"Lowering Rent and Providing Loans"... Jongno-gu Continues Wave of Win-Win Support for Small Business Owners

Tongin Market Disinfection

[Asia Economy Reporter Park Jong-il] Amid growing public anxiety due to COVID-19, Jongno-gu (District Mayor Kim Young-jong) is striving to devise measures to help merchants struggling with market stagnation.

The district first plans to implement the ‘First Half Small and Medium Enterprise Development Fund Loan Support’ for small and medium-sized businesses. This program offers loans up to 200 million KRW per company at a low interest rate of 1.5%, with a one-year grace period and a four-year repayment term.

To help increase sales for small business owners, Jongno-gu also issued 20 billion KRW worth of ‘Jongno Love Gift Certificates.’ Individual consumers can purchase these certificates with a 7% discount per person, up to a maximum of 500,000 KRW per month, with the purchase limit extended to 1 million KRW until April. During special sales periods such as the initial issuance or around holidays, an additional 3% discount is provided. Consumers benefit from purchasing gift certificates at a lower price and enjoy income tax deductions, while local small business owners are fully exempt from payment processing fees, creating a win-win effect.

Additionally, from the 13th to the 21st of last month, thorough disinfection was carried out at 27 traditional markets and shopping districts within the area, including Gwangjang Market and Tongin Market, which attract many domestic and international tourists. Masks, hand sanitizers, and prevention guideline posters were distributed.

The district is also promoting various measures to revitalize the local economy, such as ‘COVID-19 Special Fund Support’ and ‘COVID-19 Response Public Job Projects.’

As the COVID-19 situation prolongs and self-employed individuals face difficulties, landlords in traditional markets within Jongno-gu have extended helping hands, becoming a topic of interest.

Dongseung Co., Ltd., which manages Dongdaemun Comprehensive Market dealing in fabrics, clothing, and accessory materials, decided to reduce rent by 20% for about 4,300 stores for three months (equivalent to approximately 1.5 billion KRW). Likewise, Gwangjang Market Corporation also agreed to reduce rent by 20% for about 600 stores for three months (equivalent to approximately 360 million KRW).

As a result, many small merchants have reportedly been relieved of some of their worries.

At Tongin Market, the merchant association management fee, averaging 45,000 KRW per store, totaling 3.5 million KRW for one month, will be waived. Additionally, the lunchbox caf? operated by the Tongin Market village enterprise will return an extra 16 million KRW, equivalent to 2% of the yeopjeon (brass coin) revenue, to its 24 franchise stores over the past year.

This heartwarming news extends even to individual stores, adding warmth. A tenant running a restaurant in Insadong received a rent reduction of 4 million KRW, equivalent to one month’s rent, and shared that “despite the difficult situation, this has given me courage and hope.”

District Mayor Kim Young-jong stated, “We have consistently promoted a win-win agreement among the district office, landlords, and tenants to stabilize the commercial district. Moving forward, we will actively cooperate with the central government and Seoul City to help overcome the national crisis caused by COVID-19 and strive to revitalize the local economy.”

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