Economic Downturn Shrinks Local Markets... Seoul Geumcheon, Seocho, Mapo Districts Intensify Support for Small Businesses

Recently, the survival of local small business owners has been threatened due to the economic recession, high inflation, and high interest rates.

On the 27th of last month, the Ministry of SMEs and Startups and the Small Enterprise and Market Service announced the results of the '2023 Small Business Survey,' revealing that the operating profit per small business enterprise was 25 million KRW, a 19.35% decrease from the previous year (31 million KRW), and sales revenue dropped by 14.91% to 199 million KRW.

Accordingly, autonomous districts such as Geumcheon-gu, Seocho-gu, and Mapo-gu in Seoul are actively working to support the revitalization of the local small business economy.

Yuseong Hoon, Mayor of Geumcheon District (right), is meeting with merchants to listen to their difficulties.

Geumcheon-gu (Mayor Yoo Seong-hoon) has prepared multifaceted support measures ranging from financial assistance to business stabilization and environmental improvement. Financial support includes ▲ interest-free loans ▲ the Yellow Umbrella Hope Incentive Project, and for business stabilization, ▲ the issuance of local currency is being promoted. Environmental improvements are supported through ▲ air conditioner cleaning ▲ facility improvement costs, and additional support such as ▲ road occupancy fee reductions is also provided. Furthermore, the operation of the ‘Alley Economy Support Center’ integrates support information scattered across various institutions to help small business owners more easily receive the benefits they need.

Small business owners can receive loans ranging from a minimum of 10 million KRW to a maximum of 50 million KRW. Geumcheon-gu fully covers the loan interest for one year, and the repayment structure involves a one-year grace period followed by equal installments over four years.

Jeon Seong-su, head of Seocho District Office (center), is inspecting the local commercial area.

Seocho-gu (Mayor Jeon Seong-su) is swiftly implementing the ‘Bustling Market 3 Major Projects’ to create a vibrant local economy where residents are bustling and small business owners are smiling by releasing a record-high 60 billion KRW at the start of the new year.

First, 7.7 billion KRW will be invested in 11 alley commercial districts such as Yangjaecheon-gil, Maljukgeori, and Bangbae Cafe Alley to invigorate them. With a budget increased by 36.5% compared to the previous year, the plan is to fully commit to branding, landmark creation, events, and low-interest financial support tailored to the characteristics of each commercial district. Additionally, efforts will be actively made to stimulate consumption by opening the tightly closed wallets of residents. Seocho Love Gift Certificates (5% discount) and Seocho Ttaenggyeoyo Gift Certificates (15% discount) will be issued annually at 48 billion KRW and 3.6 billion KRW respectively to help recover the weakened consumer sentiment.

Mapo-gu (Mayor Park Gang-su) is promoting a low-interest loan support project totaling 29 billion KRW for small and medium-sized enterprises and small business owners in the area who are struggling due to the economic downturn.

This year, Mapo-gu has prepared loan funds consisting of 25 billion KRW for special credit guarantees and 4 billion KRW from the SME Development Fund. The special credit guarantee project supports small businesses and small business owners facing management difficulties to receive loans at low interest rates, significantly lowering the application requirements for those lacking collateral.

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