Suncheon City Expands Support Programs to Stabilize Small Business Management

Storefront view of Jungang-dong, Suncheon City

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Suncheon City, Jeollanam-do announced on the 10th that it is discovering and implementing various policies to support small business owners, who form the foundation of the local economy, as the economic downturn caused by the COVID-19 pandemic shows signs of prolonged stagnation.

Since January, the city’s “Interest-Free Loan for Small Business Management Stabilization” project, with a budget of 15 billion KRW, was completed ahead of schedule, prompting the city to secure an additional 30 billion KRW in funding to provide support starting from the 20th of this month.

Since January, Suncheon City has completed support for a total of 657 cases amounting to 22.6 billion KRW through low-interest loan support projects from the government and Jeollanam-do via the Jeonnam Credit Guarantee Foundation, as well as the city’s interest-free loan support project. Currently, 1,702 cases totaling 64.4 billion KRW in financial support applications are being processed.

Small business owners wishing to apply for financial support can apply at the Jeonnam Credit Guarantee Foundation and, depending on their credit rating, at commercial banks (grades 1 to 3) or the Industrial Bank of Korea (grades 1 to 6). Emergency loans under 10 million KRW can be applied for at the Small Enterprise and Market Service.

Public utility fees, which are fixed costs, are also supported for small business owners whose sales have sharply declined.

To stabilize small business management, as of the 22nd of last month, Suncheon City will provide a one-time payment of 300,000 KRW in Suncheon Love Gift Certificates to businesses registered and operating within the city with annual sales under 300 million KRW and fewer than five regular employees. Considering the special nature of mining, manufacturing, construction, and transportation industries, businesses with fewer than ten employees are also eligible.

Eligible business owners can apply at the local town or township community service centers by the 29th of next month. To prevent overcrowding of applicants, the city has introduced a 5-day rotation system based on the business owner’s birth year, similar to the public mask sales method. After screening, payments are expected to begin at the end of this month.

Required documents for application include an ID card, a copy of the business registration certificate, a value-added tax standard certificate (for tax-exempt businesses, a value-added tax revenue certificate), and for sole proprietors, a health insurance qualification certificate (or a health insurance workplace subscriber charge confirmation for businesses with regular employees).

However, certain industries such as gambling and gaming establishments, entertainment bars, door-to-door sales, non-store retail businesses, real estate rental businesses, and taxis supported separately by Jeollanam-do are excluded.

Additionally, Suncheon City will reduce water and sewage fees, traditional market usage fees, and provide good rent support to alleviate the burden on small business owners. From this month, for three months, water and sewage fees for eligible small businesses within the city will be reduced by 50%, and traditional market usage fees will be reduced by 50% for six months to ease management burdens.

Beyond direct support to small business owners, Suncheon City is temporarily expanding the issuance of Suncheon Love Gift Certificates to revitalize the local economy. It is distributing 19.4 billion KRW worth of certificates to support the local economy through public benefit allowances for farmers and fishermen, livelihood support for vulnerable groups, and plans to issue an additional 12 billion KRW through special discount sales by June.

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