Closed Due to Confirmed Case Visit... Compensation for Damages Remains 'Hopeless'

Businesses Closing Due to New Coronavirus Impact
Difficult to Receive Compensation Even When Suffering Losses
Legal Experts Say "Limits Even If Applying for Loss Compensation"

Foreign tourists visiting Myeongdong, Jung-gu, Seoul on the 3rd amid the ongoing spread of the novel coronavirus infection are wearing masks. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Song Seung-yoon] As the movement paths of confirmed cases of the novel coronavirus infection (Wuhan pneumonia) have been disclosed, the worries of businesses that have unintentionally become 'avoidance targets' are deepening. The legal community predicts that it will be difficult for these businesses to receive compensation for damages.

The Korea Centers for Disease Control and Prevention (KCDC) is disclosing the movement paths of confirmed novel coronavirus cases in accordance with the "Infectious Disease Prevention and Control Act" (hereinafter referred to as the Infectious Disease Act). More than 10 known locations, ranging from small businesses to large marts and department stores, have closed after being reported as places visited by confirmed cases. Some of these have resumed operations, but if additional movement paths are disclosed, the suspension of business could spread further.

For business owners, it is impossible to avoid immediate financial losses, but recovery of damages does not seem easy. Even if they apply for compensation for losses in the future, the likelihood of acceptance is low. Recently, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, expressed the government's intention to provide national-level compensation to businesses affected by the disclosure of movement paths; however, the scope and targets of compensation have not yet been concretely determined.

In 2015, during the Middle East Respiratory Syndrome (MERS) outbreak, the government paid compensation through consultations with the Loss Compensation Committee. At that time, some businesses received compensation, but most of the recipients were medical institutions or pharmacies. Lee In-jae, a lead attorney of a lawyers' group specializing in medical accidents, said, "Since the state did not commit any illegal acts, it will be difficult to receive compensation for damages. Compensation might be possible if the government establishes special legislation for compensation in the future, but that possibility seems low." Oh Ki-jung, an attorney at Taeshin Law Firm, also said, "Compensation claims can be filed if an individual suffers damages due to lawful exercise of public authority. However, it is uncertain to what extent such claims will be accepted." The current Infectious Disease Act mainly stipulates provisions regarding losses of medical institutions, so unless regulations are applied by analogy, it is the consensus in the legal community that it will be difficult for general businesses to receive full compensation for damages.

This content was produced with the assistance of AI translation services.