Breathing Room for Small Businesses and SMEs... Pohang Temporarily Reduces Public Property Rental Fees

Rental Fees Reduced to 1% for Small Businesses, 3% for SMEs
Applies Throughout 2025

On November 3, the Pohang city government announced a temporary reduction in the rental fees (usage fees and lease fees) for public property, aiming to ease the burden on local small business owners and small and medium-sized enterprises (SMEs) struggling due to the economic downturn.

This measure follows the amendment to the “Enforcement Decree of the Public Property and Goods Management Act” implemented by the Ministry of the Interior and Safety in September, as well as the “Public Notice on Easing the Burden of Using Public Property for Small Business Owners, etc.”

Accordingly, Pohang has decided to lower the rental fee rate for small business owners from the previous 5% to 1%, and for SMEs from 5% to 3%.

The reduction period will run from January 1, 2025, to December 31, 2025, and applies to small business owners and SMEs who are directly using public property owned by Pohang city. However, businesses such as adult entertainment bars and gambling-related industries are excluded from this support.

Tenants wishing to benefit from the rent reduction must submit an application for rent reduction, along with supporting documents such as a certificate of small business (or SME) status, to the department with which they signed the usage permit or lease agreement by December 19, 2024. The eligibility for the reduction will then be reviewed.

For tenants who have already paid their rent, the reduced amount will be applied retroactively and refunded accordingly.

A Pohang city official stated, “We hope this reduction will provide tangible support for the management stability of local businesses and the revitalization of the local economy,” adding, “We will continue to pursue economic policies that citizens can truly feel.”

Pohang City Hall.

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