MoEF, Ruling Party's Loss Compensation Law "Unacceptable".. Party-Government Differences Persist

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] It has been confirmed that the Ministry of Economy and Finance has officially expressed opposition, stating "unacceptable," to the Democratic Party of Korea's plan to propose an amendment to the Small Business Support Act that includes grounds for loss compensation for self-employed and small business owners.

According to the National Assembly on the 15th, the Welfare Committee shared a review report summarizing the government's opinion with lawmakers ahead of the plenary session scheduled for the 17th to discuss 11 amendments to the Infectious Disease Control and Prevention Act, which include grounds for loss compensation.

In the review report, the Ministry of Economy and Finance explained, "'Gathering restrictions and prohibitions' under Article 49, Paragraph 1, Subparagraph 2 of the Infectious Disease Control and Prevention Act and the amendment's 'business suspension and restrictions' are general and social constraints imposed preventively on an unspecified majority to prevent the spread of infectious diseases," adding, "Considering the purpose and intent of the law, the unspecified nature of the scope and items of losses, and the difficulty of proving losses, it is necessary to be cautious about expanding the scope of compensation." It also explicitly stated that it is "unacceptable."

As the ruling party plans to propose the loss compensation bill within the February extraordinary session and start discussions from March, the Ministry of Economy and Finance's official stance of "unacceptable" is expected to further intensify conflicts between the ruling party and the government.

Meanwhile, the Ministry of Health and Welfare also expressed a reserved position, stating, "The Ministry of Health and Welfare has little relevance to the work of self-employed and small business owners," and "It is necessary to be cautious about including direct provisions for loss compensation in the Infectious Disease Control and Prevention Act, which aims to protect the life and health of the people."

The Ministry of Health and Welfare mentioned, "In light of the purpose and scope of the law, it is appropriate to amend the Small Business Act or enact a special law to protect and support the stability of small business owners and small and medium-sized enterprises."

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