Ministry of Land, Infrastructure and Transport Eases Burden on Tenants in Rental-Only Industrial Complexes

[Asia Economy Reporter Yoo In-ho] The Ministry of Land, Infrastructure and Transport announced on the 6th that it will revise and implement the 'Guidelines on the Management and Operation of Rental-Only Industrial Complexes' to support companies facing increasing difficulties due to the prolonged domestic and international economic recession and the impact of the novel coronavirus infection (COVID-19).

With this revision, a basis for rent reduction for overseas returnee companies entering rental-only industrial complexes has been established, along with grounds for management institutions to independently reduce rent to help resident companies overcome crises.

Including companies attracted by local governments as priority tenants in rental industrial complexes is expected to contribute to revitalizing the regional economy.

Regarding rent reductions, previously, reductions were limited to areas designated by the government under relevant laws as Special Industrial Crisis Response Areas, Employment Disaster Areas, Employment Crisis Areas, and win-win regional job companies.

Recently, to support the domestic return of overseas-expanding companies, overseas returnee companies have also been included as eligible for rent reductions. In the unprecedented economic crisis caused by COVID-19, rental-only industrial complex management institutions are now allowed to autonomously reduce rent to promptly support companies facing economic difficulties.

Through this revision, rent reduction regulations can be applied in 16 rental-only industrial complexes operating nationwide. Management institutions of rental industrial complexes will autonomously decide on whether to reduce rent, the reduction period, and the reduction rate after internal review.

For rental-only industrial complexes located outside the metropolitan area, priority tenancy ranking will be granted to companies that have signed resident agreements with local governments.

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