Busan to Halve Shared Property Rental Fees... Easing Burden for Small Businesses and SMEs

2,277 Cases of City-Owned Property Leases to Receive 11.7 Billion KRW in Support
Mayor Park Hyungjoon: "Continued Efforts for Local Economic Recovery"

Small business owners in Busan will receive a 50% reduction in shared property rental fees.

On October 20, the Busan Metropolitan Government (Mayor Park Hyungjoon) announced that it will implement a plan to reduce rental fees for city-owned properties to 50% of the existing rate, in order to ease the financial burden on small business owners and small and medium-sized enterprises (SMEs) struggling due to the economic downturn.

This measure was finalized through the City Shared Property Review Committee, based on the Enforcement Decree of the Public Property and Goods Management Act, which was amended on September 2, and the Ministry of the Interior and Safety's official notice. The plan also includes a one-year deferment of rental payment deadlines and a 50% reduction in late fees.

The support targets SMEs and small business owners as defined by the Framework Act on Small and Medium Enterprises and the Framework Act on Micro Enterprises. It is expected to benefit up to 2,277 cases of city-owned shared property leases, with a total support effect estimated at up to 11.7 billion KRW.

The policy applies to rental payments made from January to December of this year. For payments already made, the reduced amount will be refunded, and for new contracts, the reduced rental fee will be applied.

The city will implement three measures simultaneously: a 50% reduction in shared property rental fees, an extension of payment deadlines by up to one year, and a 50% reduction in late fees.

Applications will be accepted by each relevant rental department until November 30. Applicants must submit an application form along with a "Small Business Certificate" or "SME Certificate," and refunds or fee reductions will be processed by December. Certificates can be issued via the SME Status Information System.

Support is limited to businesses that directly use the shared property for their operations. Certain types of businesses, such as general entertainment bars covered by the proviso of Article 5(1) of the Support for Small and Medium Enterprise Establishment Act, and those subject to the minimum rate (1%) under the Busan Metropolitan Government Public Property and Goods Management Ordinance, are excluded. Unauthorized occupants are generally excluded, but if they pay compensation and sign a lease agreement within this year, they may become eligible for the benefits.

Park Hyungjoon, Mayor of Busan, stated, "I hope this reduction measure will provide practical help to small business owners and SMEs suffering from declining sales and increasing closures," adding, "We will do our utmost to support the recovery of the local economy."

Busan City Hall.

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