Kwon Chil-seung "Compensation for Losses Cannot Be Applied Retroactively"... Ryu Ho-jeong "Cowardly"

Minister of SMEs and Startups Reaffirms Position at National Assembly Industry Committee
"Retroactive Application, Even God Wouldn't Know How Much to Pay"
"Legal Debate Item, Potential Losses for Small Business Owners"
Ryu Ho-jeong Questions "Is It Because There Is No Data?"

Minister Kwon Chil-seung of the Ministry of SMEs and Startups / Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Bo-kyung] Kwon Chil-seung, Minister of SMEs and Startups, reaffirmed on the 18th that retroactive application of the loss compensation system for small business owners is difficult. Ryu Ho-jeong, a lawmaker from the Justice Party, criticized, saying, "Are you saying you can't compensate for losses because there is no data?" and called it "cowardly."

Minister Kwon stated during the review of the supplementary budget under the jurisdiction of the Ministry of SMEs and Startups at the National Assembly's Industry, Trade, and SMEs Committee plenary session that day, "The current government position on loss compensation is that retroactive application is difficult."

He said, "It would be good to provide sufficient compensation or support, but there are various constraints," adding, "Loss compensation and damage support (such as the Buffer Fund) are distinctly different."

He explained that while damage support can be planned and distributed by the government according to budget circumstances and fairness, loss compensation is based on the premise that setting standards is difficult and individual differences are significant.

Minister Kwon said, "For example, if someone running a restaurant was sick and did not open their business, it would be difficult to demand loss compensation," adding, "There will be tens of thousands of such cases."

He continued, "Even when providing the Buffer Fund, if we had data to identify individual differences and pay differently to each restaurant, we would have certainly done so."

Ryu Ho-jeong, Justice Party member
Photo by Yonhap News

He emphasized, "If loss compensation must be legally applied retroactively, even a god would not know how much would need to be paid in the future."

He added, "Whether to base it on fixed costs, operating profit, or sales, and how to weight operating profit, individuals may accept or reject these criteria."

He predicted, "If we get bogged down in this discussion, it will be difficult for the government to set a budget for damage support," and "A situation where it is unknown how much more will be needed is expected."

He also expressed concern, saying, "The loss compensation system is being seen as a 'magic wand,' but if we get caught up in legal disputes, it could actually cause harm to small business owners."

He added, "If it is decided that loss compensation should be applied retroactively from the day COVID-19 occurred, there is a high possibility that projects from other government ministries such as the Ministry of Health and Welfare and the Ministry of Employment and Labor will be significantly constrained."

Ryu Ho-jeong, a lawmaker from the Justice Party, criticized, "COVID-19 has lasted quite a long time, but are you saying you cannot compensate for losses because there is no data? I think that is a cowardly excuse," and said, "It is unreasonable to compare individuals who were sick and could not open their businesses with those who were forced to close."

In response, Minister Kwon said, "Why is that unreasonable? If we follow the logic of loss compensation, each case must be examined," and "It is not cowardly at all. There is no other country besides ours operating a loss compensation system."

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