Heavy Rain Damages 412 Stores in 8 Traditional Markets... Ministry of SMEs and Startups Mobilizes All Resources for Flood Recovery

Facility Restoration and Financial Support
for Rapid Resumption of Operations
in Traditional Markets Damaged by Torrential Rain

The Ministry of SMEs and Startups announced that, as of 8:00 a.m. on July 22, approximately 412 stores in eight traditional markets nationwide had suffered varying degrees of damage due to record-breaking heavy rainfall that began on July 16. Stores in three markets in Chungnam, two in Gwangju, one in Daegu, one in Gyeonggi, and one in Gyeongnam experienced flooding and other damages; however, as of now, no casualties have been reported.

To continuously assess the damage and recovery status, the Ministry has established and is operating a close emergency response system in cooperation with local governments, regional offices of the Ministry of SMEs and Startups, and the Korea Small Enterprise and Market Service. In particular, for Dangjin Traditional Market (with approximately 170 stores) and Samga Market (with approximately 70 stores), which were confirmed through internal investigations to have suffered severe flood damage, staff from the regional offices, the Korea Small Enterprise and Market Service, and local governments were dispatched to assist with recovery efforts, including waste disposal and on-site cleaning.

No Yongseok, Vice Minister of the Ministry of SMEs and Startups, is inspecting flood damage sites on the 20th at Samga Market in Hapcheon, Gyeongnam.

Vice Minister No Yongseok visited Dangjin Traditional Market on the 17th and Samga Market in Hapcheon on the 20th to inspect the sites. After meeting with affected merchants and hearing directly about the damage and their difficulties, he stated that the Ministry would work closely with relevant local governments and agencies to support recovery efforts.

The Ministry plans to provide emergency support in cooperation with local governments and related organizations to help traditional markets affected by the recent torrential rains return to normal operations as quickly as possible. First, to prevent safety accidents involving electricity and gas due to flooding, the Ministry will request emergency inspections from Korea Electric Power Corporation, Korea Gas Safety Corporation, and Korea Fire Protection Association. For electrical and gas facilities that require repair or replacement, support will be provided swiftly through a fast-track process. Normally, it takes about 2.5 months from application to receive support for electrical and gas facilities, but under this emergency support, the Ministry plans to simplify procedures and provide funding to local governments within 10 days.

The Ministry is also operating one-stop support centers to provide prompt assistance to merchants at Dangjin Traditional Market and Samga Market in Hapcheon, which suffered extensive damage. These centers, staffed by personnel from regional offices of the Ministry, local branches of the Korea Small Enterprise and Market Service, regional credit guarantee foundations, and basic local governments, are investigating the damage and helping merchants quickly obtain disaster confirmation certificates, which are essential for applying for financial support.

Traditional markets affected by the disaster are eligible for government policy funds. The Korea Small Enterprise and Market Service offers disaster-affected small business owners loans of up to 100 million won at a 2% interest rate. To apply, small business owners must first obtain a disaster confirmation certificate from their local government and then apply to the Service. If the area is declared a special disaster zone and the Ministry’s Disaster Response Review Committee decides to extend loan maturities, merchants in traditional markets who have received disaster confirmation certificates will also be eligible for a one-year extension on existing loans from the Korea Small Enterprise and Market Service.

In addition, the regional credit guarantee foundations will provide disaster recovery guarantees of up to 300 million won to small business owners who have received either a disaster confirmation certificate or a damage verification certificate from their local government. The guarantee rate will be increased to 100%, compared to the usual 85% for general guarantees, and the guarantee fee will be preferentially set at 0.5%. Merchants who are members of the Yellow Umbrella Mutual Aid Fund and have received disaster confirmation certificates can receive up to 20 million won in interest-free disaster loans, and mutual aid payments will be provided with compound interest.

Choi Wonyoung, Director General for Small Business Policy at the Ministry of SMEs and Startups, stated, "Merchants are suffering greatly from the flood damage, and the Ministry will focus all policy resources, together with relevant ministries, local governments, and related organizations, to minimize losses and restore normal operations as quickly as possible."

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