Small Business Federation Criticizes Prime Minister Jeong... "Compensation for Business Losses Should Be Applied Retroactively"

Sogongyeon, "Like Fixing the Barn After the Cows Are Dead" Commentary

[Image source=Yonhap News]

[Asia Economy Reporter Junhyung Lee] Small business owners criticized Prime Minister Chung Sye-kyun for stating that the scope of the Small Business Operating Loss Compensation System is not retroactive.

The Korea Federation of Small and Medium Business (KSMB) expressed concern on the 27th through a statement, saying, "The laws and systems related to operating loss compensation should rightfully be applied retroactively," in response to Prime Minister Chung Sye-kyun's remark on the 26th that "the Small Business Operating Loss Compensation System was not intended to be retroactive."

The KSMB pointed out, "Prime Minister Chung recently stated on a broadcast that he reached a consensus with the President and plans to institutionalize the system within the first half of the year," adding, "It is like raising expectations of support and then fixing the barn after the cows have died."

They continued, "It is obvious that future losses will be much less than the losses incurred so far," and noted, "Min Byung-duk, a member of the Democratic Party who introduced the 'COVID Loss Compensation Act,' said that retroactive application of the bill is natural."

They also stated that retroactive application of loss compensation is a constitutional right. The KSMB said, "Article 23, Paragraph 3 of the Constitution stipulates that even when lawful public authority is exercised, if losses occur, they must be compensated," and argued, "The government must immediately compensate for the damages incurred so far, not just future losses."

They emphasized, "If discussions on the (loss compensation system) are prolonged, we hope that the President will issue an emergency administrative order so that the operating losses suffered by small business owners up to now are effectively compensated."

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