Dongdaemun-gu's 'Good Rent Reduction Relay Campaign' Continues~~~

Rent Reduction: Landlords to Deduct 50% of Reduction Amount from First Half Income Tax or Corporate Tax... Gyeongdong Market Leads Rent Reduction Effort... District Mayor You Deok-yeol Joins Support via SNS

Yoo Deok-yeol, the mayor of Dongdaemun District, launched a campaign supporting the Good Rent Movement through the social networking service (SNS) Facebook on the 4th.

[Asia Economy Reporter Park Jong-il] Dongdaemun-gu (Mayor Yoo Deok-yeol) is launching a "Good Rent Reduction Relay Campaign" to support the recovery of the livelihood economy, which has been hit by COVID-19.

"Good rent" refers to landlords temporarily reducing rent during the first half of the year to ease the dual burden of decreased sales and rent costs faced by small business tenants due to COVID-19.

In Dongdaemun-gu, Kyungdong Market took the lead as the first participant in the good rent reduction campaign on February 26. Dongdaemun-gu, Kyungdong Market, and the Kyungdong Market Merchants Association signed a local win-win agreement and decided to reduce store rents by 20% from March to May.

As a result, 748 tenant stores in Kyungdong Market will save a total of about 270 million KRW in rent over three months.

The district will continue to provide various supports to encourage participation in the good rent reduction relay campaign.

Currently, the Restriction of Special Taxation Act is being partially amended to support small business owners suffering from worsening management due to the livelihood economy recovery. Once amended, landlords who reduce rent will be able to receive a tax credit of 50% of the reduced amount on income tax or corporate tax for the first half of the year (January to June).

Additionally, the Enforcement Decree of the Act on the Management of Public Property and Goods is also being revised, and from April, small business tenants in buildings owned by Dongdaemun-gu are expected to benefit from rent reductions.

Efforts will also focus on promotional activities. To this end, promotional banners will be hung in about 30 major streets in the area, and notices requesting participation in the good rent campaign will be distributed to small business-related organizations such as 20 traditional markets, the Korea Foodservice Industry Association (Dongdaemun Branch), the Eastern Education Development Council (Dongdaemun Branch), and landlords.

Mayor Yoo Deok-yeol of Dongdaemun-gu is also running a support campaign for the good rent movement through social networking service (SNS) Facebook. On Facebook, Mayor Yoo mentioned the Kyungdong Market rent reduction agreement, saying, "The COVID-19 crisis has deepened the worries of neighbors such as small business owners and self-employed people. Many are having a hard time due to store rents and other costs. Amid this, landlords who voluntarily reduce rents are being praised as heartwarming examples."

He added, "I believe there are more people like this around us. By joining forces little by little, it will become a great driving force to overcome COVID-19. I thank all landlords participating in the good rent campaign. I hope the good rent movement spreads widely and support it wholeheartedly."

Dongdaemun-gu-Gyeongdong Gijang Fair Rent Agreement Ceremony

The district is providing emergency funds at a low interest rate of 2%, up to 200 million KRW per company, to local small and medium-sized enterprises and small business owners. It is also extending the reporting and payment deadlines for tax items such as acquisition tax and local income tax by up to six months for businesses facing difficulties due to closures caused by visits from confirmed COVID-19 cases.

Since February 21, to help small business owners, the district office cafeteria has been closed every Friday to actively encourage the use of traditional markets and alleyway restaurants.

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