[Interview] Yuseonghun, Geumcheon District Mayor, "Preparing All Measures to Revive the Alley Economy"

Measures such as financial support, cost compensation, and consumption promotion to revitalize the alley economy... Operation of the 'Golmok Economy Support Center' from the end of April... Strengthening communication administration including on-site consultations for livelihood support explained by the district mayor

[Asia Economy Reporter Park Jong-il] “Many COVID-19 livelihood economic support measures have been introduced so far, but in reality, many residents do not know what benefits they can receive or how to apply. We will have public officials go directly to the field to find residents struggling due to COVID-19 and ensure that no one is left out from receiving practical help.”

Yoo Seong-hoon, Mayor of Geumcheon-gu, stated in an interview that he will strengthen on-site communication administration to listen to the real difficulties faced by small business owners struggling due to the COVID-19 crisis.

Geumcheon-gu is home to 32,472 businesses employing 234,012 workers and has 7 traditional markets. In particular, 8,277 small and medium-sized enterprises are concentrated in the electrical and electronics, textile and apparel, and machinery sectors in the ‘G Valley’ 2nd and 3rd complexes.

Amid the prolonged COVID-19 pandemic, residents’ economic activities and consumer sentiment have weakened, leading to decreased sales in most local industries such as lodging, sports, restaurants, and educational services.

The district is implementing various livelihood economic revitalization support measures, including financial support, cost compensation, and consumption promotion for small businesses, small merchants, and self-employed individuals to overcome the local economic crisis.

First, as a financial support project, the district has allocated an additional 5 billion KRW from its budget to provide unsecured and interest-free loans to small businesses and small merchants struggling due to COVID-19.

Additionally, to alleviate funding difficulties for small and medium-sized enterprises, the SME development fund will be increased by 2 billion KRW from the existing 4 billion KRW to expand loan support, and the loan interest rate will be lowered from 1.5% to 0.8% to reduce interest burdens.

Furthermore, a new interest differential compensation project will be established to support the interest difference on loans from commercial banks, and the traditional market loan project will be expanded.

The district’s COVID-19 support measures also include a ‘cost compensation’ project that directly supports expenses.

For businesses with fewer than five employees affected by confirmed cases visits, the district will directly support fixed costs such as labor and rent. Affected small merchants and franchise business owners can receive up to 1.95 million KRW depending on the closure period.

In addition, to support business owners affected by closures during the COVID-19 period, the district is promoting Seoul-type Good Landlord support, employment retention subsidies, voluntary closure subsidies for multi-use facilities, closure support for academies and private institutes, youth small business support, and daycare center support projects.

The district is also focusing on ‘consumption promotion’ to revitalize the local economy depressed by COVID-19.

The issuance scale of the local love currency, ‘Geumcheon G Valley Love Gift Certificate,’ will be expanded from 3 billion KRW to 5 billion KRW, with a 10% special discount sale and prize events to stimulate consumption activities.

Moreover, the district office and traditional markets have signed a ‘One District-One Traditional Market’ sisterhood agreement and a partnership agreement for the traditional market shopping mall D’ LIVE to promote consumption activation.

Additionally, a project will be promoted where welfare centers operating free meals and traditional markets cooperate to purchase up to 10% of free meal ingredients from local traditional markets.

As a follow-up measure to various livelihood economic revitalization projects, the district office’s Regional Economy Division has been operating the ‘Alley Economy Support Center’ since the end of April to ensure that no small business, small merchant, or self-employed person misses out on benefits due to lack of awareness of support policies.

The ‘Alley Economy Support Center’ is headed by the Director of the Economic Environment Bureau and consists of four dedicated teams: General Support Team, Financial Loan Support Team, Grievance Counseling Support Team, and others, which counsel beneficiaries’ difficulties and connect them to various support projects.

Additionally, the center handles consultation for the ‘Seoul City Self-Employed Survival Fund Support’ project, which provides 700,000 KRW per month for two months to self-employed individuals with annual sales under 200 million KRW in 2019.

The district also provides consultation and guidance at the ‘G Valley’ Corporate Support Center and Corporate Citizen Hall, where many companies are concentrated, and plans to devise customized support measures suitable for local business conditions to restore the local economy.

Furthermore, the district plans to hold the ‘(Tentative Name) COVID-19 Overcome!! Mayor’s Livelihood Support On-site Consultation’ tour by district zones and conduct ‘Industry-specific meetings’ with profit-oriented organizations such as the Restaurant Association to actively reflect support measures.

Mayor Yoo Seong-hoon said, “As the COVID-19 crisis prolongs, I want to provide practical help to small business owners facing management difficulties. Through on-site communication, I will listen to each individual’s opinions and suggestions and do my best to wisely overcome the COVID-19 crisis.”

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