"'Good Landlord' Loan Benefits and Reduced National Property Rental Burden"

[Asia Economy Reporter Kim Jong-hwa] The government will implement a 'Small Business Rent Support Triple Package,' including a 50% tax credit on the rent reduction amount for 'Good Landlords.'

At the 19th Emergency Economic Central Countermeasures Headquarters meeting chaired by Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki on the 12th, the confirmed small business rent support measures include three plans: △ a 50% tax credit on income and corporate tax for rent reductions, △ rent burden relief for small businesses leasing national property, and △ rent burden relief support for small businesses located in public institutions.

First, for 'Good Landlords' who reduce rent, the tax support application period for a 50% tax credit on the rent reduction amount in income and corporate tax will be extended by six months until the end of June next year. 'Good Landlords' who reduce rent will be temporarily included in the eligible sectors for small business policy funds (loans) during this period. This means that good landlords can also benefit when applying for loans.

Through voluntary participation of private financial companies, preferential financial products for good landlords will be launched. Additionally, free electrical safety inspections for good landlords, extra points for government project participation for traditional markets and shopping districts with rent reductions, and the reflection of large corporations' rent reduction performance in the win-win growth index evaluation will be implemented.

According to a survey conducted by the Ministry of SMEs and Startups on the 31st of last month targeting small businesses in traditional markets, 5,915 landlords reduced rent for 42,977 stores, and it is expected that the number of good landlords will increase with this plan.

Rent burden for small businesses leasing national property will be alleviated. The government has already reduced rent by 22.5 billion KRW as of the end of August through rent reductions and late fee relief on national property and public institution-owned property. For central government property, the rent rate was reduced from 3% of the property value to 1%, and usage fees were waived during facility closures or suspensions due to COVID-19. Rent for public institution-owned property was reduced by 50%, and through payment deferrals, rent burdens of 19.1 billion KRW were lowered as of the end of September.

Local governments and local public institutions are also promoting rent reductions through tax and financial support totaling 115.1 billion KRW. By the end of September, 13 provinces and cities (115 districts and counties) pursued 5.1 billion KRW in property tax reductions, and 241 local governments supported 75.68 billion KRW in rent through temporary reductions, exemptions, and lease period extensions. Additionally, 112 local public institutions supported 34.36 billion KRW in rent.

To encourage active participation from local governments, a 'Good Landlord Certification' led by local governments will be conducted, and various benefits tailored to each local government's circumstances will be separately prepared. Various measures will be pursued, such as adding good landlord support performance to evaluation criteria when providing incentives (special grants) for local love gift certificates.

A Ministry of SMEs and Startups official stated, "We will promptly complete amendments to related laws such as the Restriction of Special Taxation Act and actively promote publicity and local government participation to spread a social atmosphere that supports rent reductions."

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