Small Business Owners Requiring “Limited Tenant Cash Support” Rent Suspension Act



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Although the government and ruling party have promised cash support for the self-employed and small business owners affected by Corona 19, voices continue to say that a fundamental policy of reducing shopping center rental rates is needed. The Democratic Party lawmakers who initiated the so-called “mental suspension method” held an emergency debate with small business owners and demanded a “fair rent charge.” The debate took place on the afternoon of the 29th without an audience and was broadcast live online.

Earlier, the Party Administration (Democratic Party, Government and Blue House) announced on the 27th that it will pay 1 million won to small business owners and freelancers whose sales have declined as a result of the third disaster support measure. Revealed. The intent is to ease the burden on tenants who are limited in business as high intensity social distancing for COVID-19 prevention continues. Also expanding is the “Good Landlord Movement,” which provides tax credits to landlords who voluntarily lower their rent.

However, those who attended the debate on behalf of small business owners and the self-employed expressed regret at the approach of the government and the ruling party. “The support itself is welcome, but it is still not enough to alleviate the damage of medium and large companies,” said Bang Ki-hong, president of the Federation of Korean Small and Medium Business Owners. “At the point of solving the rent with cash support, the landlord’s share of the pain is still unaccompanied.” Not me. “” If the rent is provided in cash, like the second disaster support fund, there is a high possibility that it will not lead to economic revitalization. In other words, it is not a countermeasure to prolong the third pandemic. “

▲ On the 27th, an appeal letter was posted at a store in an underground mall near Myeong-dong, Seoul.  ⒸYonhap News
▲ On the 27th, an appeal letter was posted at a store in an underground mall near Myeong-dong, Seoul. ⒸYonhap News

Park Ji-ho, general secretary of the Board of Merchants (Mam Sang-mo), who wants to do business with ease, said: “For the support to be effective, it must be differentiated according to the income situation of each tenant, and the Rent is incurred on a monthly basis, so it must be done on an ongoing basis until the administrative order is stopped. However, since the rents of millions of shopping centers are all different, it is not practical to understand them. “The current government’s disaster support method is set at 1 million won and 2 million won for each type of business. This is unfair to self-employed tenants in their own buildings. It can be income and it is not very useful to the tenant who pays a rent of 5 million won or 10 million won. “

He also noted the limitations of the “good landowners movement.” Principal Park said: “If a tenant is given autonomy and a commercial suspension or restriction is recommended, no tenant will follow it. In other words, just as an administrative order was issued for the tenant, the effect can only be achieved if there is coercion, “he said.” The landlord who joined the landlord is a landlord who is related to the government, such as a public institution, or just a few who recognized that landlord and tenant have a mutually beneficial relationship. “

Director Park said: “Considering the reality that the effect is not great and crown 19 can be prolonged, we must change the method. Instead of a small number of dissenting opinions, it should be done effectively in the direction of the socially disadvantaged, “he said.” The rental fee should be distributed to the mall’s stakeholders, such as tenants, landlords, and financial institutions, and the government should support the insufficient part with taxes. ”He insisted.

In President Bang’s case, “Through the Rent Stop Act, we reduce the burden of rent for small business owners and the self-employed, we provide emergency disaster support funds to homeowners. small businesses and the self-employed as compensation for damages and in addition, we provide local gift certificates of love to revitalize the economy as the premier disaster support fund. “The only way to overcome the current situation is that the payment of universal disaster subsidies for all the people through the parallel is the only way to overcome the current situation.”

Currently, there are four amendments to the Commercial Lease Protection Act, which can be viewed as the ‘End of Rental Act’. △ Move-in plan for members of the Democratic Party (prohibits rental claims for tenants subject to housekeeping in accordance with the Infectious Disease Prevention Act and guarantees the extension and delay of repayment of loans by the landlord) Proposal of the member of the Jun-Byeong Yoon Democratic Party (if the business is restricted or suspended due to the ban on group restrictions according to the Infectious Disease Prevention Act, the reason for the rent reduction is considered to have occurred) ‘In case of completion and a 30% or more decrease in sales compared to the same period last year, the difference is first reduced from the 30% range). In addition, Congressman Yong Hye-in of the Basic Income Party proposed an amendment to the Disaster Security Management Act, which imposes an obligation to reduce rent or exemption for commercial tenants under the Presidential Decree when suspend or restrict business due to infectious diseases, etc.

Legal experts said they agree on the need or purpose of introducing a rent break method. According to the Lease Protection Law revised in September, it was possible to request a temporary rent reduction, but the possibility of realization is very low. This is because there is no guarantee that the landlord will agree to the tenant’s request to reduce the rent, and even if the tenant did file a lawsuit, there is little real benefit considering cost or time.

▲ Additionally, members of the Democratic Party Ministry of Commerce, Industry and Energy Committee on Small and Medium Enterprises, Lee Seong-man Lee and Lee Dong-ju, held an 'Emergency Discussion for Corona 19 Fair Rent' at the National Assembly Hall in Yeouido, Seoul on the 29th. Photo = House of the Democratic Party with Lee Sung-man
▲ In addition, on the 29th, members of the Small and Medium Enterprises Committee of the Ministry of Commerce, Industry and Energy of the Democratic Party, Lee Dong-ju and Lee Seong-man, members of the National Assembly, held a ‘Debate of emergency on the Fair Rent of Corona 19 ‘. Photo = House of the Democratic Party with Lee Sung-man

Lawyer Changyoung Yang said: “It is not enough to provide compensation to tenants who are in a business crisis due to the Corona 19 pandemic. It can be seen that both rental income and business income from different origins and properties are necessary as a fair logic that it is fair to bear the burdens caused by social crises fairly. And it is desirable for the state to introduce the Fair Charge Charge Standard. “Attorney Yang said,” The rental suspension method should focus first on finding a suitable charging line for landlords and tenants. Also, the type of support that the landlord (including the tenant) can provide for the fair share of the social burden should be considered a separate matter. “

Han Sang-hee, professor at Konkuk University School of Law, said: “I fully agree with the purpose of the law to reduce rent in accordance with the damage caused by government measures in emergency countries, and I think it should be legal. ” “Rent reduction method, collective prohibition or restriction measures It was evaluated as a good way to ring the bell for the city to be reduced as a law in the sense that it can overcome the dynamics of the relationship. However, He warned, “if the unconstitutional review standards that the Constitutional Court has adopted so far are taken into account, they should be set in detail,” he advised. “Attention should be paid to specific and detailed areas so that the issue of equity in individual matters of the tenant and the tenant ”.

Democrats who organized the debate with one voice stressed the need to stop rents. Representative Lee Dong-joo said, “The meaning of ‘yield’ as defined in Civil Law is’ one party makes an agreement to allow the other party to use and benefit from the object, and the other party makes an agreement to pay the rent for this. ‘ It is an agreement to ‘use’ and ‘profit (profit)’ from the object, that is, the shopping center, and a difference between them. However, if the grouping ban is imposed, ‘use’ is impossible. ‘ Furthermore, “The damage caused by infectious disease prevention measures should not be transmitted only to small business owners and the self-employed. The landlord, financial institution, and government must share. That’s fair. “

Representative Lee Seong-man said, “The first priority is quarantine to defuse the national crisis, but we cannot ignore the pain of small businesses and let only some of the members of our society bear the pain. Now the principle is clear that the economic burden of quarantine cannot fall solely on tenants, and financial institutions, local governments and our people must come together, as the state is the center. The way to protect it should be used as an opportunity to prepare a more fundamental institutional and political foundation. “

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