Small Business Owners: "Expectations Dashed by Social Distancing Extension... What Was the Purpose of the Quarantine?"

On the 17th, as the government announced strengthened social distancing measures until the end of the year due to the rapid increase in COVID-19 confirmed cases, a closed store is locking its door on Myeongdong Street in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Junhyung Lee] On the 31st, as the government extended the current social distancing measures for two more weeks until the 16th of next month, small business owners protested, saying "our hopes have been dashed."

The Korea Federation of Small and Medium Business (KSMB) stated in a commentary that "small business owners and self-employed individuals, who cannot properly operate their businesses due to the nationwide high-intensity business restrictions and the implementation of the vaccine pass, had some hope as the number of confirmed cases began to decline, but once again, those hopes have been dashed," adding, "We cannot hide our deep disappointment and frustration." They further said, "During the special quarantine period, confusion caused by the vaccine pass only intensified on-site, and unilateral sacrifices were forced upon small business owners and the self-employed," and added, "We want to ask what the government's policy for lowering (social) distancing was really for."

The KSMB emphasized full compensation for losses. They stated, "Small business owners want 100% compensation for their losses," and argued, "In the situation where a new phase of nationwide business restrictions has unfolded after the suspension of daily recovery, full compensation based on the Loss Compensation Act should be implemented properly." They continued, "The KSMB urges the government to expand the scope of the Loss Compensation Act through amendments to the enforcement decree, including personnel and facility restrictions, and to provide bold financial support to cover blind spots in the Loss Compensation Act."

They also called for discussions on an additional supplementary budget (Chugyeong) of 100 trillion won to support small business owners. The KSMB said, "Presidential candidates are also unanimously advocating for expanded financial support, including 100 trillion won in aid," and added, "We urge the National Assembly to discuss the 100 trillion won supplementary budget plan to support small business owners, so that it does not remain just a slogan but becomes a reality."

Regarding the government's plan to pay loss compensation in the first quarter of next year, they gave a positive evaluation. The KSMB said, "The government announced a policy to prepay 5 million won in loss compensation to 550,000 small business owners and then settle accounts afterward," and added, "The prepayment and post-settlement policy is a plan that the KSMB has advocated for, and we positively evaluate the government's shift in response."

The KSMB expressed hope for additional measures that significantly expand the payment targets so that the majority of businesses expected to suffer sales damage due to strengthened quarantine measures can benefit, saying, "We urge the government to present a clear roadmap for quarantine policies, including the deadline for lifting business restrictions, and to expand the scope of prepayment recipients."

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