Hansang Chongryun "Extension of Social Distancing Measures Must Come with Significant Expansion of Compensation for Small Business Losses"

Multi-use Facilities Regret Maintaining Operations Until 9 PM
"Increase Compensation Amount and Eliminate Blind Spots"
"Ministry of Economy and Finance Must Join in Expanding Loss Compensation Budget"

Self-employed individuals and civic groups held a press conference on the 5th in front of the Constitutional Court in Jongno-gu, Seoul, titled "One Year Since Filing a Constitutional Complaint, Condemning the National Assembly and Government's Compensation Measures Full of Unconstitutionality." / Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of Small and Medium Business Owners and Self-Employed has called for an expanded and restructured compensation for losses to small business owners, following the government's decision to extend social distancing measures.

On the 14th, the Federation issued a statement saying, "The government's strengthened social distancing measures have been extended for three weeks," adding, "While the relaxation of private gathering limits from 4 to 6 people is welcome, it is regrettable that the operating hours for multi-use facilities remain restricted until 9 p.m."

They continued, "Self-employed individuals have been eagerly hoping for a relaxation of operating hour restrictions," and "Since this period coincides with the year-end special season, expectations were even higher, but the lack of improvement is deeply disappointing."

However, they noted, "It is welcome that an additional 3 million won in quarantine support funds will be provided on top of the existing 1 million won, but this is insufficient to alleviate the worries of self-employed business owners," emphasizing, "As the extension of social distancing has been decided, the government must significantly expand and restructure loss compensation."

They urged the government to increase compensation amounts for industries directly suffering from social distancing and to further expand the loss compensation budget to eliminate blind spots in compensation coverage.

They pointed out that the Ministry of Economy and Finance failed to accurately predict national tax revenue, resulting in an excess tax revenue of 60 trillion won compared to last year's original budget forecast, indicating sufficient fiscal capacity.

The Federation stated, "The Ministry of Economy and Finance has consistently taken a lukewarm stance on loss compensation, citing 'insufficient available budget' as the reason," and asserted, "Now that this excuse has been revealed as mere exaggeration, the Ministry must actively participate in expanding the loss compensation budget."

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