Small Business Owners: "Government Support Measures Insufficient... Compensation Act Coverage Must Be Greatly Expanded"

'Items from Closed Stores Suffering Due to COVID-19'
(Seoul=Yonhap News) Reporter Im Heon-jeong = The government has decided to provide quarantine support funds worth 1 million won to 3.2 million small business owners whose sales have declined due to special COVID-19 quarantine measures.
120,000 businesses in restricted sectors such as beauty salons and kids cafes will be newly included in the small business loss compensation program.
The government announced the expansion plan for quarantine support funds and loss compensation on the 17th.
The photo shows items being unloaded from a closed store in Hwanghak-dong Kitchen Furniture Street, Jung-gu, Seoul on the same day. 2021.12.17
Photo by kane@yna.co.kr
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[Asia Economy Reporter Lee Junhyung] On the 17th, when the government announced support measures for small business owners and self-employed individuals following strengthened COVID-19 quarantine measures, small business owners pointed out that the measures are "insufficient."

The Korea Federation of Small and Medium Business (KSMB) stated in a commentary that "this plan is evaluated as the government having accepted a significant portion of KSMB's demands, marking considerable progress away from the unilateral announcement of strengthened quarantine policies," and added, "there is a high possibility that industries previously excluded from small business support funds will now be included."

However, KSMB holds the position that government support is insufficient to resolve the damages suffered by small business owners. KSMB said, "The newly strengthened quarantine measures are the strongest ever," and "there are concerns that it will deliver an irreparable fatal blow to small business owners who had hoped for business recovery during the year-end and New Year period." They continued, "The astronomical damages to small business owners caused by quarantine policies that may last for several months are insufficiently addressed by this support plan," and added, "In a situation where actual labor cost-level support is needed to establish the quarantine pass testing, the quarantine support fund of 1 million won is insufficient."

They also argued that small business owners should be compensated 100% for losses incurred due to government quarantine guidelines. KSMB stated, "Reflecting voices from the field, the number of businesses eligible under the Loss Compensation Act, currently at 900,000, needs to be significantly increased," and emphasized, "We reiterate that losses of small business owners due to the current quarantine measures must be fully compensated 100%, and we hope this plan becomes an opportunity for complete loss compensation." They also expressed hope that "measures like this support plan will continue consistently in the future."

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