Rent Relief for Small Business Owners Leasing Public Property During Economic Downturns

Previously Only Allowed in Cases of "Disaster Damage"
Ministry of the Interior and Safety to Apply Retroactively This Year Through Official Notice

Going forward, small business owners who lease public property will be able to receive rent relief even during an economic downturn.

The Ministry of the Interior and Safety announced on August 26 that a revised enforcement decree of the "Public Property and Goods Management Act," which includes these measures, was approved at the Cabinet meeting.

Previously, rent reductions were only possible in the event of disaster damage. With the revision, rent reductions are now also possible during economic crises such as recessions. During an economic crisis, the support is limited to small business owners as defined by the Framework Act on Small Enterprises and to small and medium-sized enterprises (SMEs) as defined by the Framework Act on Small and Medium Enterprises.

If the Minister of the Interior and Safety determines that it is necessary to overcome an economic crisis during a recession, the Minister will announce the applicable period for rent relief. Then, the head of the local government will autonomously determine the rate, scope, and extent of the reduction through a review by the Public Property Review Committee. The rent relief period can be retroactively applied depending on the economic downturn situation.

Following the approval of this revision, the Ministry plans to establish a notice regarding the "Applicable Period for Rent Relief on Public Property for Small Business Owners, etc." The rent reduction period for public property is set to apply from January 1 to December 31 of this year.

As a result, small business owners and SMEs who lease public property to operate cafes, restaurants, convenience stores, and similar businesses are expected to see their rent burden reduced by up to 80% (with the rent rate lowered from 5% to 1%).

Yoon Hojoong, Minister of the Interior and Safety, stated, "We have enhanced the effectiveness of the public property rent reduction system to support small business owners who are struggling to make a living in these difficult economic times," adding, "We will work closely with local governments to ensure the system is swiftly implemented on the ground to support the survival and employment of small business owners."

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