Controversy Over 'Pledge Retreats' on Loss Compensation and Real Estate... Transition Team Struggles to Explain

The Transition Team Issues Statement Explaining Reduction in Loss Compensation
"Support Exceeding 10 Million Won Is Also Planned"
Recent Real Estate Policy Causes 'Inconsistent' Controversy
As End Approaches, Controversy Over Policy Rollbacks Grows, Prompting Daily Clarifications

Ahn Cheol-soo, Chairman of the 20th Presidential Transition Committee, is announcing the welfare state reform plan of the Yoon Seok-yeol administration at the transition office in Tongui-dong, Jongno-gu, Seoul, on the afternoon of the 29th.
[Image source=Yonhap News]

The Presidential Transition Committee issued a clarification after controversy grew over the 'broken promise' regarding the COVID-19 loss compensation plan for small business owners and self-employed individuals. The committee had previously faced criticism for 'changing promises' when it described the redevelopment projects of first-generation new towns as a 'mid- to long-term national agenda,' causing some embarrassment in their explanations. Initially, the committee had even imposed a 'media blackout' but, as the final announcement of the national agenda approached and market confusion increased, they have been issuing daily clarifications.

On the 30th, the committee sent a statement to reporters saying, "There has been some confusion regarding the support measures for small business owners and self-employed individuals announced by the committee," and added, "The urgent relief support promised by the President-elect will be implemented as pledged."

Earlier, on the 28th, Transition Committee Chairman Ahn Cheol-soo announced a '100-day COVID-19 Emergency Response Roadmap,' planning to provide damage support funds to up to 5.51 million affected businesses depending on the extent of COVID-19 damage. While the committee stated that support funds would be distributed differentially based on the size of the business and the degree of damage, they did not disclose specific amounts. This led to backlash among small business owners and self-employed individuals who had expected at least 6 million KRW in cash support, viewing it as a de facto reduction of the pledge.

In response, Chairman Ahn clarified during a briefing the previous day, saying, "There was a misunderstanding in yesterday's announcement, so I want to correct it precisely," and explained, "We will retroactively apply loss compensation over the past two years and expand support beyond the industries specified in current law to include sectors such as travel, performance, and exhibition industries." However, as the controversy did not subside, the committee issued another statement to manage the situation.

The committee stated, "As promised to small business owners, the President-elect will immediately use more than 33.1 trillion KRW for urgent support for small business owners and self-employed individuals, excluding the 16.9 trillion KRW already allocated by the government through supplementary budgets this year," adding, "We plan to provide a larger amount than what the Democratic Party government had paid." In particular, the committee explained, "Support exceeding 10 million KRW is also planned."

The committee recently stirred controversy over the new government's real estate policy as well. On the 25th, regarding the revitalization policy for reconstruction in first-generation new towns such as Bundang and Ilsan, the committee stated it would be "reviewed as a mid- to long-term national agenda." Following backlash from residents of these new towns who had expected swift implementation and accused the committee of "breaking promises," the committee issued three to four additional statements over two days, reiterating their commitment to "proceed without delay."

The committee also caused controversy by initially planning to announce the Yoon Seok-youl administration's real estate policy last week but suddenly revising the position to "announce after the new government is launched." Nominee for Minister of Land, Infrastructure and Transport Won Hee-ryong said, "The real estate task force is smoothly reviewing policies, and we will make an external announcement during the confirmation hearings for the Minister of Strategy and Finance and the Minister of Land, Infrastructure and Transport," but a few hours later, Chairman Ahn corrected this by saying, "We will not announce the real estate policy during the ministerial hearings."

Expectations were high that the new government would ease the layered real estate regulations and improve market conditions, but the committee's wavering stance and somewhat passive attitude toward deregulation, mindful of short-term market changes, have led to renewed market caution, analysts say.

As controversies over retreating promises continued, the committee has shifted from its initial 'media blackout' stance to strengthen communication. Chairman Ahn told reporters the previous day, "At first, we prohibited all interviews because immature ideas were being released and causing public confusion," adding, "But now, with little time left, we need to announce finalized plans, so time is really tight."

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