[Interview] Lee Sung, Guro District Mayor: "Overcoming the COVID Crisis Through Cooperation Instead of Layoffs"

In June, Seoul City Declared Itself the First 'No Layoff City'... Establishing a Foundation to Utilize Paid Leave System... Supporting Employee Welfare Expenses for Companies Maintaining Employment... Providing Seoul Love Gift Certificates Worth Approximately 400,000 KRW per Employee

[Asia Economy Reporter Jong-il Park] "To overcome the current crisis, efforts to share the pain together are necessary."

Lee Sung, the mayor of Guro District, is emphasizing 'coexistence' as a solution to overcome the crisis caused by the novel coronavirus infection (COVID-19). In June, Guro District became the first autonomous district in Seoul to declare itself a 'City Without Layoffs.' The purpose is for companies to maintain employment and for the district office to support this, creating a city with stable jobs.

To this end, the district provides various benefits to businesses. For companies not enrolled in employment insurance, the district fully supports the employer's share of the 'Durunuri Social Insurance Premiums (Employment Insurance and National Pension)' for six months to enable them to enroll. This applies to workers earning less than 2.15 million KRW per month and their employers at workplaces with fewer than 10 employees. If a company enrolls in the Durunuri support program of the Korea Workers' Compensation and Welfare Service and prepays the insurance premiums, the district subsidizes the amount.

For companies enrolled in employment insurance, the district office covers the employer's share of the Employment Retention Subsidy, which must be paid during employees' paid leave, for six months. This is to create conditions for paid leave instead of layoffs. Guro District grants local tax payment deferrals and reduces occupancy fees for all companies participating in the 'City Without Layoffs' agreement. It also promotes the 'Seoul Love Employment Happiness Support Project,' which subsidizes employee welfare expenses for companies maintaining employment.

Additionally, Guro District is striving to reduce rent burdens so that small business owners and self-employed individuals do not have to lay off employees. In April, the district signed a business agreement with the Guro Branch of the Korea Association of Realtors for the 'Good Real Estate Brokerage Offices' initiative. Participating brokerage offices ask landlords to reduce existing and new contract rents. They also reduce brokerage fees by 20%, sharing the burden of hardship.

To alleviate management difficulties, Guro District also reduced road occupancy fees for public land by 25%. This measure is expected to reduce fees by 780 million KRW across 1,388 cases. The district mayor stated, "To overcome the unprecedented COVID-19 crisis, efforts of mutual concession and consideration are absolutely necessary," and added, "The district will continue to strive to build a social safety net that can support this."

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