2024-07-15 10:10:22
A court ruled that the government does not need to compensate business owners for losses incurred due to the government’s ban on gatherings during the spread of the novel coronavirus (COVID-19).
According to the legal community on the 15th, the 2nd Administrative Division of the Seoul Administrative Court (Presiding Judge Koh Eun-seol) ruled in favor of the plaintiff in a lawsuit for compensation for damages filed by Mr. A, who was running a soap store at Gwangmyeong KTX Station, against the state.
In March 2020, when COVID-19 was spreading, Korea Railroad Corporation (KORAIL) closed certain areas of Gwangmyeong Station in accordance with the government’s ban on gatherings. Mr. A’s business, located in the closed area, was also restricted from public access. Mr. A eventually closed his business in March 2022 and later filed an administrative lawsuit against the government, seeking 100 million won in compensation for losses.
Person A argued that the state should compensate for the loss according to the constitutional provision that “just compensation must be paid for the expropriation, use or restriction of property rights for public necessity.” However, the court ruled that the loss was not subject to compensation by the state based on the constitutional provision that “the exercise of property rights must be suitable for the public welfare.” The court ruled that “the ban on gatherings is not intended to deprive or reduce the business rights of the facilities or business entities subject to it, but is a necessary measure to achieve the public interest goal of preventing infectious diseases,” and “the resulting contraction and restriction of the business entities’ economic activities is close to a social restriction.”
Reporter Kim Ja-hyeon [email protected]
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2024-07-15 10:10:22