Kwon Chil-seung: "There Are Other Support Methods Besides Legalizing Loss Compensation" (Comprehensive)

Opposition to Government Retroactive Support Claims Is Inaccurate
Controversy Over Disaster Relief Fund Recovery: "We Have Never Planned It"
Serious Accident Punishment Act to Be Implemented, Issues Will Be Quickly Addressed

At the 100-day inauguration press conference on the 27th (Maru 180, Seoul), Kwon Chil-seung, Minister of SMEs and Startups, is delivering the opening remarks. Photo by Ministry of SMEs and Startups

[Asia Economy Reporter Kim Heeyoon] Kwon Chil-seung, Minister of SMEs and Startups, stated that the government is discussing other support measures besides the legislation of loss compensation to assist small business owners affected by damages.

At a press conference marking his 100th day in office held on the 27th at Maru180 in Yeoksam-dong, Gangnam-gu, Seoul, Minister Kwon said, "We are stuck in legal debates regarding the loss compensation system, and there has been no discussion of additional support since the payment of the Emergency Relief Plus Fund. Apart from the legislative discussion on the loss compensation system, we need to consider support methods that can quickly put out the urgent fire first."

The Ministry of SMEs and Startups added that it is currently discussing with budget authorities the preparation of additional disaster relief funds for small business owners. This is interpreted as reflecting the minister’s intention that the 5th and 6th disaster relief funds are more urgent than the legislation of the loss compensation system.

Furthermore, Minister Kwon emphasized regarding claims that the government opposed the loss compensation system, "Expressions suggesting that the government opposed retroactive support or has not provided retroactive support are factually incorrect and unacceptable."

He also clarified the controversy over data related to estimated losses of small business owners. Regarding the "Estimated Losses and Previously Provided Support Fund Analysis for Small Business Owners under Gathering Bans and Business Restrictions" submitted by the Ministry of SMEs and Startups to the National Assembly’s COVID-19 Loss Compensation Act legislative hearing on the 25th, Minister Kwon explained, "Due to insufficient data, the estimated amounts were created using currently available data to estimate the budget and facilitate discussion. There is much controversy over fixed costs as well, so there will be significant variability going forward."

He added, "There has never been a plan to recover previously provided support funds, and the claim that the government opposes retroactive support is also incorrect since retroactive support was already provided through the Emergency Relief Plus Fund."

Earlier, the Ministry of SMEs and Startups estimated in the submitted data that disaster relief funds already paid to small business owners amount to 6.1 trillion won, which exceeds the estimated loss amount of 3.3 trillion won.

He also mentioned the issue of completed car manufacturers entering the used car market. Minister Kwon said, "Since many people’s livelihoods are at stake, it is a matter that cannot be handled through formal procedures alone. I think it is appropriate to wait a little longer and observe until a win-win solution is found."

Regarding the Serious Accident Punishment Act, he expressed his intention to promptly make improvements after its implementation. Minister Kwon emphasized, "There will be parts that do not fit reality during the implementation of the Serious Accident Punishment Act. We must show agility to immediately correct any parts that do not fit reality."

Regarding the second venture boom, Minister Kwon stated, "We plan to announce policies tomorrow to revitalize youth entrepreneurship. Through the measures to be announced tomorrow, we will newly promote programs from youth entrepreneurship preparation to dedicated commercialization programs and housing support to help young people freely challenge and succeed in entrepreneurship."

Minister Kwon, who has been visiting sites roughly every two days since his inauguration, mentioned future policy tasks including ▲ amending laws related to regulatory free zones demonstration projects ▲ establishing the K-Bio Lab Hub ▲ promoting smart factory distribution centered on KAMP ▲ supporting technology transfer startups based on cooperation with the Agency for Defense Development ▲ and promoting ESG management of SMEs through socially responsible companies.

After the briefing, Minister Kwon discussed ways to revitalize the venture ecosystem with Ji Sung-bae, Chairman of the Korea Venture Capital Association; Park Jae-wook, CEO of Socar; Kim Jong-yoon, Head of Yanolja Division; and Choi Sung-jin, CEO of Korea Startup Forum.

The 100-day press conference of Kwon Chil-seung, Minister of SMEs and Startups, was held on the 27th at Maru180 in Yeoksam-dong, Gangnam-gu, Seoul. Photo by Ministry of SMEs and Startups

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