Gyeonggi-do Resident-Centered Livelihood Recovery Project Providing Opportunities for Small Business Owners and Satisfaction for Consumers

Gyeonggi-do Launches This Year's 'MinSaeng Recovery Let's Go! Project'
Boosting Traditional Markets and Local Businesses Through Big Sales and Local Currency
Reducing Burden with Special Loan Extensions for Small Business Debt Repayment and Introducing 'Gyeonggi Small Business Cheer Up Card'

Under the administration of the 8th Gyeonggi Province, with the core principle that stabilizing people’s livelihoods is the highest goal and key value of provincial governance, various livelihood recovery projects with high public impact were promoted this year as well. We reviewed the diverse support policies implemented by Gyeonggi Province this year to alleviate household grocery burdens and boost sales for small business owners.

‘Minseong Recovery Let's Go!’ project poster. Provided by Gyeonggi-do

◇ Reviving Gyeonggi and Supporting Small Businesses through the ‘Livelihood Recovery Let’s Go!’ Project

This year, Gyeonggi Province launched the ‘Livelihood Recovery Let’s Go!’ project to support small business owners and ordinary citizens struggling with high interest rates and inflation. The project was divided into two parts: ‘Revive Gyeonggi (Gyeonggi Salligo)’ and ‘Cheer Up Small Businesses (Sosangongin Himnaego)’.

From May to June, the ‘Livelihood Recovery Let’s Go! Revive Gyeonggi’ campaign was conducted in collaboration with the Gyeonggi Market and Commercial District Promotion Agency. Through the ‘Big Sale’ event, 154 local commercial districts including traditional markets such as Pyeongtaek Tongbok Market and Osan Osaek Market, as well as neighborhood shopping districts, offered various attractions and entertainment linked with local festivals and tourism. Sales promotion events such as payback and prize giveaways were also held. Toward the end of the year, from November to December, support for various consumer promotion events including cultural performances, discounts, and delivery fee subsidies is ongoing for 194 locations including traditional markets, neighborhood commercial communities, and small business associations.

Additionally, the ‘Big Local Currency’ initiative increased the local currency recharge limit from 1 million KRW to 2 million KRW, raised the holding limit from 1.5 million KRW to 3 million KRW, and increased the discount rate from 6% to 7%, thereby encouraging consumption in neighborhood shopping districts.

The ‘Livelihood Recovery Let’s Go! Cheer Up Small Businesses!’ project mainly includes the issuance of Korea’s first purchase-only card for small business owners, extension of principal repayment periods for loans taken during the COVID-19 pandemic, and marketing support through major e-commerce platforms.

Since September 30, the province has been implementing the ‘Special Guarantee for Extension of Debt Repayment for Medium- and Low-Credit Small Business Owners.’ This policy extends the principal repayment period for small business owners whose repayment was due after the COVID-19 special support and reduces financial burdens through interest subsidies.

Small business owners with medium to low credit ratings can receive repayment extension benefits for loans up to 100 million KRW per business. Over six years (3 years grace period, 3 years principal installment repayment), they benefit from a 2% interest subsidy and a 1% guarantee fee exemption, resulting in an annual financial cost reduction of 3%. The program plans to support a total of 300 billion KRW and has received strong responses from small business owners, with 11,438 cases and 177.452 billion KRW in guarantees executed as of November 22.

Alongside this, the province supported sales channels and brand promotion for 129 small and medium enterprises in the province through cooperation with Gmarket Co., Ltd. under the ‘Small Business Sales Channel Support Project Linked with Large E-commerce Platforms,’ providing banner ads and promotional coupons.

The ‘Gyeonggi Small Business Cheer Up Card,’ introduced nationwide for the first time, was launched on November 6 through IBK Industrial Bank and is currently in a pilot phase. This card is dedicated to supporting operating expenses for small business owners, with a maximum limit of 5 million KRW per business. It offers six months of interest-free benefits, no annual fees or guarantee fees, tax deductions, and up to 500,000 KRW cashback. Gyeonggi Province has submitted the next year’s budget plan to the Gyeonggi Provincial Assembly for review to supply a total of 100 billion KRW to about 20,000 small business owners in the province starting next year.

◇ From Increasing Local Currency Discount Rates to Improving Small Business Management Environments

Before Chuseok, Gyeonggi Province temporarily raised the local currency discount rate by city and county from 7% to 10%. The Gyeonggi Market and Commercial District Promotion Agency also ran a payback promotion offering 10% cashback in Onnuri gift certificates or local currency for customers who purchased over 50,000 KRW at traditional markets and neighborhood shopping districts.

As of November 15, the province provided 372.2 billion KRW in small business support funds, including store rental loans and startup funds, to 11,289 businesses over the year. Refinancing funds for small businesses (switching from high-interest loans to low-interest loans) were provided to 2,338 businesses totaling 53.5 billion KRW. The province also supported the revitalization of traditional market commercial districts through projects such as four traditional market innovation model sites, two Gyeonggi-style commercial district promotion zones, and modernization of 11 traditional markets. Additionally, 3,432 small businesses received management environment improvement support, and 1,273 closed small businesses were provided with specialized consulting to strengthen competitiveness.

Heo Seung-beom, Director of the Economic Office, stated, “We implemented various support measures this year for small business owners and self-employed individuals struggling with high interest rates and inflation. Next year, we will focus all our efforts on revitalizing local currency and promoting the small business exclusive card to recover the livelihood economy.”

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