Transition Committee COVID-19 Special Task Force Reviews Increase of Compensation Adjustment Rate and Minimum Amount for Small Business Losses

by Jeong Donghoon

Published 15 Apr.2022 11:07(KST)

On the morning of the 15th, Hong Kyung-hee, Deputy Spokesperson of the Presidential Transition Committee, is giving a briefing on the "Measures to Eradicate Wasteful Management in Public Institutions" at the briefing room of the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul.

[Asia Economy Reporter Jeong Dong-hoon] The Presidential Transition Committee's (Transition Committee) COVID-19 Emergency Response Special Committee announced on the 15th that it has considered raising the adjustment rate and the minimum amount related to compensation for losses of small business owners.

Hong Kyung-hee, deputy spokesperson for the Transition Committee, said at a briefing on current issues that "the Special Committee discussed compensation for losses of small business owners and disaster relief fund support measures at the livelihood economy division meeting on the 13th, aiming for 'full compensation for losses'." It is known that the Special Committee discussed compensation guidelines, including raising the adjustment rate and minimum amount, with the Ministry of SMEs and Startups.

President-elect Yoon Seok-yeol promised to provide "full compensation for losses" to small business owners who were subject to COVID-19 gathering ban administrative orders. The main point was to raise the adjustment rate, which is used to estimate the direct loss amount caused by quarantine measures from the current 90% to 100%, and to increase the minimum amount from the existing 500,000 won.

The Ministry of SMEs and Startups, separately from loss compensation, calculated compensation amounts and targets for disaster relief payments under various scenarios, and reported the simulation results of payment scale, method, target, and timing to the Special Committee. The Special Committee plans to discuss enhanced loss compensation plans along with policy finance and tax support for small business owners at the livelihood economy division meeting next week.

Deputy spokesperson Hong also stated, "The Special Committee held a health and medical division meeting on the 14th to discuss the government's easing of social distancing measures." The Special Committee agreed with the government's report on lifting social distancing measures such as business hours, private gatherings, events, and assemblies, but expressed the opinion that the lifting of outdoor mask mandates should be carefully reviewed.

Meanwhile, the Special Committee reported to President-elect Yoon the direction and detailed tasks of the 'COVID-19 100-day Roadmap' project the day before. Hong said that Yoon emphasized prompt compensation and support for small business owners and self-employed individuals, as well as stockpiling treatments in preparation for a winter resurgence.