Lee Nak-yeon Proposes Small Business Support Package with 'Loan Support First, Damage Settlement Later'

Introduction of Korean-style Paycheck Protection Program (PPP), Legislative Efforts to Resolve Rent Issues
Proposal of Small Business Support Measures at 'COVID-19 Small Business Crisis Solutions' Forum on 24th

[Asia Economy Reporter Oh Ju-yeon] Former leader of the Democratic Party of Korea, Lee Nak-yeon, proposed combining the currently bifurcated disaster relief funds and loan support into a single package to provide practical support for small business owners.

On the 24th, Lee attended the "COVID-19 Small Business Crisis and Solutions Forum," co-hosted by lawmakers Seol Hoon, Park Kwang-on, Yang Ki-dae, Hong Ik-pyo, Choi In-ho, Jung Tae-ho, Lee Byung-hoon, Hong Ki-won, and Hong Sung-guk, and emphasized that "Small business owners sacrificed themselves at the government's request for the life and safety of the people. If the self-employed who supported K-Quarantine end up with a label of bad credit, how can we answer the question 'What is the state?'" He stressed that fair compensation is the responsibility of the state.

[Image source=Yonhap News]

Lee said, "Small business owners endure by borrowing money, but if they cannot hold on, they close their businesses, and they cannot even close their businesses for fear of becoming bad credit borrowers. That pain is exceeding the critical point," adding, "First, it is necessary to provide funds needed for survival through ultra-low interest loans, and later reduce the loan repayment burden with disaster relief funds." He proposed the solution of 'loan support first, damage settlement later.'

Lee also proposed the formal introduction of the Korean-style Paycheck Protection Program (PPP), as suggested by Kim Ki-moon, chairman of the Korea Federation of SMEs. He said, "The PPP, where the government repays or forgives loans if small business owners borrow to pay workers' wages, was first started by the U.S. federal government after COVID-19," and added, "Protecting employment of small business owners is protecting jobs, so I will negotiate with the government to accept and implement the PPP in a Korean version as soon as possible."

The U.S. Paycheck Protection Program (PPP) was introduced by the Trump administration to help companies struggling with COVID-19 maintain employment. It provides unsecured loans of up to $10 million (about 1.19 billion KRW) to companies with fewer than 500 employees, and if the loan is used for payroll and the company maintains employee employment for a certain period, the loan repayment is forgiven.

Lee particularly emphasized, "The top priority demand of small business owners is rent support, so the rent issue, which is the biggest burden for small business owners, must be practically resolved." He promised to work to expedite the passage in the National Assembly of the 'Small Business Protection Act,' which supports rent for small business owners in restricted or closed sectors, and the 'Mutual Savings Bank Act' and 'Specialized Credit Finance Business Act,' which provide grounds for good landlords to request interest rate reductions from financial institutions.

Along with this, he said, "As the non-face-to-face and platform economy strengthens due to COVID-19, we must ensure the playing field is not tilted toward large platform corporations," and pledged to work for the passage of the three coexistence solidarity laws (Business Loss Compensation Act, Cooperative Profit Sharing Act, Social Solidarity Fund Act) that he proposed during his tenure as party leader.

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