'Good Landlord' Starfield Lowers Rent Amid December Social Distancing Tightening

Rent Burden Reduced for 660 Stores with Social Distancing Raised to Level 2.5
Rent and Maintenance Fees Exempted for Mandatory Closure Stores Including Indoor Sports and Cultural Education Facilities

[Asia Economy Reporter Cha Min-young] Since the outbreak of the novel coronavirus infection (COVID-19), Starfield, which has supported small and medium-sized tenant companies three times, has once again stepped up as a 'good landlord' amid the social distancing escalation in December.

Shinsegae Property announced on the 16th that it will reduce December rent by up to 40% for small business owners and small and medium-sized tenant companies at Starfield City Wirye, Myeongji, Bucheon, and Starfield Hanam, Goyang, Anseong, and COEX Mall.

With this support measure, about 660 small and medium-sized tenant stores with a significant decrease in sales compared to December last year will have reduced rent burdens. Depending on the sales decline rate compared to December last year, they will receive rent reduction benefits ranging from 20% to up to 40%.

The rent support targets all small and medium-sized tenant stores at Starfield COEX Mall and Starfield City Wirye, Myeongji, and Bucheon. In the case of Starfield Hanam, Goyang, and Anseong, service stores such as food and beverage (F&B), beauty salons, nail shops, and optical shops, which have been relatively severely affected, are included.

During the social distancing level 2.5 period, rent and management fees for a total of 14 stores, including indoor sports facilities and cultural education facilities that must be closed compulsorily, will be fully waived.

Lim Young-rok, CEO of Shinsegae Property, said, “We deeply empathize with the difficulties and crises of tenant stores, and although our company inevitably faces management disruptions due to decreased sales, we have engaged in mutual growth activities such as rent reductions, payment deferrals, F&B support, and purchasing entertainment vouchers to help.” He added, “We sincerely hope that this additional rent reduction will help tenant stores overcome COVID-19.”

Previously, Starfield invested about 9 billion KRW to reduce rent by up to 40% for small and medium-sized tenant companies, excluding some genres of Starfield other than COEX Mall, over a total of six months in three phases. F&B, service, and entertainment facility stores were also supported.

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