[Interview] Seong Jang-hyun, Yongsan District Mayor: "Reviving Itaewon Commercial Area with Participation of District Office, Merchants, and Building Owners"

Yongsan-gu Launches Itaewon Commercial Revitalization Task Force on the 13th... Fundamental Solution for Itaewon Commercial Revitalization: Ending COVID-19. Preparing for the Post-COVID Era Together with Residents at the Forefront of Administration Until That Day

[Asia Economy Reporter Jong-il Park] “When the first confirmed case occurred last January, we did not expect the war against the coronavirus to last this long. Although we gained the reputation of K-quarantine through strengthened social distancing, small business owners suffered greatly. Itaewon, the heart of the tourism industry, was hit harder than any other area.”

Seong Jang-hyun, Mayor of Yongsan District, emphasized this during an interview with our paper, stating that “health quarantine and economic quarantine must proceed simultaneously.”

The mass infection threat that struck Itaewon in May last year severely shrank the local commercial district. Although vaccinations have begun, it is expected to take a long time to achieve herd immunity. In response, Yongsan District has taken the lead in revitalizing the commercial area. Mayor Seong said, “There are limits to short-term support such as lowering loan interest rates or disaster crisis relief funds,” and explained, “To prepare practical and long-term measures, the district, merchants, and building owners will participate as stakeholders in the ‘Itaewon Renaissance Project.’”

As part of this, Yongsan District held the ‘Itaewon Commercial District Revival Resolution Rally’ around Itaewon Station on the 13th. The rally, hosted by the Itaewon Tourism Special Zone Association, included reading and signing of the resolution and a block performance to revitalize the commercial district.

The resolution includes ▲strict compliance with quarantine rules ▲refraining from excessive rent increases and active participation in the Good Landlord Business (landlords) ▲development of Itaewon’s unique personality and culture through strengthening competitiveness (merchants) ▲active communication and cooperation with Yongsan District to revitalize the Itaewon commercial district (landlords and merchants). Mayor Seong emphasized, “The Itaewon Renaissance Project is a preemptive measure to prepare for the post-COVID era,” adding, “Since early this year, we have discussed various support measures through meetings with Itaewon residents and merchants.”

The district has already formed the ‘Itaewon Commercial District Revitalization Promotion Team,’ consisting of 15 members including the Itaewon Tourism Special Zone Association, building owners, merchants, experts, and public officials. On the 23rd of last month, a special credit guarantee agreement was signed with Shinhan Bank and the Seoul Credit Guarantee Foundation to support small business owners and small enterprises. When the district recommends companies, the foundation reviews and provides credit guarantees. The limit is 12 billion KRW, with Yongsan District and Shinhan Bank each contributing 500 million KRW for this agreement.

The district is continuously promoting crisis recovery projects such as disaster relief funds for businesses subject to closure or restrictions (5.5 billion KRW), loans for small and youth enterprises (7 billion KRW scale, 0.8% interest rate), and special credit guarantees (15.6 billion KRW). In the first half of this year, additional support will be provided, including support for closed small business owners in restricted industries (350 million KRW) and interest-free loans for small business owners (20 billion KRW), increasing the total support scale to 48.45 billion KRW. Mayor Seong said, “What merchants desperately need as much as subsidies and tax benefits is rent reduction,” and reiterated, “Realistic alternatives such as the Yongsan-type Good Landlord Business and Star Shop Project are necessary.”

The ‘Yongsan-type Good Landlord Support Project’ is a program that partially supports rent for building owners who sign win-win agreements. The district plans to provide up to 1 million KRW worth of Seoul Love Gift Certificates to 55 participating building owners by the end of this month, also supporting tenant facility improvements and startup costs.

The ‘Star #(Star Shop) Project,’ which utilizes vacant spaces in Itaewon, recruits about 20 tenants through a public contest to operate distinctive stores, enhancing Itaewon’s appeal. Through consultations with building owners, leases will be offered at prices lower than market rates.

Additionally, the district is promoting the Artterior project, which matches local artists with merchants to improve store designs. To revitalize the Quynon-gil alley, the district is collaborating with the Seoul Credit Guarantee Foundation to provide consulting and facility improvement support (up to 1 million KRW per store). Starting in September, the district office parking lot (200 spaces) will be fully open 24 hours. Mayor Seong Jang-hyun stated, “The fundamental solution to revitalizing the Itaewon commercial district is the end of COVID-19. Until that day comes, we will prepare for the post-COVID era alongside residents at the forefront of administration.”

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