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SEOUL, Nov. 10 (Korea Bizwire) — A Seoul court has rejected a lawsuit filed by hundreds of gym owners seeking compensation from the government for business losses suffered under COVID-19 restrictions, ruling that the measures did not violate their property or equality rights.
The Seoul Central District Court last month dismissed a damages suit brought by 268 fitness center operators against the state and local governments, according to legal sources Friday.
The plaintiffs argued that the government’s temporary shutdown orders during the pandemic infringed on their constitutional rights and caused significant financial harm.
The court, however, found that the restrictions did not amount to an unlawful deprivation of property.
“Although the plaintiffs’ profits decreased due to the bans on gatherings, they were not specifically deprived of their ability to use or profit from their facilities and equipment,” the court said. “Therefore, it cannot be regarded as an infringement of property rights.”
A gym in Seoul is closed on Feb. 14, 2021, after a series of coronavirus infections was reported at the facility. (Yonhap)
The judges also rejected the argument that the lack of prearranged compensation for pandemic losses violated the principle of equality, noting that the government had offered various support measures such as subsidies and compensation programs for small business owners.
“The pandemic was marked by scientific uncertainty and rapidly changing conditions, requiring urgent and preventive action,” the ruling stated. “Considering the public interest at stake, the restrictions on business operations cannot be deemed excessive.”
The case was one of several nationwide lawsuits filed by small business owners — including restaurant, bar and gym operators — who sought compensation for losses incurred during the government’s social distancing and shutdown measures imposed at the height of the pandemic.
Jerry M. Kim (jerry_kim@koreabizwire.com)
