COVID-19 Business Loss Compensation: 'Self-Employed' Face Relative Discrimination

Medical Staff and General Business Owners Quarantined for the Same Period Receive Different Compensation Durations

Infectious Disease Control Act Limited to 'Care Institutions'... Compensation for the Entire Quarantine Period

Self-Employed R

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] #1. Doctor A was placed under self-quarantine from December 16 to 28 last year after a COVID-19 confirmed case visited the hospital he operated. The hospital he ran was also unable to open during the same period, and he received about 40 million won in loss compensation for 10 days excluding holidays.

#2. B, who runs a small pub in the neighborhood, was self-quarantined for 12 days from September 12 to 23 last year after a confirmed case visited the business. Since B operated the pub alone, he had no choice but to suspend business during this period. However, B’s loss compensation was calculated for only one day, amounting to just 100,000 won, not for the entire quarantine period.

It has been revealed that ‘loss compensation,’ which compensates income when self-quarantined due to COVID-19 and unable to operate a business, is relatively discriminatory against self-employed individuals compared to medical personnel, raising calls for legal and institutional improvements.

Self-employed people express dissatisfaction not with the amount of loss compensation but with the compensation period.

According to the quarantine authorities on the 11th, when the government or local governments order closures, business suspensions, or work stoppages due to COVID-19, loss compensation is calculated and provided according to the type of target.

Loss compensation is based on Article 70, Paragraph 1, Items 3 and 4 of the Infectious Disease Prevention and Control Act.

The daily business loss amount is calculated as ‘2019 operating profit fixed costs × (1 + average inflation rate from January to December 2020 (0.54%)) ÷ 365 days.’

If a business owner cannot operate due to self-quarantine, they can receive compensation for the verified business loss amount, but the compensation periods differ between medical personnel and self-employed individuals.

This is because the law defines loss compensation only for ‘medical institutions (hospitals, clinics, pharmacies).’

Medical personnel can receive compensation for the entire period of closure calculated by the daily business loss amount. In contrast, general businesses are only recognized for the ‘disinfection time’ of the business premises.

Simply put, self-employed individuals can claim business loss amounts like medical institutions, but they are compensated only for the disinfection time of 0.5 days, not for the entire period they could not operate.

The government operates a ‘simplified payment procedure’ system that compensates a fixed 100,000 won to support small business owners whose 2019-based business loss amount is significantly low, but this is also limited to the ‘disinfection’ period, not the entire period.

Therefore, even if self-quarantined and unable to operate during the same period, voices are rising that the compensation period between general business owners and medical personnel is unfair.

One self-employed person said, “Small business owners inevitably face economic difficulties when they are self-quarantined and cannot operate,” adding, “Doctors and pharmacists are compensated for the entire period they cannot operate, but general businesses are compensated for only one day under the pretext of ‘disinfection,’ which is unreasonable.”

He continued, “Debts have only increased over the past year due to COVID-19,” and pointed out, “It is the role of related agencies to look into these details.”

In response, a frontline quarantine official said, “We sympathize with the fact that self-employed people’s loss compensation is relatively discriminatory,” and added, “Legal and institutional improvements seem necessary.”

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