Yangcheon District Invests 17 Billion Won in "Lifecycle Tailored Support" for Small Businesses

From Startup Preparation to Growth and Crisis Management
21 Projects Across 5 Key Areas

Yangcheon District in Seoul (District Mayor: Lee Gijae) has announced a large-scale support plan for small business owners who are struggling due to the prolonged "three highs"—high exchange rates, high inflation, and high interest rates. This year, the district will invest 17 billion won to launch a full-scale "lifecycle tailored support" system, covering 21 projects across five areas: startup preparation, growth assistance, crisis management, market expansion, and environmental improvement.

According to the district's analysis of local commercial areas last year, there were 1,287 new business openings and 1,612 closures within the district, with the closure rate exceeding the opening rate. This vicious cycle—where business closures, driven by decreased sales from sluggish consumption, rising labor and rent costs, and growing loan interest burdens, leads to job losses and commercial district stagnation—continues to repeat itself.

Lee Gi-jae, Mayor of Yangcheon District Office, is giving a greeting at the opening ceremony of the Yangcheon Public O. Provided by Yangcheon District Office.

Shared Offices, Youth Stores, and Startup Schools in Operation

For youth stores, the district will subsidize 50% of rent (up to 1 million won per month) for one year, provide remodeling costs of up to 10 million won, and support up to 1 million won for promotional expenses. The Yangcheon Startup Support Center will operate a "Startup School" with customized training at different levels and a "one-stop startup consultation" service.

"Yangcheon Public Orchard," a public shared office space that opened near Yeomchang Station on Line 9 last year, currently houses 18 companies, and four more will be recruited until the 20th of this month. The district also plans to expand startup infrastructure by establishing additional shared offices on the Omokgyo KT site and the newly built Yangcheon Post Office site.

On the 7th, the district will hold a startup expo, providing policy guidance, financial counseling, consulting booths, investor briefings, and guest lectures all in one place. Programs such as "Local Creator," which offers menu branding, storytelling, and online strategy training for food-service entrepreneurs, and the "Startup Networking Party" will also be run in parallel. The newly established "Capacity Building Bootcamp" will select ten offline small businesses and provide intensive practical training in local branding, customer relationship management (CRM), and event planning.

0.8% Ultra-Low Interest Loan and Issuance of 10.4 Billion Won in Gift Certificates

Small business owners suffering from financial difficulties will be able to access 3.5 billion won in ultra-low interest loans at an annual rate of 0.8% from the SME Promotion Fund. Manufacturers can borrow up to 300 million won, and retailers up to 80 million won, with repayment terms of up to five years. Food businesses will receive an additional 200 million won in facility improvement funds at a low interest rate of 2% per year.

Next year, road occupancy fees will be reduced by 25%, and newly established "on-site consulting" services will send experts directly to struggling small businesses to offer customized solutions.

Through the "Bag Manufacturer Support Center," the only domestic hub for bag manufacturing, four local manufacturers will be supported in developing new products and launching crowdfunding sales channels. By designating "Good Price Stores" and "Model Restaurants," the district aims to build trustworthy commercial zones, and it will issue 10 billion won in "Yangcheon Love Gift Certificates" and 400 million won in "Yangcheon Ttaenggyeoyo Gift Certificates" to boost local consumption.

This year, 2 billion won will be invested to promote facility modernization at 19 traditional markets and alley-type shopping districts.

Lee Gijae, Yangcheon District Mayor, stated, "We will be a strong pillar for small business owners so they can wisely overcome tough business conditions and leap forward again," adding, "We will do our best to establish a sustainable local commercial ecosystem and make Yangcheon District the center of economic vitality."

Notice for the “2026 Yangcheon Start-up Expo.” Provided by Yangcheon District.

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