Seoul City to Provide Up to 1 Million Won Seoul Love Gift Certificates to 'Good Landlords'

Stores with Converted Deposit Under 900 Million KRW Signing Voluntary Rent Reduction 'Win-Win Agreement' Between Landlords and Tenants
Seoul Love Gift Certificates Worth 300,000 to 1,000,000 KRW Provided Based on Annual Total Reduction Amount

[Asia Economy Reporter Lim Cheol-young] On the 14th, the Seoul Metropolitan Government announced that it will select ‘Seoul-type Good Landlords’ who voluntarily reduce rent for tenants struggling with decreased sales due to COVID-19 and provide them with Seoul Love Gift Certificates worth up to 1 million KRW, which can be used like cash.

The target is stores located in Seoul with a converted deposit amount of 900 million KRW or less (monthly rent × 100 + deposit), where tenants and landlords have signed a ‘win-win agreement’ related to rent reduction.

The gift certificates will be provided according to the total annual rent reduction amount: 300,000 KRW (for reductions between 1 million KRW and less than 5 million KRW), 500,000 KRW (for reductions between 5 million KRW and less than 10 million KRW), and 1 million KRW (for reductions of 10 million KRW or more). The payment method is a smartphone app-based mobile Seoul Love Gift Certificate. The recipients will be finalized and the gift certificates will be distributed in April.

For stores selected as good landlords, promotion through a ‘real estate app’ will also be supported. The app will display a list of good landlord stores and icons on the search map to instill a positive image of the stores among citizens.

Landlords wishing to participate in the ‘Seoul-type Good Landlord Support Project’ can apply from the 15th to March 31 by submitting an application form, the win-win agreement, a copy of the lease contract, and the tenant’s business registration certificate to the autonomous district where the commercial building is located after signing the rent reduction win-win agreement (rent paid in 2021) with the tenant.

Earlier, last year, Seoul reduced rent by 50% and waived common management fees for a total of 10,090 small businesses and small merchants located in subway and underground shopping areas owned by the city and public institutions. This year, as a measure for public leadership, the rent reduction for public commercial properties (44.8 billion KRW) has been extended until June.

This ‘Seoul-type Good Landlord Project’ can also be combined with the government’s support measure that provides a 50% tax credit on rent reductions for small business owners affected by COVID-19, extended until June this year.

Seo Seong-man, Director of Labor and Livelihood Policy at Seoul City, said, “In these difficult times due to the prolonged COVID-19 pandemic, the Good Landlord Support Project will be a small comfort to small business owners,” and added, “We hope that landlords’ goodwill will encourage voluntary participation so that tenants can overcome their difficulties.”

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