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Discussions about institutionalizing loss compensation for small business owners and freelancers who have been harmed by the new coronavirus infection (Corona 19) are increasing rapidly. Related ministries such as the Ministry of Strategy and Finance and the Ministry of Health and Welfare are expected to start discussions sooner or later, focusing on the Department of Small and Medium-sized Enterprises. However, since it is the first system to be implemented, the process of determining beneficiary objectives, the level of compensation, and the compliance system will not be easy. Although the Ministry of Information and Infrastructure expresses confusion over the fiscal deterioration, SMEs are in an onerous position to lead the promotion of the new system with the minister vacant.
◆ 文 Direct instructions. The problem is “budget” = President Moon Jae-in directly ordered the government to review the institutionalization of compensation for losses on the 25th, and the relevant ministries are expected to initiate large-scale consultations. President Moon ordered a cross-party review on the promotion of the loss compensation system at the office of the Ministry of Welfare, Food and Drug Administration and the Disease Management Administration that was held at the Blue House that afternoon. President Moon said: “I hope that the SME Ministry and other relevant ministries and the party government will also review a plan to institutionalize compensation for losses within a certain range that can be assumed by finance for small business owners and the self-employed. whose business is restricted or prohibited by government quarantine measures.
The biggest problem is the “budget”. That is why President Moon mentioned “the extent to which finance can afford it.” Last year, we are facing an era of 1,000 trillion won in national debt as the country’s debt increases due to the execution of four additional budgets (additional budget) to respond to Corona 19. The Ministry of Science and Technology is expressing difficulties due to financial burden. It is interpreted that on the 24th, the vice premier and minister of equipment, Hong Nam-ki, did not participate in the meeting of the party administration to discuss the compensation system for losses due to a cold sore.
◆ Medium-term department without head “Consultation with the Ministry of Finance” = It is also burdensome for medium-term departments whose current minister is vacant. Above all, the cooperation of the Ministry of Finance, which is the financial authority, is a prerequisite. The Ministry of SMEs and Industry proposed a principled position to prepare through consultation with related ministries. “We are also preparing for this stage,” said Kang Seong-cheon, deputy minister of the Ministry of Commerce, Industry and Energy. Jo Joo-hyun, head of the Small Business Policy Division of the Small and Medium Business Administration, said: “We are conducting a multilateral review,” he said. “It is a step to seek opinions through consultation with relevant ministries such as the Ministry of Finance.”
Another SME official said: “We are expected to consider the content of topics as the topic of reporting the minimum income of small business owners, but we will discuss the methodology through communication with the Ministry of Finance for the scope and details of support “. “He said:” In the process of providing support funds for small business owners, other ministries and local governments were also involved in the discussions, “he said.” There will be a lot to review and discuss. “Compensation for losses does not just require huge finance, but also requires careful decisions on each issue, as it is always institutionalized.
◆ Political circles take a quick step. “Damage Compensation with Expanded Financing” = Meanwhile, in politics, Corona 19 damage is highlighted and promotion of the institutionalization of loss compensation is accelerated. In the data for the 25th, Lee Dong-ju, a member of the Democratic Party, said: “Sales by small business owners and freelancers who were banned from meeting and trade restrictions were found to have decreased to by 42% from 2019. According to the results of Lee’s analysis of data on Korea’s credit data, the sectors that suffered the most damage in sales last year were entertainment pubs and singing practice areas, which are management intensive sectors based on government quarantine guidelines Last year, sales of entertainment bars and singing practice areas decreased by 42.1% and 41.1%, respectively, compared to year-on-year The next big drop in sales were arcades and multiple halls, which posted a 40.9% decrease in sales over the previous year.
Congressman Lee emphasized: “We need to push the discussion on calculating the amount of damage and the scope of compensation under Corona 19.” He added: “The amount of damage by various types of industries and sizes is expected to show a big difference,” he said. “It has been urgently supporting the toughest commercial operators with disaster grants so far, but now is the time for the country to make substantial damage compensation through increased funding.”
Reporter Kim Bo-kyung [email protected] Reporter Kim Hee-yoon [email protected]
