way."

The small business owners gathered at the site that day demanded the government to ▲ relax the loss compensation payment criteria to be the same as those for the 1st and 2nd quarantine support funds, ▲ withdraw the closure date criteria, and ▲ implement 100% retroactive application separately from the loss compensation payments.

Lee Dong-joo, a member of the Democratic Party of Korea who visited the site that day, said, "While the government outwardly says it listens to the voices of ordinary people, it only pursues policies focused on conglomerates and large corporations, such as lowering the top corporate tax rate, and does not listen to the voices of small business owners," and added, "We must heal the painful wounds of small business owners affected by COVID-19 through full execution of loss compensation payments."