Min Byung-deok: "We Must Resolve Retroactive Compensation for Losses Even by Issuing National Bonds"

[Asia Economy Reporter Oh Ju-yeon] On the 6th, Min Byeong-deok, a member of the Democratic Party of Korea, said, "Those who received (COVID-19) administrative orders should be directly compensated for their losses, even if it means issuing government bonds."

On the same day, Min appeared on TBS Radio's 'Kim Eo-jun's News Factory' and stated, "Since President Moon Jae-in also described this as a wartime situation, a different perspective on fiscal policy is needed in such difficult times," adding, "The key is to issue government bonds."

[Image source=Yonhap News]

Min proposed the COVID-19 Loss Compensation Act as the main sponsor, which aims to compensate up to 70% of losses for businesses designated as restricted due to the spread of COVID-19. On the 25th of last month, he, along with Choi Seung-jae of the People Power Party and Sim Sang-jung of the Justice Party, announced a 'Joint Request by Three Parties' for the retroactive application of loss compensation, strengthening efforts to pass the COVID-19 Loss Compensation Act in the National Assembly.

On the same day, Min explained, "Loss compensation should be applied retroactively, and the scope should be discussed and decided by fiscal authorities," emphasizing that compensation should cover losses compared to the average sales during the same period over the past three years immediately before the assembly ban order.

He elaborated, "For example, if the assembly ban period is from November 15 to December 30, 2020, a total of 45 days, sales during the ban period would be zero. However, sales during the same 45-day period in 2019, 2018, and 2017 are available, so we can take the average of those."

Min added, "This means compensation should be provided within a range that does not exceed a certain percentage of the lost sales amount."

He pointed out that the main reason for opposition to this is fiscal concerns.

Min emphasized the need for a different perspective on fiscal policy in difficult wartime situations and stressed the necessity of issuing government bonds.

He said, "There are ways to secure funding, such as adjusting the budget or increasing taxes, and also creating funds. But if there is a flood disaster, would it make sense to collect flood relief donations or raise taxes to help the flood victims when immediate aid is needed?"

He continued, "All countries facing the same dilemma have issued government bonds like this," and stressed, "Our country should do the same."

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