Songpa-gu Supports Local Economy Hit by COVID-19... Rapid Execution of 100 Billion KRW

Average Daily Sales per Store Decrease by Over 50%... Local Tax Payment Deferral, Low-Interest Loans for Affected Businesses and Small Merchants Support, etc.

[Asia Economy Reporter Park Jong-il] Songpa-gu (Mayor Park Seong-su) announced on the 12th that it has formed a ‘Local Economy Support Task Force’ and is promoting the rapid execution of 100 billion KRW in local finances in response to the contraction of consumer sentiment and economic recession caused by the spread of the novel coronavirus infection (COVID-19).

In fact, a field survey conducted by Songpa-gu revealed that the average daily sales per store decreased by more than 50% due to the spread of COVID-19. Songpa-gu explained that while the management foundation is weakening, there is also a decline in management motivation.

Accordingly, Songpa-gu, led by the Deputy Mayor as the head of the task force, has united five departments to present response measures in five areas: △job and business support △small business support and fair economy △rapid execution of public finances △tax support △local tourism, and will implement these measures promptly.

The task force will operate until the COVID-19 situation is resolved.

Songpa-gu plans to support necessary policies for each of the three stages: the peak of COVID-19 spread, the lull period, and post-termination.

First, considering the sharp decrease in floating population due to the cancellation of various festivals and events, which has damaged the local economy, public finances that will serve as a catalyst for revitalizing the local economy will be executed rapidly. Approximately 126.4 billion KRW of the budget for projects that can enhance economic vitality will be executed in the first half of the year.

Additionally, about 61.2 billion KRW will be spent on consumption investment projects such as labor costs, public operation expenses, facility costs, asset and goods acquisition costs.

Moreover, if necessary, disaster management funds will be used, and external resources such as special grants and subsidies by department will be actively secured and utilized.

For direct and indirect victims or affected companies due to visits by confirmed COVID-19 patients, tax support measures such as extending the filing and payment deadlines for various taxes by up to one year and deferring collection will also be provided.

A COVID-19 Damage Business Reporting Center will be operated to comprehensively grasp the damage situation, and a total of 19.7 billion KRW in loan funds, including small business financing and special credit guarantee funds, will be provided to affected small and medium-sized enterprises and small business owners at interest rates of 1.5% to 2.9%. If the 19.7 billion KRW is exhausted early, an additional 5 billion KRW will be secured and supported.

In particular, for affected companies, guarantee fees will be reduced by up to 50%, and interest subsidies partially covering bank interest will be expanded. For small business owners without collateral, loans will be supported through special credit guarantee recommendations.

Also, professionally qualified ‘Village Management Advisors’ and ‘Visiting Small Business Hope Planners’ will visit victims or affected companies to provide consulting and actively guide them to government support projects and the district office, ensuring they do not miss out on various support programs for damages.

Furthermore, △the number of Zero Pay affiliated stores will be actively increased to ease card fees for small business owners, and △projects to revitalize neighborhood commercial districts, such as temporary suspension of parking enforcement around restaurants, traditional markets, and shopping districts, will be actively promoted.

Songpa-gu plans to thoroughly prepare in advance for the resumption of various local festivals in anticipation of the end of the COVID-19 spread. It added that it will respond swiftly to restore the local economy to its original state as quickly as possible.

Park Seong-su, Mayor of Songpa-gu, said, “It is time for public officials and residents to come together with one heart and wisdom to overcome this crisis,” and “We will make every effort in various ways to minimize the damage to the local economy caused by the novel coronavirus infection.”

In fact, on the afternoon of the 10th, Mayor Park had lunch with district office staff at a Kalguksu (hand-cut noodle soup) restaurant in Garak-dong, which was visited by the 19th confirmed COVID-19 patient.

Afterwards, he visited a bakery and a chicken restaurant that the same confirmed patient had visited and purchased snacks, actively helping small business owners.

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