Ando Geol, Deputy Minister for Economic Affairs, "Promoting Legislation of Loss Compensation System... Need for a Layered Structure with Separate Fund + Private Insurance"

Ando Geol, Deputy Minister for Financial Policy, Mentioned in Meeting on the 14th
"Possible to Activate Mutual Aid System or Utilize Private Insurance Functions"
"Will Review National and Private Cooperation Together to Create a Rational System"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kim Hyunjung] On the 14th, Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, announced that he will promote the legislation of the ‘Small Business Loss Compensation System,’ which is rapidly gaining momentum due to the COVID-19 crisis, through a multi-layered structure utilizing a separate fund and private insurance.

Vice Minister Ahn held a briefing at the Ministry of Economy and Finance press room in the Sejong Government Complex on the morning of the same day and said, "The legislation of the loss compensation system is a task that should be approached proactively." The loss compensation system is designed to legally compensate small business owners and self-employed individuals who have suffered losses due to government guidelines or regulations. Currently, the Ministry of Economy and Finance is reviewing the targets, scale, methods, and funding plans through research projects.

Vice Minister Ahn explained that the loss compensation system is being discussed as a multi-layered structure combining national policy support using funds and the functions of private insurance. He stated, "While the government provides policy support, there are limits, so it is necessary to respond through a mutual aid deduction method. Existing deduction systems such as the current Noryangwoosan Gongje (Yellow Umbrella Mutual Aid) can be revitalized, or the functions of private insurance can be utilized," he added.

He continued, "We will review the parts the government should handle and those that require cooperation with the private sector to provide predictable damage support in a sustainable form through a reasonable system." Regarding funding, he mentioned, "There are limits to using contingency funds or preparing supplementary budgets," and added, "To ensure more stable national support, a separate fund in the form of a national disaster management fund will be necessary."

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