Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance put a brake on the self-employment loss compensation system, which was speeding up by the ruling party. On the 22nd, he posted a post on Facebook saying, “Financial is not hwasoobun”.
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.’
Prime Minister Jeong Sye-gyun (right) and Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance are attending a State Council meeting held at the Seoul Sejongno Government Complex on the 19th. News 1
Deputy Prime Minister Hong also agreed that there is a need for a support system for self-employed people who have suffered damage from the novel coronavirus infection (Corona 19) and the government’s business restrictions. “We will consider and review in-depth ways to institutionalize business restriction loss compensation,” he said. “We will actively discuss the most rational institutionalization plan for the self-employed, small business owners, etc. I will collect wisdom.”
The problem is financing. Deputy Prime Minister Hong said, “Because fiscal is not a matter of fire, fiscal situation and financial resources are also important policy variables to consider. The issuance of deficit government bonds is expected to exceed 104 trillion won last year, 93 trillion won this year, and 100 trillion won next year. The total debt is expected to exceed 1,000 trillion won for the first time next year.”
“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,” he said. “Excessive national debt is a burden on our children’s generation, and for the future, if possible, we have a little financial capacity. Accumulating even at least is an issue that we must keep in mind now,” said Hong emphasized.
Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance. Facebook capture
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 any case, we will inform the financial authorities of the difficulties and limitations in relation to the legislative institutionalization as they are and make efforts to coordinate them as much as possible.”
As Deputy Prime Minister Hong, the responsible minister, emphasized the fiscal burden, the self-employment loss compensation system, which was accelerated mainly by the ruling Democratic Party, came into a new phase.
Until the 21st, the day before, 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.
Self-employed loss compensation system, how much will it cost? Graphic = Reporter Kim Young-ok [email protected]
Then, Prime Minister Chung rebelled fiercely, saying, “Is this country the country of the Ministry of the Ministry of Science and Technology?” 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. In response, Vice Minister Kim seemed to end the controversy, saying, “I will examine the institutionalization plan in detail and engage in the discussion of the National Assembly.”
In one day, the head of the Ministry of Information and Communication took the’break’ again, saying, “I will inform and adjust the difficulties and limitations” due to the financial burden of Deputy Prime Minister Hong.
Currently, there are about 10 bills related to self-employment loss compensation system in Yeo and Night. 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).
Self-employed loss compensation system, compared to other budgets. Graphic = Reporter Kim Young-ok [email protected]
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 annually.
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 income and sales, but only legalization is in a hurry.” Professor Seong said, “After that, the budget and financial problems could be big.”
Sejong = Reporter Cho Hyun-sook [email protected]