Due to the spread of COVID-19, the central and local governments recommend or order business hours or type of business restrictions and business suspension for private self-employed stores where the infectious disease may spread pursuant to the Infectious Disease Control and Prevention Act.

As the current Act does not clearly state business suspension, however, it has been pointed out that administrative orders issued by local governments are against the law.

Meanwhile, benefits from preventing any infectious disease can be enjoyed by anyone, and it is also in the interests of the public as such benefits cannot be reduced. Nonetheless, the cost of preventing infectious disease including losses incurred as a result of business suspension is borne by self-employed people. As the current Act has no provision to compensate for losses in private self-employed stores, financial losses suffered by self-employed people due to COVID-19 are enormous.

In this regard, this Act aims to clarify the legal basis for business suspension or type of business or business hour restrictions for private self-employed stores while compensating for losses if there is business suspension due to administrative orders based on the foregoing and including losses for fixed expenses such as rent during the business suspension period (Article 49 paragraph 1 subparagraph 2-5, Article 70 paragraph 1).

Allow for ordering business suspension for places or facilities where there is a risk of spreading any infectious disease or restrictions on the type of business or business hours (Article 49 paragraph 1 subparagraph 2-5).