Gyeonggi-do Supports Local Currency for 'Good Landlords' Who Lower Rent

Landlords in the province who have reduced or plan to reduce rent
Payment ranging from at least 100,000 to up to 500,000 won

Reference photo [Gyeonggi-do]

[Asia Economy Reporter La Young-cheol] Gyeonggi Province is newly launching the 'Good Landlord Support Project,' which provides incentives to good landlords in the province who reduce rent starting this year.

The province plans to provide incentives worth between 100,000 KRW and 500,000 KRW in 'Gyeonggi local currency' issued by the relevant city or county to landlords in the province who have voluntarily reduced or plan to reduce rent within this year.

After landlords (building owners) sign a mutual growth agreement with tenants (small business owners) and submit proof of rent reduction, incentives will be distributed differentially based on the rent reduction amount following a review process.

Landlords who reduce rent by 500,000 KRW to less than 1,000,000 KRW will receive 100,000 KRW; those who reduce by 1,000,000 KRW to less than 7,000,000 KRW will receive 300,000 KRW; and those who reduce by 7,000,000 KRW or more will receive 500,000 KRW in incentives.

However, landlords must own commercial buildings subject to business registration under the 'Commercial Lease Protection Act,' and tenants must be small business owners as defined by the 'Small Business Support Act.' Buildings violating relevant laws such as the Building Act are excluded from eligibility.

The province has allocated a total budget of 1 billion KRW this year and estimates that about 2,500 landlords will be able to participate in the Good Landlord Support Project.

In particular, since the incentives are paid in local currency that can only be used at traditional markets and small business stores in the respective regions, it is expected to help increase sales in local commercial districts and revitalize the local economy.

Jo Jang-seok, Director of Small Business Support, said, "Overcoming the COVID-19 crisis and restoring daily life is possible only when everyone works together," adding, "We will continue to make efforts at the provincial level to create a neighborhood economy where both good landlords and small business owners can smile."

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