Seoul City to Reduce Rent by Up to 60% for 10,000 Stores in Underground Shopping Centers to Support Small Businesses

Expecting 50.5 Billion KRW Support Impact for 11,000 Stores Including Underground Shopping Centers and DDP Fashion Mall

Due to the prolonged COVID-19 pandemic, the difficulties faced by small business owners and self-employed individuals are increasing. On the 1st, the Euljiro underground shopping mall in Seoul was quieter than usual. Photo by Mun Honam munonam@

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government has decided to reduce rental fees for public property by up to 60% after review by the Public Property Deliberation Committee to support small business owners struggling due to the prolonged COVID-19 pandemic. They will also implement measures to reduce common maintenance fees and extend the rental payment deadline until June.

Additionally, if business closures or forced suspensions due to COVID-19 prevent usage, the contract period will be extended by the corresponding duration, or the rent will be fully waived for that period.

The key points of the support measures announced by Seoul on the 24th are: ▲ up to 60% rent reduction based on the degree of damage ▲ reduction of common maintenance fees ▲ deferral of rent payments.

First, Seoul will reduce rent by up to 60% for six months for small business owners operating in subway and underground shopping areas owned by Seoul and its investment and affiliated institutions during the first half of the year, based on the extent of damage. This rent reduction is expected to reduce rent by 48 billion KRW across 11,000 stores. Next, among maintenance fees, the portion of common maintenance fees covering security and cleaning staff wages will be temporarily waived for six months, which is expected to provide up to 2.5 billion KRW in support.

Furthermore, the payment deadline for rent on city-owned property will be extended until June within the usage or lease period. This extension aims to ease the burden of paying annual rent in a lump sum. Eligible recipients are small business owners as defined by the “Framework Act on Small and Medium Enterprises” and the “Act on the Protection and Support of Small Businesses,” who lease stores in underground shopping areas, DDP Fashion Mall, subways, and other locations owned by Seoul and its investment and affiliated institutions.

Lee Byung-han, Director of the Finance Bureau, said, “We hope this livelihood measure will help reduce the pain of small business owners affected by the prolonged COVID-19 pandemic and assist in overcoming the COVID-19 crisis.”

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