"Economic Slowdown in Gyeongnam Due to COVID-19, Urgent Need for Social Safety Net for Small Business Owners"

Yang Daebok, President of Gyeongnam Small Business Federation, Leading as the Best Federation

Yang Daebok, President of the Gyeongnam Small Business Association

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] "As the emergency disaster relief funds that were distributed to the entire nation are running out, the situation for local small business owners is worsening again, and the economy is heading downhill to a recession level. Since there is no certainty about when COVID-19 will end, a safety net including financial support policies and social policies exclusively for small business owners is urgently needed to coexist together."

The novel coronavirus infection (COVID-19) is still ongoing. Yang Daebok, president of the Gyeongnam Small Business Association, who took office last October, emphasized that realistic financial support policies and social policies exclusively for Gyeongnam small business owners, who have encountered the unexpected challenge of COVID-19, must be urgently implemented. The Gyeongnam Association he leads was also selected as the best association nationwide by the Small Business Association on the 25th of last month.

President Yang first argued that through the additional distribution of emergency disaster relief funds, the stabilization of small business owners' livelihoods should be promoted again, and that the second small business financial support program worth 10 trillion won, discussed at the Emergency Economic Central Countermeasures Headquarters meeting chaired by Hong Nam-ki, Minister of Strategy and Finance, should be implemented in a way that fits reality. The core of the second program is that six major commercial banks receive about 95% guarantees from the Korea Credit Guarantee Fund and provide support with interest rates of 3-5%, a two-year grace period, and a three-year installment repayment plan.

According to President Yang, the majority of small business owners visit banks and other financial institutions repeatedly for operating funds or living expenses, but are refused financial support due to reasons such as low credit ratings. On top of this, the impact has worsened further with the addition of COVID-19.

President Yang claimed that as the emergency disaster relief funds are depleted, the situation of small business owners is becoming difficult again. Although the government confidently announced the release of 10 trillion won, he questioned who and where this money is actually flowing if small business owners cannot secure funds due to regulations.

President Yang said, "If borrowers have been repaying loans well or have no history of tax delinquency, even those with a credit rating below grade 7 should be allowed to secure funds. I have directly submitted this opinion to the Credit Guarantee Foundation," and lamented, "After paying building rent, employee wages, taxes, etc., there is actually no money left in hand."

He also emphasized the need for realistic social policies for local young self-employed entrepreneurs. He pointed out that the 'Youth Mall' policies, ambitiously introduced nationwide, are not keeping up with reality. He criticized, "The government and local governments are currently implementing or planning financial support and site development for youth startups, but these are results of desk-bound administration without accompanying reality."

President Yang continued, "At one time, Gyeongnam Province tried to revitalize the local economy through the Youth Mall project, but except for a very few, most failed," and pointed out, "This is because they did not listen to the 'thoughts of the youth.' Focusing only on gathering opinions from local residents who create the Youth Mall turned it into a Youth Mall for the locals, not for the youth."

Finally, President Yang mentioned that it is also important that large corporations located in the Gyeongnam region and their partner companies do not collapse.

President Yang said, "Companies are the 'lifeblood' of the region. If large corporations die, the small business owners who depend on them also die together. We are preparing various realistic measures at the association level to help establish ways to coexist and prosper together, so please watch over us."

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