National Assembly Passes Small Business Loss Compensation Act… Ruling Party Says "No Retroactive Application Allows More Compensation"

Opposition Party Claims Retroactive Application While Proposing Amendment

[Asia Economy Reporter Naju-seok] The Small Business Loss Compensation Act passed the National Assembly plenary session on the 1st. The opposition party proposed an amendment focusing on retroactive application, but it was rejected, so compensation will be made after the law is promulgated without retroactive application.

[Image source=Yonhap News]

On that day, the National Assembly held a plenary session and approved the Small Business Loss Compensation Act. Regarding this law, which passed the relevant standing committee and the judiciary committee solely by the ruling party, the opposition party submitted an amendment allowing retroactive application, but it was rejected.

According to this amendment, if small business owners suffer business losses due to measures such as gathering bans under the Infectious Disease Control and Prevention Act, the state must compensate them. The compensation criteria will be decided through discussions by a review committee under the Ministry of SMEs and Startups, including related experts and representatives of small business owners.

Initially, the ruling and opposition parties were divided over the retroactive application of this law.

The opposition party argued that small business owners who have already suffered damages before the law should be eligible for support through retroactive application. Members of the People Power Party and the Justice Party agreed with this claim.

On the other hand, the ruling party opposed retroactive application, citing issues such as overlap with existing damage support funds. The approved bill applies from the time the law is promulgated.

Jeong Tae-ho, a member of the Democratic Party of Korea who spoke in favor of the amendment, explained, "According to simulations, among about 680,000 small business owners affected by administrative orders, 81.7% would be excluded from support if retroactive application is applied," adding, "These small business owners have already received more disaster relief funds." He said that applying retroactive compensation could result in small business owners receiving less support, so they chose a damage support method excluding retroactive application.

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