Seoul City Focuses Support on Small Businesses and Traditional Markets... Oh Se-hoon Visits Local Shopping Districts on Site

Mayor Oh Visits Hongje Alley Shopping District, Expresses Commitment to "Supporting Small Business Vitality Recovery"
Revitalizing Alley Markets through Local Brand Commercial Area Development and Youth Alley Startup Support

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government will provide intensive support until the end of next year for small business owners and traditional market merchants who have faced prolonged difficulties due to nearly two years of the COVID-19 pandemic. The plan is to revive neighborhood commercial districts through systematic support that combines three key elements: fostering unique and vibrant alleyway markets, innovative sales strategies to restore consumer confidence, and financial support for stable management.

Accordingly, on the 8th, Mayor Oh Se-hoon visited the Hongje Alley Shopping District in Seodaemun-gu and the Inwang Market area to listen to the voices of on-site small business owners and traditional merchants. He expressed his commitment to revitalizing lively neighborhood commercial districts and supporting the recovery of small business vitality. Enhancing the competitiveness of small businesses, revitalizing traditional markets, and restoring alleyway commercial districts are also included among the 20 core tasks in the recently announced 10-year Seoul Master Plan, ‘Seoul Vision 2030.’

The support measures will be intensively implemented from November this year through December next year. The main points of this plan are ▲ revitalizing alleyway commercial districts by fostering neighborhood commercial areas where people want to stay ▲ restoring consumer confidence through sales strategies that increase revenue and reduce costs ▲ stabilizing management through safe financial support that lowers financial burdens.

First, by fostering neighborhood commercial districts where citizens want to linger, the vitality of traditional markets and alleyway commercial districts will be restored. Specialized commercial districts will be developed to attract consumers while carefully improving inconveniences that have hindered shopping. By 2030, 200 local brand commercial districts will be designated and receive tailored support. Among areas already well-known like Yeonnam-dong and Seongsu-dong, 100 will be selected as ‘Strengthening Zones,’ and 100 with potential but not yet activated will be designated as ‘Promotion Zones.’ Seoul plans to invest 6.2 billion KRW next year to select 12 districts.

Youth entrepreneurs who will breathe new life into alleyway commercial districts will also be nurtured. The core is to select 100 prospective young entrepreneurs who have the will and ideas but lack funds or know-how and provide them with intensive support. For traditional markets that visitors have avoided due to parking difficulties and aging facilities, 31.6 billion KRW will be invested to improve the shopping environment conveniently. Additionally, support will be provided for fire insurance subscription and repair of old electrical wiring (3.8 billion KRW) to ensure the safety of merchants and consumers.

Furthermore, to restore consumer confidence weakened by the prolonged COVID-19 pandemic, various events will be held, including the issuance of Seoul Love Gift Certificates purchasable at a 10% discount and special sales fairs for small businesses and traditional markets. The plan is to activate consumption and help small businesses increase sales immediately. Comprehensive support will also be provided to help small business owners and traditional market merchants actively enter and operate stably in the online market in line with changing consumer trends.

Stable financial support for the management recovery of small business owners will also be provided. The Seoul Metropolitan Government has been providing an additional 300 billion KRW from November following the 2 trillion KRW support in June under the ‘Four No’s (No Interest, No Guarantee Fee, No Collateral, No Paperwork) Safe Finance’ program. Next year, a total of 2 trillion KRW will be secured for safe financial support with long-term low interest rates and no worries about interest rate hikes to help small business owners manage stably.

In addition, low-interest refinancing loans (100 billion KRW) for high-interest multiple debtors, loan repayment deferrals, and maturity extensions (600 billion KRW) will be promoted to ease the burden on low-credit small business owners. Furthermore, 500 small business owners who have worked diligently but are on the verge of closure due to unavoidable reasons will be selected to provide opportunities for re-starting businesses, and if business closure is necessary, up to 2 million KRW per person will be supported as business closure expenses.

Han Young-hee, Seoul’s Director of Labor, Fairness, and Coexistence Policy, said, “We plan to provide intensive and meticulous support so that small business owners, who have been deeply sighing over plummeting sales and accumulating debts due to the prolonged COVID-19 pandemic, can find hope. We will continuously implement on-site, systematic support measures for small business owners to help neighborhood commercial districts regain vitality and for small business owners to quickly recover their daily lives.”

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