Nowon-gu Reduces Rent for District-Owned Properties to Support Small Business Owners Struggling Due to COVID-19

Support for 80 Small Businesses and Small Business Owners Renting Public Property... 61 Facility Operators Receive 50% Rent Reduction for 6 Months During Disaster Period (Feb-Jul)

[Asia Economy Reporter Jongil Park] Nowon-gu (District Mayor Oh Seung-rok) will extend the lease period to reduce rent and support damages caused by business closures for small businesses and small merchants using district-owned properties who are struggling due to COVID-19.

The district leases 80 district-owned properties, including stores in public facilities and the Zero Energy Housing commercial area located in Hagye-dong, to small businesses and small merchants for a fee.

Due to the prolonged COVID-19 pandemic causing economic recession, the burden of rent is increasing for small businesses and small merchants leasing and using district-owned properties, as facility users have decreased and public institutions have closed, leading to business suspensions.

Recently, the Enforcement Decree of the “Act on the Management of Shared Property and Goods” was partially amended, establishing a legal basis to adjust rent reduction rates through the Shared Property Deliberation Committee during disasters. Accordingly, the district decided to support small businesses and small merchants leasing and using district-owned properties.

First, the district designated the period from February, when the COVID-19 crisis alert was raised to the severe level, to July as the disaster period. During this disaster period, small businesses and small merchants using district-owned properties will receive a 50% rent reduction for six months, and rents already paid will be refunded.

This measure is expected to reduce rent by approximately 31.78 million KRW across 61 locations.

Support measures have also been prepared for 19 locations that could not use facilities due to public facility closures during the disaster period. Reflecting the opinions of small businesses and small merchants, rent will be reduced or lease periods extended according to the number of closure days.

The district will finalize the rent reduction targets, periods, and rates through the Shared Property Deliberation Committee and individually notify eligible recipients. Afterwards, through application submissions and verification of small business or small merchant status, rent will be refunded or reduced.

Since February, the district has been conducting a “Good Landlord Movement” targeting local building owners, and so far, tenants of 514 stores in 45 buildings have received rent reductions ranging from a minimum of 10% to full rent for 1 to 3 months.

District Mayor Oh Seung-rok said, “This is a time when both the public and private sectors must cooperate to overcome COVID-19,” adding, “We will continue to do our best to support small merchants through emergency operating funds, employment retention support projects, and public job provision.”

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