Usage Fees for 'Seongdong Anshim Shopping Center,' Home to Gongssi Bookstore and Others, Remain 'Frozen'

Seongdong Anshim Shopping Center Freezes Usage Fees for 40 Tenant Companies at Previous Year's Level... Eases Burden on Tenants Affected by COVID-19, Targeting Companies with Contracts Due in Second Half

Gong's Bookstore located in Seongdong Anshim Shopping Center

[Asia Economy Reporter Park Jong-il] Seongdong-gu (District Mayor Jung Won-oh) has decided to freeze the usage fees at last year's level for 40 tenant businesses located in the 'Seongdong Anshim Shopping Center,' which houses local small business owners and young entrepreneurs.

The 'Seongdong Anshim Shopping Center' is the nation's first public safety shopping center operated by the district, symbolizing the anti-gentrification policy. Usage fees are based on evaluations by professional appraisal institutions and are adjusted annually to reflect about 70% of the market price, including increases based on property appraisal values.

On the 28th of last month, the 'Public Safety Shopping Center Operation Committee,' which determines the main operational directions of the Seongdong Anshim Shopping Center, made a sudden decision to freeze the usage fees for businesses renewing their contracts in the second half of the year at the previous year's level.

Although an average increase of more than 5% in usage fees was unavoidable due to the rise in property values this year, the committee agreed to ease the burden on tenant businesses amid the prolonged economic downturn caused by the COVID-19 pandemic.

The target includes 40 tenant businesses whose contracts are due in the second half of this year, including small business tenants in the Seongdong Anshim Shopping Center Building and stores 1 through 7 of the Seongdong Anshim Shopping Center.

Earlier in early March, the district launched a 'Good Rent Campaign,' deferring rent payments until the end of August for 12 neighborhood living facility businesses in the Seongdong Anshim Shopping Center and exempting basic management fees for all tenant businesses for six months.

Subsequently, in early May, rent for 31 tenant businesses was reduced by 50% for six months, providing additional support totaling approximately 760 million KRW.

Jang Hwa-min, CEO of tenant business 'Gongssi Bookstore,' said, "Due to the recent resurgence of COVID-19, we have been struggling with only one or two visitors per day, and it feels overwhelming to get through this crisis. It is a relief that the district has at least frozen the usage fee increase."

Jung Won-oh, Mayor of Seongdong-gu, stated, "We will do our best to provide various support measures and contribute to the recovery of the local economy to help small business owners who are currently facing the most difficult times."

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