Reasons for Proposal
Although the damage caused by the coronavirus disaster continues to have an impact on the public, compensation and aid have been provided to a limited extent. The Framework Act on the Management of Disasters and the Infectious Disease Control and Prevention Act both contain provisions on compensation for losses, however, they are limited to those losses resulting from emergency measures, medical institutions and people who have been admitted to hospital for isolation, and disinfection of contaminated areas.
In other words, compensation for the loss caused by administrative orders banning and restricting gatherings issued by disease control authorities and aid for damage sustained by the people due to social distancing have not been institutionalized.
In the wake of the coronavirus disaster, it is necessary to legislate measures to compensate for the losses suffered by the people resulting from infectious diseases and provide aid for the damage they have sustained. In particular, since the social safety net is not satisfactory and contains many blind spots in Korea, it is difficult to properly deal with the loss and damage suffered by the people with the existing social safety measures. Therefore, it is necessary to institutionalize compensation and aid under the special act.
The Act aims to compensate for losses suffered by small business owners in the stage of disease control exceeding the gathering restriction and provide aid for the damage sustained by the people due to social distancing. Furthermore, it aims to specify necessary financing measures to improve the effectiveness of responses to the disasters caused by infectious diseases.
Details
A. The Act aims to compensate for the losses incurred and aid for damage sustained during the stages of infection control (Article 1).
B. Allow the State to compensate for losses incurred by small business owners, etc., subject to gathering ban and other restrictions to prevent infectious diseases, and aid for damage sustained by the people (Article 3).
C. In order to deliberate on matters in relation to the compensation for losses and aid for damage suffered in the stage of disease control, establish a council for loss compensation and damage relief for infectious diseases under the Prime Minister and the mayor or governor of each city or province (Article 4).
D. Impose the right to receive compensation for the loss caused by administrative orders, etc., upon small business owners subject to gathering ban and other restrictions (Article 6).
E. Enable small business owners, etc., subject to gathering ban and other restrictions to receive compensation for all or part of their fixed expenses (salary for employees, lease, utility bills, telecommunications expenses, and financial interest). In addition, enable small business owners, etc., subject to gathering bans to receive compensation for the amount within the lower limit of job search benefits to secure the guaranteed minimum income, and entitle small business owners subject to gathering restrictions to receive compensation if the need is recognized (Articles 6 through 12).
F. Despite the compensation for fixed costs and guaranteed minimum income, if the operating profit of the small business owner in the tax declaration for the current year does not reach 70% of his/her operating profit in the previous year, allow him/her to receive compensation so as to ensure that his/her operating profit falls within the above range during the stages of disease control (Article 13).
G. Enable the State to provide aid for damage suffered by the people in the stages of disease control (Article 14).
H. Apply the aid for damage to the employees of small business owners subject to gathering ban and other restrictions (Article 15), general small business owners, etc., whose sales have decreased by 30% of more (Article 16), subordinary workers, etc., whose incomes have decreased by 30% or more (Article 18), and those who sustain damage caused during their daily lives due to class modification, etc., aid for those with severe disabilities, childcare, and long-term care (Article 19).
I. Allow the State to pay universal emergency relief funds to provide aid for family budgets for the entire population against infectious diseases and the for purpose of boosting consumption (Article 20).
J. Require the State to strive to raise funds for compensation for losses and aid for damage, and allow the State to issue emergency relief bonds and raise special emergency relief funds (Articles 21 through 23).
J. Retroactively apply the compensation for losses under this Act from the stages of disease control (Article 2 of Addendum).
