Small business owners requesting “Limited Renter·Cash Support” Rent Stop Act

The government and the ruling party have promised cash support for self-employed and small business owners who are hit by Corona 19, but voices continue to say that a fundamental shopping mall rental fee reduction policy is needed. The Democratic Party lawmakers who initiated the so-called’rental suspension method’ held an emergency debate with small business owners and demanded’fair rent burden’. The discussion was held on the afternoon of the 29th with no 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 self-employed persons whose sales have declined as a result of the 3rd disaster support measure. Revealed. The intention is to relieve the burden of tenants who are restricted in business as the high-intensity social distancing for COVID-19 prevention is prolonged. The’Good Landlord Movement’ is also expanding, which provides tax credits to lessors who voluntarily lower their rent.

However, those who attended the debate on behalf of small business owners and self-employed people expressed regret in the approach of the government and the ruling party. “The support itself is welcome, but it is still not enough to relieve the damages of mid- to large-sized businesses,” said Bang Ki-hong, chairman of the Korean Federation of Small and Medium Business Owners. I don’t.” “If rent is provided in cash, like the second disaster support fund, there is a high possibility that it will not lead to economic revitalization. That is, it is not a countermeasure for prolonging the third pandemic.

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

Park Ji-ho, Secretary General of the Merchant’s Meeting (Mam Sang-mo), who wants to do business with ease, said, “In order for the support to be effective, it must be differentiated according to the rent situation of each tenant, and the rent is incurred on a monthly basis, so it must be made continuously until the administrative order is stopped. However, since the rents of millions of shopping malls 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 renters who are self-employed in their own buildings. It can be an income, and it is not very helpful to the tenant who pays rent of 5 million won or 10 million won.”

He also pointed out the limitations of the’good landlord movement’. Director Park said, “If a tenant is given autonomy and a business suspension or business restriction is recommended, no lessee will follow it. In other words, just as an administrative order was issued to 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 only a few who recognized that the landlord and the tenant have a win-win relationship.”

Director Park said, “Considering the reality that the effect is not great and the corona 19 may prolong, we need to change the method. Rather than a small number of dissenting opinions, it should be done effectively in the direction for the socially underprivileged,” he said. “The rental fee should be distributed to the interested parties of the shopping mall, such as tenants, landlords, and financial institutions, and the government should support the insufficient part with tax.” Insisted.

In the case of Chairman Bang, “Through the Rent Stop Act, we reduce the burden of rent for small business owners and self-employed people, provide emergency disaster support funds to small business owners and self-employed persons as compensation for damage, and additionally provide local love gift certificates to revitalize the economy like the first disaster support fund. “The only way to overcome the current situation is that the payment of universal disaster subsidies for the whole 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’Rent Stop Act’. △Moving Democratic Party Member’s Plan (Prohibits rental claims for renters subject to housekeeping in accordance with the Infectious Disease Prevention Act and guarantees the extension and delay of repayment of loans by the lessor) Proposal of Democratic Party Member Jun-Byeong Yoon (If business is restricted or suspended due to the prohibition of group restrictions according to the Infectious Disease Prevention Act, it is considered that the reason for the reduction of the rent has occurred) ‘In case of concreteization and a decrease of 30% or more in sales compared to the same period last year, the difference is first reduced from the range of 30%). In addition, Congressman Yong Hye-in of the Basic Income Party proposed an amendment to the Disaster Safety Management Act, which imposes an obligation to reduce rental fees for commercial renters under the Presidential Decree when business is suspended or restricted due to infectious diseases.

Legal experts said they agree with the necessity or purpose of introducing a rent-stop method. In accordance with the revised Lease Protection Act 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 lessor will accept the tenant’s request to reduce the rent, and even if the tenant filed a lawsuit, there is little real benefit considering the cost or period.

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

Attorney Changyoung Yang said, “It is not enough to provide compensation for tenants who are in business crisis due to the Corona 19 pandemic. It can be seen that both rental income and business income of 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 present a standard for fair burden of burden.” Attorney Yang said, “The rent halt law should focus first on finding an appropriate line of burden for landlords and tenants. In addition, what kind of support the lessor (including the tenant) can provide for the fair share of the social burden should be viewed as a distinct matter.”

Han Sang-hee, a professor at Konkuk University Law School, said, “I fully agree with the purpose of the law to reduce rent according to the damage caused by government measures in emergency countries, and think that it should be legal.” “Rent reduction method, collective prohibition or restriction measures It was evaluated as a good way to make the city chime to be reduced as a law in that it can overcome the dynamics of the relationship. However, he advised, “If you consider the standards for unconstitutional review that the Constitutional Court has taken so far, it should be set in detail.” .

Democrats who hosted the debate in one voice stressed the need to stop rents. Rep. Lee Dong-joo said, “The meaning of’lease’ as defined in the Civil Law is’a party makes an agreement to allow the other party to use and profit the object, and the other party makes an agreement to pay the rent for this.’ It is an agreement to’use’ and’profit (get profit)’ of the object, that is, the shopping mall, and a difference between them. However, if the ban on grouping is imposed, the’use’ is impossible.’ In addition, “The damage caused by infectious disease prevention measures should not be passed on to small business owners and self-employed persons only. The lessor, the financial institution, and the government must share. That’s fair.”

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

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