[2023 National Audit] Lee Young "Disaster Relief Fund Advance Payment Should Be Recovered... Considering Support Measures"

Recovery Decision Under Subsidy Act During Moon Jae-in Administration
Recovery Plan Not Yet Determined

Lee Young, Minister of the Ministry of SMEs and Startups, said on the 27th, "The first and second disaster relief funds that were paid in advance must be recovered."

Minister Lee Young, Ministry of SMEs and Startups
Photo by Yonhap News

Minister Lee stated this during the National Assembly inspection by the Industry, Trade, and SMEs Committee held in the afternoon, saying, "The previous (Moon Jae-in) administration instructed recovery under the Subsidy Act, and we even received the documents related to that during the handover process."

He continued, "However, since small business owners are currently struggling, it is difficult to proceed strictly according to the principles," and explained, "We are reviewing what methods exist within my authority and the Ministry of SMEs and Startups' authority to support small business owners legally, including exemptions."

He refrained from specifying when the recovery would take place. In response to a question from Park Young-soon, a member of the Democratic Party of Korea, asking "When will the recovery happen?" Minister Lee replied, "A plan for that has not yet been established."

He also said, "Since the previous government already organized the recovery of (disaster relief funds) in the preface, failing to recover would be a breach of trust."

During the COVID-19 pandemic, the government paid the first and second disaster relief funds in advance to small business owners under the names 'New Hope Fund' and 'Support Fund.' The funds were paid in advance even without tax data for simplified taxpayers with sales under 80 million won, but opinions have emerged that recovery is necessary as sales increases were confirmed during the COVID-19 period.