Gwangjin-gu Injects a Total of 35.6 Billion KRW Urgently to Revive Local Businesses Affected by COVID-19

Additional 32 Billion KRW Working Capital Loans Including Emergency Use of Old Contingency Funds...Close Support for Small Businesses with Opening of Corporate Difficulty Support Center and On-Site Issue Listening

[Asia Economy Reporter Park Jong-il] Gwangjin-gu (Mayor Kim Seon-gap) has taken proactive measures to alleviate difficulties by significantly expanding financial support amid the ongoing damage to small and medium-sized enterprises (SMEs) and small business owners caused by the spread of COVID-19.

According to a survey conducted by Gwangjin-gu on local commercial districts including traditional markets, food streets, and stores, sales revenue has decreased by more than half compared to before the COVID-19 outbreak, and the floating population in the surveyed areas has also dropped by more than half.

Accordingly, on the 3rd, the district held a meeting with heads of related organizations and groups to overcome COVID-19, listened to the difficulties of the local economy, and has been promoting ▲emergency operating funds support of 3.6 billion KRW ▲on-site close support teams for COVID-19 response ▲extension of payment deadlines for property taxes and deferral of tax audits.

◇Total Additional Support of 32 Billion KRW Including Emergency Use of District Reserve Funds

Fearing a prolonged economic downturn due to COVID-19, Gwangjin-gu urgently injected reserve funds, SME development funds, and food promotion funds to secure a total of 32 billion KRW in additional funds.

As a result, the district will provide a total of 35.6 billion KRW in support, including the existing emergency operating funds of 3.6 billion KRW.

The funds prepared this time for small business owners are offered at an annual interest rate of 1.5% to 2.82%, which is lower than that of general financial institutions, with a condition of a one-year grace period followed by equal installment repayments over three years.

The loan limit per company is up to 300 million KRW from the SME development fund, 100 million KRW for youth startups, and 50 million KRW for micro small business owners. For small business owners who have already received policy fund loans, repayment deferrals and interest reductions are also supported.

In addition, in cooperation with the Korea Inclusive Finance Agency, the small loan support limits for traditional market merchants will be increased by 100 million to 300 million KRW per market to ensure timely financial support.

◇Establishment of Corporate Difficulty Support Center for Close Support to Small Business Owners

The district expanded and reorganized the existing ‘COVID-19 Response On-site Close Support Team’ and opened the ‘Corporate Difficulty Support Center’ on the 3rd floor of KCC Welts Tower within the district office’s Local Economy Division.

The Corporate Difficulty Support Center is composed of three teams ? Financial Support Team, Price Management Team, and Goods Support Team ? led by the head of the Local Economy Division. It conducts on-site inspections including ▲monitoring the sales decline status of small business owners ▲receiving requests for preventive supplies support ▲checking hoarding and price gouging of quarantine supplies.

It also receives corporate difficulties and provides professional consultations in legal, labor, and tax matters through cooperation with experts such as village tax accountants and lawyers.

Furthermore, on the 14th, Gwangjin-gu held a ‘Local Business and Small Business Support Measures Meeting’ at the district office’s Planning Situation Room, attended by executives and officials from 19 related organizations including the Gwangjin-gu Chamber of Commerce and Industry and Seongdong Tax Office.

At this meeting, the district explained the support measures for SMEs and small business owners it is implementing and held discussions on difficulties and ways to revitalize the local commercial districts.

Gwangjin-gu Mayor Kim Seon-gap stated, “The contraction of consumer sentiment caused by COVID-19 must be overcome, and we will do our best to revitalize the local commercial districts and traditional markets by thoroughly maintaining quarantine measures and mobilizing all administrative capabilities based on this.”

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