Revitalizing Itaewon Alleyway Businesses

Yongsan-gu Partners with Shinhan Bank and Seoul Credit Guarantee Foundation to Provide Consulting, Facility Improvement, and Financial Support for Small Businesses

[Asia Economy Reporter Jong-il Park] Yongsan-gu (District Mayor Seong Chang-hyun) is partnering with Shinhan Bank and the Seoul Credit Guarantee Foundation to carry out the ‘Itaewon World Food Street Revitalization Support Project.’

This is part of the 2020 Seoul City Alley Market Revitalization Support Project.

The support targets small business owners operating normally in the World Food Culture Street area (Itaewon-ro 27-gil), and the support includes consulting (self-employed clinic), facility improvement, and financial support (loans).

Consulting covers marketing and promotion, store management and presentation, menu development and composition, profit and loss management, and legal and tax counseling. Experts in each field visit the stores and inform them of areas needing improvement.

Support is provided up to twice per business, and the service is free of charge.

Facility improvement targets businesses that have been open for more than six months. The support amount is up to 1 million KRW per business (90% of the required amount), and can be used to replace or repair signs, awnings, display fixtures, interiors, tables and chairs, restrooms, dishwashers, refrigerators, and heating and cooling facilities.

Financial support is provided up to 50 million KRW (including previously guaranteed amounts up to 100 million KRW). For applying businesses, the Guarantee Foundation conducts on-site inspections and, after screening, issues a guarantee certificate, allowing loans to be obtained through Shinhan Bank.

Those wishing to apply should submit an application form, a copy of their business registration certificate, and a VAT taxable standard certificate to the Itaewon Tourism Special Zone Association by the 8th. Afterwards, the foundation will contact selected businesses individually.

Consulting support is expected to be provided to 15 businesses, and facility improvement to 20 businesses.

A district official said, “Since the COVID-19 outbreak originating from clubs in May, the entire Itaewon area has been struggling, especially the World Food Street,” adding, “This revitalization project is expected to contribute, even if slightly, to the recovery of the commercial district.”

The district has also prepared its own funds to provide emergency management stabilization funds to local small business owners. As of September 25, 4,086 businesses applied for support, and among them, the district has paid 1.875 billion KRW in cash to 2,571 businesses. The remaining approximately 1,000 businesses will receive funds as soon as their reviews are completed.

In addition, the district plans to lead economic recovery by employing all possible measures, including ▲ issuing Yongsan Love Gift Certificates ▲ lowering loan interest rates for small, youth, and small business enterprises ▲ operating a customized bidding information system ▲ prioritizing purchases of small business products ▲ supporting businesses visited by COVID-19 confirmed cases ▲ and reducing regular road occupancy fees.

Seong Chang-hyun, Mayor of Yongsan-gu, said, “We are joining forces with Shinhan Bank and the Seoul Credit Guarantee Foundation to strengthen the self-sustainability of merchants in the Itaewon World Food Street,” and added, “We hope this will be an opportunity for the revitalization of the depressed alley market and for that vitality to spread throughout Yongsan-gu.”

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