Lee Jae-myung "Policy is about timing... Early payment of loss compensation for small business owners is necessary"

[Image source=Yonhap News]

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Lee Jae-myung, Governor of Gyeonggi Province, urgently proposed to the government that "loss compensation payments for small business owners hit by COVID-19 should be paid early," emphasizing that "timing is more important than anything in policy."

On the 25th, Governor Lee stated on Facebook, "With the Level 4 quarantine measures shortening business hours to 9 p.m., the sighs and laments of small business owners and self-employed people who can no longer endure are growing," adding, "Since timing is crucial in policy, all possible measures should be implemented immediately."

He particularly pointed out, "Although the 'COVID-19 Loss Compensation Act' passed the National Assembly last July, the 'Loss Compensation Deliberation Committee' will only be formed in October," and criticized, "(If this continues) actual compensation will only be possible at the earliest in November, which is too late."

Therefore, Governor Lee urged, "We need to find a way to pay loss compensation for damages in July and August before the Chuseok holiday in September through a prepayment-post-settlement method," emphasizing, "A budget of 1.2 trillion won for loss compensation has already been secured through supplementary budgeting, and necessary subordinate legislation preparations should proceed simultaneously."

He also proposed, "Above all, loss compensation must be made in accordance with the realities of small business owners," suggesting, "Fixed cost losses such as rent and labor costs must be reflected, and the payment target should be expanded to include small enterprises."

Furthermore, he requested bipartisan cooperation from the National Assembly and opposition parties, stating, "If necessary, additional budget increases should also be considered."

Governor Lee also urged the preparation and prompt processing of amendments to the 'Commercial Building Lease Protection Act.'

He emphasized, "Rent special cases should be extended until the end of COVID-19, tenants should be guaranteed the right to terminate lease contracts and refuse renewal, and forced eviction should be prohibited," adding, "It should also include provisions granting tenants who wish to close their businesses the right to terminate lease contracts."

He further explained, "The PPP (paycheck protection program) implemented in the United States is a system where small and medium-sized enterprises and self-employed people receive guaranteed loans and use them to maintain jobs, which leads to loan forgiveness," and said, "Our country also needs to introduce this system."

He added, "It would be good if the Korean-style PPP includes fixed costs such as labor and rent," and requested, "Please discuss a prepayment-post-settlement loan forgiveness method like in the U.S."

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