Hong Nam-ki “Is finances in fire and water?” Self-employed’loss compensation system’ break

On the 22nd, Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance again rebelled against the legislation of the loss compensation system for self-employed victims of the new coronavirus infection (Corona 19), which the party and the government are strongly promoting. Deputy Prime Minister Hong told Facebook on the same day that “we will actively discuss and gather wisdom between ministries, party and government,” regarding the institutionalization plan for loss compensation. “Financial situation and financial conditions are among the important policy variables to be considered as the fiscal situation is not a matter of fire. You should always remember that it is one.”

It was a rebuttal from the criticism of ruling party lawmakers for being passive about fiscal expenditures, especially on the previous day (21st), when Prime Minister Jeong Sye-gyun also criticized “Is this country the country of the Ministry of Information and Technology.” The 22nd is also the day when the Democratic Party of the Republic of Korea gathered opinions at the Supreme Council’s meeting to promote the legislation of the loss compensation system within this year.

Deputy Prime Minister Hong said, “Regarding the issue of legislative institutionalization for compensation for loss from business restrictions, some lawmakers have already proposed draft legislation, and the Ministry of Information and Transportation is conducting internal inspections because it is necessary to respond in any form.” He wrote, “There was a lot of things to point out because it was a’road that I haven’t been to.’

In fact, the country’s finances aren’t easy. In addition to the super budget of over 500 trillion last year, the government debt increased by 147.3 trillion won, showing the largest increase in history. This year, it also created a budget of 558 trillion won to recover from Corona 19 damage. Deputy Prime Minister Hong explained, “The issuance of deficit government bonds is expected to exceed about 104 trillion won last year, about 93 trillion won this year, and 100 trillion won next year, and the total national debt is expected to exceed 1,000 trillion won for the first time next year.” Deputy Prime Minister Hong also said, “We can never neglect the views of foreign investors and national credit rating agencies that are watching the pace of the increase in national debt. Accumulating even a little extra is an issue that we should keep in mind now.”

Deputy Prime Minister Hong also made it clear that he would reflect the position of the fiscal authorities in the legislative process for reasons of the difficult financial situation. “We will review it in the direction of providing assistance as much as possible, but in case of any difficulties or limitations as the fiscal authority in relation to legislative institutionalization, we will inform you as it is and make efforts to coordinate it.”

Until the 21st, the registration department was pressed by the momentum of the passport. Regarding Prime Minister Chung Sye-gyun’s “If possible, we will ensure that legislation will be implemented by the first half of the year,” said Kim Yong-beom, the 1st Vice Minister of the Ministry of Science, “It is difficult to find a country that has legalized (self-employed loss compensation system) abroad. I expressed a warm color. Then Prime Minister Chung urged him to say, “Is this country the country of the Ministry of Information and Technology,” and “The Ministry of Information is a resistance force.” At a meeting of the Central Disaster and Safety Countermeasures Headquarters on the 21st, Prime Minister Chung even ordered the Ministry of Information and Communications to consider legalization altogether. Accordingly, Vice Minister Kim seemed to end the controversy, saying, “I will examine the institutionalization plan in detail and engage in the discussions of the National Assembly.” However, within a day, Deputy Prime Minister Hong, head of the Ministry of Equipment, said, “I will inform and adjust the difficult parts and limitations” because of the financial burden and put a’break’ again.

There was no official response from Prime Minister Chung or the Democratic Party to Hong’s writing. An official from the Prime Minister’s Office also said, “If you look at the entire context of the article, is it that Deputy Prime Minister Hong will eventually become institutionalized. I don’t care too much.” However, the inside of the ruling party was very uncomfortable with stimulating expressions such as “Financial finance is not anger and water.” Hwasubun means a treasure complex in a story where riches are endlessly appearing, and as Deputy Prime Minister Hong repeats this expression in the sense that’Naraddon cannot be used indefinitely’, the atmosphere is sparkling inside the Democratic Party. Spokesman Heo Young also spoke with the JoongAng Ilbo on the same day, saying, “The loss compensation system is being legislated with sympathy from the President, Prime Minister, ruling party, and opposition parties. said.

Lawmakers who have issued or are planning to initiate a loss compensation bill have also criticized it. Democratic Party Rep. Min Byeong-deok, who gave a press conference on the loss compensation legislation at the National Assembly on that day, refuted after the conference that it is not a boon but the duty of the state to do this (compensation for losses) within the limits of the government’s finances in relation to the remarks of Hwa Soo-bun of Deputy Prime Minister Hong.

Representative Lee Nak-yeon and Lee Jae-myung, governor of Gyeonggi Province were also similar. Honam District Rep. Daseon, who is close to CEO Lee, said, “Everyone is trying to compensate for losses because it is very difficult due to the corona, but not because the government has sufficient financial resources to promote it. Small businessmen are on the verge of passing their breath, and Deputy Prime Minister Hong is unable to make a thoughtful judgment.” One of the first members of the metropolitan area close to Governor Lee also said, “The Ministry of Information and Infrastructure continues to talk about saving the national finances as if they were the only ones thinking of them. The whole world is in the process of expanding fiscal measures to respond to the coronavirus, but only our Ministry of Equipment is out of date.”

Currently, the ruling and opposition parties have proposed nearly 10 laws related to self-employment loss compensation. According to the proposal proposed by Democratic Party lawmaker Min Byeong-deok, compensation from 50% of lost sales (general business) to up to 70% (non-collective business) will cost 98 trillion won in four months. It is half of this year’s health, welfare, and employment budget (19.97 trillion won). Democratic Party lawmaker Kang Hoon-sik has proposed a bill that supports 20% of the minimum wage and rent, which also costs 1.23 trillion won per month and 14,844 trillion won per year.

Deputy Prime Minister Hong put the brakes on, but it is unlikely that the ruling party will cover the legislative process itself ahead of the re-election of local government heads in April. In the end, the key is how much the fiscal authorities’ demand will be reflected. Seong Tae-yoon, professor of economics at Yonsei University, said, “In the case of self-employment subsidies, it is appropriate to provide them quickly and flexibly depending on the situation, but there is a high risk of being stiff in the legalization process to avoid illegal situations. He pointed out that the priority is to grasp the income and sales, but the legalization alone is in a hurry.”

Sejong = Reporter Cho Hyun-sook and Kim Nam-jun, reporter Kim Jun-young [email protected]