Gwangjin District Allocates 20.1 Billion KRW Emergency Supplementary Budget for COVID-19

Focusing on Thorough Quarantine and Revitalizing the Local Economy
- 6.6 Billion KRW in Support for Small Business Owners Facing Threats to Their Livelihoods
- Up to 30 Million KRW in Zero-Interest, Fee-Free Loans per Business for Small Business Owners
- 550 Million KRW Allocated for Development and Operation of the “Gwangjin Narumi” Public Delivery App to Reduce Restaurant Delivery Fees
- 3.1 Billion KRW Allocated for Livelihood Stabilization, Job Creation, and Local Economic Revitalization
- 3.7 Billion KRW Invested in Quarantine Projects for Responding to Local Infections and Protecting Residents

Seongap Kim, Mayor of Gwangjin District, Quarantine Measures

[Asia Economy, Reporter Park Jongil] In response to the prolonged COVID-19 situation, Gwangjin District (Mayor Kim Seongap) has drawn up an emergency supplementary budget of 20.1 billion KRW to revive the stagnant local economy and prevent the spread of COVID-19. The proposal was submitted to the district council on March 23, 2020.

This supplementary budget focuses on supporting vulnerable groups such as small business owners, seniors, and children, who are facing threats to their livelihoods due to declining sales and other emergency circumstances, while also making every effort to prevent the spread of COVID-19 in the local community.

◇ 6.6 Billion KRW in Support for Small Business Owners Facing Threats to Their Livelihoods

To provide practical assistance to small business owners, micro-entrepreneurs, and small and medium-sized enterprises whose livelihoods are threatened by the economic downturn, 6.6 billion KRW-32.8% of the supplementary budget-will be urgently allocated.

First, the district will invest 5 billion KRW in the “Gwangjin Emergency Operating Fund Support” program to help resolve temporary funding shortages. Under this program, as long as a guarantee is issued by the Seoul Credit Guarantee Foundation, loans can be processed within a week, and even those with low credit ratings (grades 7-10) can borrow up to 30 million KRW.

Additionally, to minimize the burden on small business owners, a separate 1.1 billion KRW will be allocated so that those who take out emergency operating loans can benefit from one year of interest-free loans and have their fees waived for unsecured credit loans.

Furthermore, 550 million KRW will be allocated to develop and operate a public delivery app tentatively named “Gwangjin Narumi,” the first of its kind in Seoul, which, unlike existing delivery apps, will not charge restaurants any fees or advertising costs.

◇ 3.1 Billion KRW Allocated for Stimulating Local Consumption and Job Creation

To boost consumption among local residents, whose consumer sentiment has declined, and to address the increasingly serious employment issue, 3.1 billion KRW will be allocated to policies aimed at revitalizing the local economy.

Accordingly, as an incentive to stimulate the local economy and consumer sentiment, 700 million KRW will be provided as the district’s share for issuing “Gwangjin Love Gift Certificates” (worth 20 billion KRW). These are mobile gift certificates that can be used at Zero Pay-affiliated stores and can be easily and affordably purchased via a mobile app.

In addition, anyone who purchases Gwangjin Love Gift Certificates by July 31 will receive a 15% discount, and those who spend a total of at least 100,000 KRW using the certificates will receive a 10,000 KRW payback. There will also be a relay promotional campaign for Gwangjin Love using social media.

Moreover, 150 million KRW will be allocated to revitalize specialized streets and traditional markets in the district; 1 billion KRW will be allocated to the “Gwangjin Small Business Employment Retention Support Project,” which supports small business owners with fewer than five employees affected by COVID-19; 1 billion KRW will be used to create 400 public jobs for residents facing economic hardship due to unemployment; and 200 million KRW will be invested in a meal delivery service for vulnerable groups as a supplementary measure for young restaurant owners experiencing reduced sales.

In particular, the “Gwangjin Small Business Employment Retention Support Project” is notable for providing 500,000 KRW in employment retention support directly to small business owners who have suffered business losses due to COVID-19, in addition to Seoul City’s program that supports 500,000 KRW for unpaid leave workers.

Furthermore, the public job creation program “Gwangjin Happiness Jobs” will provide COVID-19-related positions, such as public awareness campaigns, administrative support, and quarantine activities, for two months to urgently assist residents facing economic hardship.

Seongap Kim, mayor of Gwangjin District, and officials visited a restaurant affected by COVID-19 and had lunch.

◇ 3.7 Billion KRW Invested to Strengthen Infectious Disease Response System for Residents

To protect the health of residents and bring an early end to COVID-19, the district will allocate 200 million KRW to produce reusable cotton masks to address management difficulties at local sewing businesses and mask supply shortages, and 3.5 billion KRW for various quarantine equipment and supplies for vulnerable groups and facilities, thereby strengthening the infectious disease response system.

Additionally, 230 million KRW will be allocated to provide online cultural content and support the operation of various closed facilities for residents unable to enjoy cultural activities due to the social distancing campaign. To prepare for unforeseen circumstances arising from the prolonged COVID-19 situation, 6.5 billion KRW will be set aside as reserve funds for disaster and emergency purposes and to build up the disaster management fund.

Mayor Kim Seongap stated, “This COVID-19 supplementary budget was drawn up with the dual goals of strengthening the local quarantine system and revitalizing the local economy. We hope it will alleviate residents’ anxieties about COVID-19 and serve as a stepping stone for small and medium-sized enterprises and small business owners who have suffered economic damage to recover and get back on their feet.”

Previously, Gwangjin District urgently invested approximately 2.1 billion KRW from reserve and disaster management funds for the operation of screening clinics and the purchase of various quarantine equipment and supplies. As preemptive measures to revitalize the local economy, the district has also implemented: 35.6 billion KRW in operational funds for small and medium-sized enterprises and small business owners; early execution of 147.1 billion KRW in local government spending in the first half of the year; temporary suspension of all staff cafeterias at district and neighborhood offices; prioritizing local businesses for private contracts; tax audits and collection deferrals for local taxes; and up to one year of deferment and installment payment for non-tax revenue arrears.

The 2020 first supplementary budget proposal submitted by Gwangjin District will be finalized after deliberation and approval at the 232nd special session of the Gwangjin District Council, scheduled for March 25, 2020.

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