Small Business Association: "Support Measures Somewhat Helpful but Compensation for Damages Insufficient"

The Ruling Party, Government, and Blue House Senior Meeting on Support Measures for Small Business Owners Announced Their Position

A quiet scene at Namdaemun Market in Seoul on the morning of the 15th. Photo by Yonhap News

[Asia Economy Reporter Kim Heeyoon] The Korea Federation of Micro Enterprise Associations positively evaluated the government's measures for small business owners on the 28th but pointed out that overall, they are insufficient.

In a statement released that day, the Federation said, "Considering that sales have been at an average of 70% or less compared to the previous year since February, each store has suffered damages ranging from tens of millions of won to several hundred million won in the case of businesses subject to suspension or restrictions," adding, "The recent measures by the ruling party, government, and Blue House are generally insufficient to compensate for the damages incurred by small business owners."

They also stated, "Although an additional 1 million won is provided under the name of rent support, the average monthly rent burden for small business owners, including those in provincial areas, was about 1.22 million won in 2018, which is less than one month's rent," and criticized, "As numerous rent reduction bills are being discussed in the political sphere, we hope that this measure will serve as an opportunity for the National Assembly to fulfill its fundamental role as a people's assembly and enact highly effective policies."

Regarding the three-month deferral plan for electricity bills, employment and industrial accident insurance premiums, and national pension contributions from January to March next year, they emphasized, "It is merely a simple deferral measure, and considering that the payments must be made eventually, we urge for more bold reduction measures."

The Federation added, "The damages suffered by small business owners can only be somewhat overcome if accompanied by the government's strong compensation measures," and "We hope that the insufficient parts of this measure will be addressed through future supplementary budgets, legislative bills in the National Assembly, and follow-up measures by local governments, leading to policies that help small business owners emerge from the dark tunnel of the COVID-19 crisis."

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