Gwangju Gwangsan-gu's Efforts to Revitalize the Economy Amid the COVID-19 Crisis Draw Attention

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Amid ongoing concerns from various sectors of society about the stagnated local economy due to COVID-19, the steady efforts to revitalize the economy in Gwangsan District, Gwangju Metropolitan City, are drawing attention.

On the 19th, according to Gwangsan District (District Mayor Kim Samho), as soon as the COVID-19 outbreak occurred, they first operated the ‘Corporate Damage Response Support Team’ to monitor the overall economic situation by investigating damages to small and medium-sized enterprises (SMEs) and small business owners, focusing on minimizing damage to the local economy.

In mid-this month, the ‘Emergency Economic Situation Room’ was launched to devise specific economic measures divided into four sectors: small business owners, jobs, enterprises, and cultural tourism, aiming for local economic recovery.

From the 11th to the 15th, a ‘Self-Employed Centered Commercial District Sales Perception Survey’ was conducted targeting about 1,200 people, approximately 10% of all self-employed and freelancers.

Based on responses to the question about ‘Requests to the Government and Local Governments,’ the Emergency Economic Situation Room is preparing a comprehensive economic revitalization plan and will promptly implement policies to support neighborhood commercial districts and self-employed individuals to inject vitality into the local economy.

To support this, a so-called ‘Economic Supplementary Budget’ will be promoted within this month, swiftly allocating 50% of available resources to the economic sector, aiming to serve as a catalyst for economic recovery by revitalizing the local economy by next month.

The initial ‘Corporate Damage Response Support Team’ aimed to preemptively identify damages to SMEs caused by COVID-19 and monitor the overall economic situation to minimize confusion.

In particular, the Response Support Team established a rapid support system for companies and, upon receiving damage reports, has been investigating causes and devising minimization measures to respond accordingly.

Upon formation, the Response Support Team sent guidance letters to 2,000 SMEs and conducted a full survey of affected companies. As of the 13th, 21 damage reports had been received by the team. The district linked these companies with customized consulting and policy support through the Corporate Doctor Center.

They formed a network with Hanam Industrial Complex Management Corporation, Pyeongdong Regional Enterprise Operation Council, and Sochon Agricultural and Industrial Complex Operation Council to encourage companies to conduct their own COVID-19 disinfection efforts and continued support such as lending disinfection equipment.

On the 27th of last month, Gwangsan District also promoted a ‘COVID-19 Damage Company Themed Consultation.’ To prevent the spread of COVID-19, they opened a public chat room called ‘COVID Damage Consultation’ on a chat app, providing consulting on special guarantee support, management stabilization funds connection, export damage company loans, and employment retention subsidies to 30 SMEs and 47 small business owners with Corporate Doctor Center experts in management, technology, finance, and marketing, helping to resolve difficulties.

For small business owners lacking collateral ability, a special guarantee agreement was signed with the Credit Guarantee Foundation on the 14th of last month, opening a path to borrow up to 20 million KRW per store. As of March 13, about 2,300 consultations for Gwangju Special Credit Guarantee Support have been received, with about 5,500 consultation reservations known.

Alongside this, the district rolled up its sleeves to minimize damage to neighborhood commercial districts and support merchants’ self-help efforts.

On January 28, early in South Korea’s COVID-19 response, Gwangsan District opened an online communication channel called ‘Mungchyeoya Sanda’ (‘We Must Unite to Survive’) with the presidents of 17 neighborhood commercial district merchant associations.

The focus was on establishing a rapid response system and smooth communication as the most important factors when a crisis occurs. The network and communication within Gwangsan District’s neighborhood commercial district merchant associations played a pivotal role as a base for merchants to overcome COVID-19 on their own.

In particular, the communication channel shone during the district-wide disinfection on the 10th of last month. Along with disinfection in 21 neighborhoods, merchants in the Seonun district conducted special disinfection of their shopping areas.

Furthermore, to alleviate citizens’ anxiety, Gwangsan District placed ‘Clean Store’ stickers inside and outside disinfected stores.

Upon hearing this, the Hanam 2 District Shopping Mall Merchants Association independently produced and attached ‘Safe Banner’ and ‘Safe Store’ stickers and shared this information in the communication channel.

Other merchant associations followed suit, and soon this movement spread throughout Gwangsan District. As a result, many merchants are now voluntarily disinfecting their stores. The communication network and district-wide disinfection have been praised as an opportunity for merchants to internalize hygiene awareness.

Gwangsan District’s efforts to transform neighborhood commercial districts into vibrant places have recently continued through the ‘Neighborhood Commercial District CPR’ contest project. This project supports merchants who discover content such as festivals, promotions, and events centered on merchant associations with up to 10 million KRW.

Gwangsan District plans to complete contest submissions by the end of this month and select 5 to 7 contents to support. Additionally, merchants who submit these contents will refine them with the Corporate Doctor Center to develop them into local specialties loved by both citizens and merchants.

Moreover, Gwangsan District has eased the operation scale of the district office cafeteria to support neighborhood commercial districts through ‘Dining Out Days’ for public officials and promoted local consumption activities such as traditional market shopping events, providing relief to small business owners.

According to the survey conducted by Gwangsan District, 93% of self-employed respondents reported a decrease in sales in February and March compared to January, with the amount reaching 48%. Additionally, 23% of self-employed individuals reduced their workforce due to COVID-19, and 24.8% of businesses are considering temporary closure or shutdown if the situation prolongs. They strongly voiced the urgent need for direct support such as operating funds and rent support from the government and local governments.

Gwangsan District added that self-employment, the foundation of the low-income economy, is severely shaken and earnestly requests direct support rather than indirect support.

Kim Samho, Mayor of Gwangsan District, said, “We must catch two rabbits: citizens’ lives and safety, and revitalizing the stagnant local economy,” adding, “From the early stages of the COVID-19 outbreak, Gwangsan District has been striving to minimize damage to the local economy.”

He continued, “Now, preparing for the prolonged situation, apart from quarantine measures, the Emergency Economic Situation Room is preparing the ‘Gwangsan Vaccine’ reflecting voices from the economic field, and we will devote all efforts to reviving the local economy.”

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