Gwangju City Announces Comprehensive Measures for Local Economy Amid Coronavirus Pandemic

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 12th that it will prepare and implement a ‘Comprehensive Local Economic Measures Due to Coronavirus’ to support local small business owners and small and medium-sized enterprises (SMEs) struggling due to the novel coronavirus.

This comprehensive plan includes practical support measures based on suggestions from the industry made during the on-site meeting of economic organizations and groups held at the Gwangju Chamber of Commerce and Industry on the 10th.

The measures are composed of ▲ support for small business owners ▲ corporate support ▲ distribution management ▲ consumption promotion ▲ other support to respond to and support the local economy’s recession and shrinking consumer sentiment caused by COVID-19.

First, to support small business owners, the special guarantee for neighborhood markets will be expanded.

The special guarantee to be supported this year is 43.2 billion KRW, an increase of 9.2 billion KRW compared to 34 billion KRW last year. Support is provided up to 25 million KRW per company, and interest of 2.5% is compensated for one year, resulting in an effective loan interest rate of around 0.5%.

Last year’s structural improvement fund for small distribution businesses, which was implemented on April 15, will be implemented earlier this year from the 14th.

The microfinance loan scale for small merchants in traditional markets struggling due to a sharp drop in sales will also be expanded to 55 billion KRW, an increase of 5 billion KRW from last year, and the special discount on electricity bills for traditional markets will be extended until June. The monthly discount rate is 5.9%.

In the corporate support sector, special guarantee support for companies affected by the coronavirus will be expanded. The target of the special guarantee will be expanded from existing automobile parts companies to affected companies, guaranteeing up to 300 million KRW per company with a total guarantee of 30 billion KRW.

2.3 trillion KRW will be provided as management stabilization funds and structural advancement funds for SMEs in manufacturing, manufacturing-related services, and knowledge industry center construction companies, and 3 billion KRW of export promotion funds will be provided as early loans.

Additionally, the Economic Employment Promotion Agency will operate a ‘CV Support System Comprehensive One Stop Center’ to comprehensively guide various COVID-19 related support policies from government ministries, local governments, and economic related organizations, and provide one-stop support for receiving damage cases from companies and preparing corporate support measures.

To stabilize prices, joint inspections with the government will be conducted on hoarding of health masks, focusing on whether the stock quantity in the last five days from the investigation date exceeds 150% of the average monthly sales volume last year.

Furthermore, tax administration support such as extension of reporting and payment deadlines within six months, postponement of notification, collection, and delinquency disposition will be promptly implemented to the maximum extent for small business owners, self-employed, and SMEs expected to face difficulties due to the coronavirus situation.

The measures also include rapid execution of budgets related to local economic revitalization in the first half of the year, expansion of budgets to support infection prevention and spread control, and active use of disaster management funds and other related funds to prevent spread.

Earlier, to support the food service industry, Gwangju City suspended operation of the city hall cafeteria from today until the 18th, and launched a campaign to buy flowers on Family Love Day (every Wednesday) and to give flowers on birthdays and other anniversaries to support flower farmers and sellers facing difficulties due to canceled or reduced school graduation ceremonies.

Mayor Lee Yong-seop said, “Let us overcome the local economy weakened by the novel coronavirus infection by pooling all capabilities of the central government, Gwangju City, and related organizations,” and added, “This comprehensive local economic measure will breathe new life into the difficult local economy and serve as an opportunity to stimulate consumption.”

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