Jongno-gu Takes Initiative to Revive Local Economy Weakened by New Coronavirus

Providing 1.5% Low-Interest Loans to SMEs Struggling with Financial Difficulties...Caregiver Training Offering Employment Opportunities to Middle-Aged Job Seekers...Issuing 20 Billion Won in Mobile Local Currency Jongno Sarang Gift Certificates to Boost Small Business Sales...Jongno Youth Forest Market Supporting Young Entrepreneurs at Jonggak Station's Idle Space with Over 90,000 Daily Users Starting February

'Jongno Youth Forest,' operated since 2017 to support market access for young entrepreneurs

[Asia Economy Reporter Park Jong-il] Amid growing public anxiety due to the novel coronavirus and concerns about an economic downturn, Jongno-gu (District Mayor Kim Young-jong) has taken active steps to revitalize the local economy, drawing attention.

First, the district is implementing the '2020 First Half Small and Medium Enterprise Development Fund Loan Support' to help alleviate financial difficulties and stabilize the management of small and medium-sized businesses in the area suffering from market stagnation.

The support fund totals 1.5 billion KRW, and applications are accepted through the District Office's Job and Economy Division until the 14th. To invigorate the local economy and carefully address the difficulties faced by small and medium-sized businesses, loans of up to 200 million KRW per company, within 30% of the previous year's sales, will be provided at low interest rates. Applications are accepted only for purposes such as facility and operating funds, and technology development funds, with a loan interest rate of 1.5%, a one-year grace period, and equal installment repayments over four years.

Next, based on expertise in elderly care, the district offers free 'Caregiver Training' to provide reemployment opportunities for middle-aged and older adults and meet the demand in elderly welfare due to population aging, recruiting participants.

The target group is Jongno-gu residents aged 40 to 69, with preference given to those registered as job seekers for the caregiver position at the Job Plus Center.

Applications are accepted from the 3rd to the 21st through the Jongno Job Plus Center, with selection through a first-round document screening and a second-round interview.

The training will be held in March and April at the Jongno Caregiver Training Center (3rd floor, 97 Sajik-ro), covering caregiver introduction, related systems and services, field know-how, certification acquisition content, and overall work-related matters.

The district has also thoughtfully arranged special lectures before the caregiver certification exam after the training.

Furthermore, the district is dedicated to helping increase sales for small business owners by issuing 20 billion KRW worth of the mobile local currency 'Jongno Love Gift Certificates,' usable at over 8,000 Zero Pay affiliated stores in the area, since January 17.

The Jongno Love Gift Certificates are issued only in mobile form in denominations of 10,000 KRW, 50,000 KRW, and 100,000 KRW, and can be purchased, used, or gifted via dedicated applications such as CheckPay, MoneyTree, BizPlay, and NongHyup All One Bank.

To this end, the district signed an agreement with the sales agency 'Korea Easy Payment Promotion Agency' on January 6, marking the first such partnership in Seoul.

Individual consumers receive a 7% discount per person and can purchase up to 500,000 KRW per month at a discount. During special sales periods such as the initial issuance or around holidays, an additional 3% discount is applied. Consumers can purchase gift certificates at a total 10% discount and enjoy income tax deduction benefits, while local small business owners are expected to benefit from a complete waiver of payment processing fees, creating a win-win effect.

The 'Jongno Youth Forest Project,' a youth complex cultural market supporting young entrepreneurs' sales channels, has been operating regularly since February at Taeyang Garden near Jonggak Station.

The district created a sales space in the idle area of the public underground walkway at Jonggak Station, which has over 90,000 daily visitors, for young entrepreneurs in the handicraft sector who struggle to find stores due to high rent. The location's characteristics, with many institutions and companies concentrated and a high purchasing power along with many tourists and passersby, are actively utilized.

Since its inception in 2017, Jongno Youth Forest has gained attention not only for market operations but also for substantial entrepreneurship capacity-building education, including marketing, taxation, product presentation, and sales strategy mentoring, attracting young entrepreneurs and social enterprises.

Additionally, to discover and support continuously growing young entrepreneurs, the district opened the Jongno Youth Startup Center (5th floor, Naeil Building, 3 Saemunan-ro 3-gil) and held a commemorative event on the 20th. The center, consisting of offices for resident companies, open startup spaces for one-person companies and prospective entrepreneurs, and meeting rooms, allows use of facilities for one year upon payment of a nominal residency fee.

The 'Living Commercial Area Revitalization Project' in Changsin-dong, selected through a Seoul city public contest, is also noteworthy. Living commercial areas aim to enhance the competitiveness of shopping districts so that residents' consumption and leisure activities can take place within the local commercial area, thereby revitalizing the economy through local consumption.

The district formed the 'Changsin Living Commercial Area Revitalization Promotion Committee,' a consultative body of merchants, residents, and local organizations, to motivate residents to visit neighborhood stores and open a 'Community Store' in April to serve as a local community hub.

In the same month, the district plans to discover and promote 'Handmade Stores' that use domestic agricultural products as main ingredients, flavor food with natural seasonings, and have owners who make products themselves. This will later expand to items such as handmade accessories, clothing, and furniture.

Kim Young-jong, Mayor of Jongno-gu, stated, "Due to the novel coronavirus, consumer sentiment is expected to shrink, causing difficulties in the local economy. Therefore, we have launched various related projects to minimize residents' damage and overcome the crisis together with local small business owners." He added, "We will actively cooperate with the government and Seoul city to overcome the crisis and provide generous administrative support to revitalize the local economy."

This content was produced with the assistance of AI translation services.