SME Usage Rate Reduced from 5% to 3%... Payment Deferral and Late Fee Reduction

Resolution on Partial Amendment to the Enforcement Decree of the State Property Act in Response to COVID-19

[Asia Economy Reporter Kwangho Lee] The government deliberated and approved the partial amendment of the Enforcement Decree of the State Property Act, which includes additional relief measures for the usage burden of state-owned property in response to the novel coronavirus infection (COVID-19), at the 38th Cabinet meeting held on the 28th.

This amendment follows the "Additional Relief Measures for the Usage Burden of State-Owned Property in Response to COVID-19" announced at the 6th Central Emergency Economic Countermeasures Headquarters on the 11th of last month.

The amendment establishes a basis for the Minister of Strategy and Finance to announce reductions in usage fees for small and medium-sized enterprises (SMEs), deferment of fee payments, and reduction of late fees through public notice, to alleviate the burden on tenants of state-owned property in cases of natural disasters like COVID-19, disasters, or economic downturns.

According to the amendment of the Enforcement Decree of the State Property Act, the Ministry of Strategy and Finance plans to announce a public notice on the 31st of this month detailing the specific applicable targets, application periods, and support criteria, which will take effect on the 1st of next month.

The content of the public notice will expand the support targets and support details related to the use of state-owned property to alleviate the usage fee burden on SMEs and small business owners due to the prolonged COVID-19 pandemic.

The scope of usage fee reductions, previously limited to small business owners, will be expanded to include SMEs; usage fees will be reduced by 40% from 5% to 3% of the property value; payment deadlines for fees due by the end of the year can be deferred for up to six months. Additionally, from March 1st to the end of the year, the late interest rate will be set at 5% regardless of the overdue period, down from the previous 7-10% depending on the overdue period.

The Ministry of Strategy and Finance will notify state property management agencies of related work processing guidelines in conjunction with the enforcement of the public notice to ensure that all eligible recipients receive support without omission.

A Ministry of Strategy and Finance official stated, "This support measure is expected to help establish a recovery foundation for companies occupying state-owned property who are experiencing business difficulties and contribute to the spread of a win-win atmosphere."

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