Hong Ik-pyo "Considering Higher Compensation for Self-Employed Losses than the 3rd Disaster Relief Fund"

Hong Ik-pyo, head of the Inequality Resolution Task Force, is delivering opening remarks at the 1st meeting of the Post-Corona Inequality Resolution Task Force held on the 15th at the National Assembly Members' Office Building. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Jeon Jinyoung] Hong Ik-pyo, the Policy Committee Chair of the Democratic Party of Korea, stated on the 26th that regarding the scale of loss compensation for self-employed individuals being discussed in the political sphere, “We are considering raising the scale level based on the criteria of the 3rd disaster relief fund.”

In an interview with KBS Radio’s ‘Kim Kyung-rae’s Strongest Current Affairs’ on the morning of the same day, when asked about the method of estimating the damage scale, Hong said, “Since the 3rd disaster relief fund for small business owners has recently been provided, we are also considering raising the support scale and level based on that standard.”

He added, “We are currently continuing discussions among the party, government, and Blue House on various approaches,” and “Although nothing has been finalized yet, we are preparing a compensation system and, independently of that, are considering a two-track approach for realistic support methods.”

Regarding the point made by Kim Yong-beom, the 1st Vice Minister of Strategy and Finance, that “there are almost no countries that have legislated loss compensation for the self-employed,” Hong explained, “In fact, there are very few cases where it has been specifically legislated,” but added, “However, support is provided so generously that legislation is unnecessary. The compensation level is very high. They provide support several times greater than ours, so the need does not arise.”

Regarding Prime Minister Chung Sye-kyun’s comment calling the media reports about the ‘100 trillion won loss compensation bill’ “malicious,” Hong said, “It is a proposal by the same party’s Min Byung-duk, but it is not an official position,” and added, “It is wrong to report as if a specific lawmaker’s proposal represents the entire Democratic Party’s stance. Rather, the 100 trillion won was mentioned by Kim Jong-in, the Emergency Committee Chairman of the People Power Party, who said it should be secured through an emergency financial order.”

He questioned, “Is the 100 trillion won proposed by our party or Min Byung-duk bad, but the 100 trillion won by Chairman Kim acceptable?” and pointed out, “It is not a situation where that is immediately possible, and we also need to review our financial situation to that extent.”

He continued, “To talk about a 100 trillion won bill based on a specific lawmaker’s proposal is a deliberate attempt to ridicule and create negative public opinion,” emphasizing, “We need a sober assessment of the damage situation and consider how much of the government’s financial burden can be borne.”

Meanwhile, regarding the compensation method?whether to pay amounts proportionate to losses or to pay a uniform amount?he said, “If we go with a fixed rate system, the speed slows down, and if we go with a fixed amount system, issues of fairness arise,” adding, “We need to discuss with the financial authorities to find an appropriate balance point.”

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