Kwon Chil-seung: "Both Loss Compensation System and Disaster Relief Fund Formats Are Necessary"

[Asia Economy Reporter Oh Ju-yeon] Kwon Chil-seung, nominee for Minister of SMEs and Startups, stated at the Industry, Trade, and SMEs Committee hearing held on the 3rd that both the loss compensation system and disaster relief funds are necessary as measures for small business owners affected by COVID-19.

Kwon Chil-seung, nominee for Minister of SMEs and Startups, is delivering an opening statement at the confirmation hearing held at the National Assembly on the 3rd. Photo by Yoon Dong-joo doso7@

On that day, when Yoon Young-seok, a member of the People Power Party, asked which he was considering between 'disaster relief funds' and 'loss compensation,' he answered, "Both are necessary."

Nominee Kwon said, "Right now, speed is a very important factor," adding, "Since it will take considerable time to legislate the loss compensation system and actually pay it to the recipients, I think both tracks, including disaster relief funds, should be pursued."

Regarding universal and selective support for disaster relief funds, he said, "In a pandemic situation, when a specific group faces problems, universal support has limited effectiveness," emphasizing selective support.

Nominee Kwon mentioned that last year's real Gross Domestic Product (GDP) growth rate was minus 1%, indicating a relatively good performance amid the COVID-19 crisis, but self-employed and small business owners are facing difficulties. He said, "If there is some social consensus on the target, it is appropriate to focus support on such targets."

He continued, "In the case of universal support, using local currency provides an actual income effect," but emphasized, "However, in a pandemic situation, its effectiveness is limited, so if one has to be chosen, selective support is preferable."

However, regarding the opinion of Lee Nak-yeon, leader of the Democratic Party of Korea, who advocates simultaneously pursuing 'customized support' and nationwide 'universal support,' he replied, "I basically agree."

Kwon Chil-seung: "Both loss compensation system and disaster relief funds are necessary"

Kwon Chil-seung, nominee for Minister of SMEs and Startups, stated at the Industry, Trade, and SMEs Committee hearing held on the 3rd that both the loss compensation system and disaster relief funds are necessary as measures for small business owners affected by COVID-19.

On that day, when Yoon Young-seok, a member of the People Power Party, asked which he was considering between 'disaster relief funds' and 'loss compensation,' he answered, "Both are necessary."

Nominee Kwon said, "Right now, speed is a very important factor," adding, "Since it will take considerable time to legislate the loss compensation system and actually pay it to the recipients, I think both tracks, including disaster relief funds, should be pursued."

Regarding universal and selective support for disaster relief funds, he said, "In a pandemic situation, when a specific group faces problems, universal support has limited effectiveness," emphasizing selective support.

Nominee Kwon mentioned that last year's real Gross Domestic Product (GDP) growth rate was minus 1%, indicating a relatively good performance amid the COVID-19 crisis, but self-employed and small business owners are facing difficulties. He said, "If there is some social consensus on the target, it is appropriate to focus support on such targets."

He continued, "In the case of universal support, using local currency provides an actual income effect," but emphasized, "However, in a pandemic situation, its effectiveness is limited, so if one has to be chosen, selective support is preferable."

However, regarding the opinion of Lee Nak-yeon, leader of the Democratic Party of Korea, who advocates simultaneously pursuing 'customized support' and nationwide 'universal support,' he replied, "I basically agree."

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