Ruling and Opposition Parties Reach Consensus on Retroactive Application of Loss Compensation... Government Opposes Citing Confusion

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] On the 12th, the ruling and opposition parties reached a consensus on the retroactive application of loss compensation for small business owners affected by COVID-19. However, the government maintains its stance that retroactive application is not possible due to financial reasons, making difficulties expected.

On the same day, the National Assembly's Industry, Trade, and Small and Medium Venture Business Committee held a subcommittee meeting on small and medium venture businesses to discuss 30 agenda items, including the "Partial Amendment to the Act on the Protection and Support of Small Business Owners (Loss Compensation Act)."

The ruling and opposition parties agreed that losses incurred before the enforcement of the law should also be applied retroactively. However, since the government did not change its existing position against retroactive application, no common ground was reached.

Kim Jeongjae, a member of the People Power Party, stated, "All the proposed bills suggest retroactive application of loss compensation," and added, "It is only right to compensate those who have suffered damages."

When Jo Jeonghun, a member of the Transition Korea party, asked, "There are about eight committee members here; do you all support the retroactive application of the Loss Compensation Act?" all the members responded, "Yes."

However, Kang Seongcheon, Vice Minister of the Ministry of SMEs and Startups, pointed out, "If loss compensation amounts are calculated retroactively, some small business owners may have to have their compensation amounts deducted, causing confusion." He emphasized, "There are many people in difficulty among the public," and added, "We must consider fiscal responsibility and fairness."

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