Songpa-gu Provides Customized Support of 50 Billion KRW to 59,000 Small Business Owners and Vulnerable Groups

Starting Support for Daycare Centers, Nursing Facilities, and Community Child Centers on the 2nd with Rapid Payment Scheduled

[Asia Economy Reporter Jongil Park] Songpa-gu (Mayor Park Seong-su) will provide 'Songpa-style disaster relief funds' worth 50 billion KRW (including interest-free loans for small business owners) to 59,000 people affected by COVID-19 to resolve the livelihood crisis caused by the pandemic.

Songpa-gu is home to the largest population among Seoul’s autonomous districts, with 670,000 residents, and consequently has a significantly high number of small business owners, youth groups, and various welfare facilities affected by the COVID-19 crisis.

Given the hardships endured by residents who complied with strict quarantine measures while bearing high rents and living expenses, Songpa-gu proactively secured funding early on, securing 13.7 billion KRW from the district budget and 17.9 billion KRW from the city budget to prepare this disaster relief fund.

The Songpa-gu crisis recovery disaster relief fund consists of ‘3 major sectors and 12 detailed projects’: ▲support for small business owners affected ▲support for vulnerable groups ▲support for industries with actual damage.

In coordination with the government’s 4th disaster relief fund, the plan is to provide robust support to small business owners and low-income vulnerable groups who have been severely impacted by COVID-19, thereby enhancing the compensation effect.

Additionally, emphasis has been placed on identifying and supporting blind spots that were previously excluded from government disaster relief funds.

First, intensive support will be provided to small business owners who have suffered severe economic damage due to COVID-19.

For businesses subject to closure and operation restrictions (approximately 18,700 locations), an additional 20-30% (600,000 to 1.5 million KRW) on top of the government’s 4th disaster relief fund will be provided as the ▲Seoul Economic Vitality Fund. For those who have closed their businesses in these sectors (about 3,000 people), 500,000 KRW will be given as damage support.

Also, ▲for small business owners requiring emergency loans (1,000 people), a loan fund of 20 billion KRW has been prepared to provide unsecured, interest-free loans (for one year) up to 20 million KRW per person.

Vulnerable groups such as unemployed youth and low-income households will also be actively supported. Emergency support for unemployed youth focuses on the fact that previous policies mainly targeted the unemployed, aiming at young people who lost employment opportunities due to economic downturn. Unemployed youth aged 19 to 34 within two years after their final education (11,000 people) will receive 500,000 KRW each in Songpa Love Gift Certificates.

Furthermore, 20,000 low-income vulnerable households, including basic livelihood security recipients and near-poverty groups facing economic difficulties due to COVID-19, will receive 100,000 KRW each to help stabilize their livelihoods.

Alongside this, support will be provided to many industries severely affected by the unprecedented COVID-19 crisis. Disaster relief funds (500,000 to 1 million KRW) will be given to cultural artists (760 people, 1 million KRW each), tourism and MICE small business owners (400 locations, 2 million KRW per business), transportation workers (2,300 people, 500,000 KRW each), as well as welfare hub facilities such as daycare centers, senior care facilities, community child centers, and religious facilities (1,110 locations), aiming to stabilize residents’ livelihoods and business operations and strengthen the local community’s quarantine system.

Detailed information can be found on the Songpa-gu website.

Mayor Park Seong-su emphasized, “We will do our utmost administrative efforts to promptly provide the crisis recovery disaster relief funds to help compensate for economic damages, even if only partially,” and added, “We will carefully monitor the effectiveness of this support and continuously identify blind spots to expand the provision of Songpa-style disaster relief funds tailored to local circumstances.”

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