Hong Nam-ki: "Follow-up Measures Will Be Taken for Support Funds Paid to Small Business Owners with Rapid Sales Increase"

National Assembly Planning and Finance Committee National Audit

Deputy Prime Minister for Economy Hong Nam-ki is attending the National Assembly's Public Administration and Security Committee's audit of the Ministry of Economy and Finance held at the National Assembly on the 20th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Sejong=Asia Economy Reporter Kim Hyun-jung] Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki expressed his intention to recover funds, stating that "follow-up measures will be taken," in response to criticisms that execution monitoring was negligent, as disaster relief funds were also paid to small business owners whose sales surged.

At the National Assembly's Planning and Finance Committee's audit held in Yeouido, Seoul, Hong Nam-ki responded to People Power Party lawmaker Choo Kyung-ho's criticism that disaster relief funds for small business owners were paid even to business owners whose sales significantly increased, saying, "There should be follow-up measures, and standards will be established."

Hong explained, "It was difficult to verify each case last year and this year, so we initially made payments and planned to settle accounts later," adding, "If there is a significant difference in (sales increase or decrease), we will take action."

Earlier, lawmaker Choo claimed that hundreds of millions of won in support funds were paid to business owners whose sales greatly increased. According to Choo, a business owner in Incheon who operated an indoor sports facility changed their business to real estate in the second half of 2020, and their sales increased from 891.79 million won in 2019 to 19.7395 billion won in 2020, with a sales increase amounting to 18.84771 billion won. However, they received a total of 8 million won in small business disaster relief funds, including 3 million won from the Support Fund and 5 million won from the Support Plus Fund, as an indoor sports facility business subject to gathering restrictions. A cosmetics wholesaler in Incheon also saw sales increase to 4.719 billion won in 2020 compared to 2019 and received 3 million won in disaster relief funds. Meanwhile, a travel agency in Seoul experienced a sales decrease of 34.639 billion won in 2020 compared to 2019 but was confirmed to have received the same 3 million won in disaster relief funds.

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