Mayor Shin Sangjin: "Middle East Crisis Is a National Economic Emergency... Government Must Declare Disaster Immediately"

Seongnam City Announces Emergency Economic Measures in Response to Middle East Crisis
Gift Certificate Discount Raised to 10%, Special Guarantee Programs Expanded
410 Billion Won Emergency Budget Allocated, Support Prepared for 410,000 Households
60% Rent Reduction for Small Businesses Extended Until 2026
Mayor Shin: "410 Billion Won Emergency Budget Allocated... Confronting the Economic Crisis Head-On"

"We hope the central government will make the bold decision to declare a national disaster, so that the burden on ordinary citizens caused by the Middle East crisis can be eased and local governments can take the lead in providing support."

Seongnam Mayor Shin Sangjin held a press conference at Moran Hall in City Hall on the 31st, announcing an 'Emergency Economic Plan' in response to the military tensions in the Middle East. Photo by Lee Jonggu

On the 31st, Seongnam Mayor Shin Sangjin held a press conference at Moran Hall in City Hall to announce "Emergency Economic Measures" in response to military tensions in the Middle East, emphasizing this point. Mayor Shin expressed his firm determination to preemptively block the impact that external instability factors, such as rising international oil prices and exchange rate fluctuations, could have on the local economy.

During the press conference, Mayor Shin called for the central government to play its part, while also presenting an immediate compensation system at the city level.

Mayor Shin promised, "If the government declares the current situation a national economic crisis and proclaims it a disaster, Seongnam City will promptly allocate a supplementary budget of 41 billion won to provide 100,000 won per household to all 410,000 households in accordance with relevant laws."

Seongnam City has already completed the administrative preparations for this, and plans to swiftly implement the measures in line with the government's decision.

Practical financial measures were also introduced for small business owners and companies, who are the capillaries of the local economy.

To stimulate consumption, Mayor Shin announced that the discount rate for the Seongnam Love Gift Certificate would be raised from the current 8% to 10%, and the monthly issuance volume would be increased from 2.5 billion won to 3 billion won. The individual purchase limit will also be raised from 300,000 won to 500,000 won per month to further encourage consumption and the circulation of funds within the region.

To strengthen financial support for small business owners struggling due to rising raw material prices and shrinking consumption, the city will advance the scheduled 1.2 billion won in special guarantees for the second half of the year to April and allocate an additional 500 million won, expanding the total guarantee program to 5 billion won.

In addition, the city will maintain the policy of a 60% reduction in shared property rent and management fees, which was implemented during COVID-19 in 2020, for about 1,100 small business owners operating in public markets until 2026. Additional support measures are also under consideration for approximately 5,100 merchants across 83 privately operated traditional markets and neighborhood commercial districts.

Seongnam Mayor Shin Sangjin held a press conference at Moran Hall in the city hall on the 31st and announced an "Emergency Economic Measure" in response to the military tensions in the Middle East. Photo by Jonggu Lee

Furthermore, the budget for the "Hope Pack" project, which supports small business owners with improvements to store management environments, enhancements in safety and hygiene, and the transition to eco-friendly stores, will be increased from 280 million won to 455 million won to further strengthen support for business stability.

Regarding support for companies, the city plans to use the Special Management Fund for Middle East Crisis Response to provide up to 500 million won per affected company, apply a 2.0 percentage point interest subsidy to reduce financial costs, and offer a one-year grace period followed by four-year installment repayment terms to ease repayment burdens. The criteria for international logistics cost support will also be expanded to companies with less than 30 million dollars in exports in the previous year, with up to 1.2 million won per company provided, and export insurance premiums of up to 1 million won per company will be supported to strengthen export risk management.

In addition, the city will continuously monitor gas station price trends, strengthen on-site inspections for illegal oil distribution and price labeling violations, and increase the fuel subsidy rate for about 6,000 cargo trucks from 50% to 70% to ease the burden on the transportation industry. The city will also focus on stabilizing energy and the cost of living for residents.

To ensure field-oriented responses, the city will frequently listen to feedback from small business owners and entrepreneurs, continuously monitor damages in cooperation with related organizations through meetings on Middle East export support, review disaster safety response systems to protect citizens and vulnerable populations, and work to prevent blind spots such as wage arrears.

Since March 13, Seongnam City has been operating a dedicated Emergency Economic Response Task Force, and on the 30th, an emergency meeting was held with all departments and affiliated organizations to comprehensively review trends in international oil prices and exchange rates, local price conditions, and potential damages to businesses and small business owners, and to prepare response measures for each sector.

Mayor Shin Sangjin stated, "If the tensions in the Middle East are prolonged, their impact could spread throughout the local economy. Therefore, we will focus all our efforts on closely managing prices, energy, and business conditions to minimize damage to citizens and companies." He added, "Since the energy crisis cannot be resolved by administrative efforts alone, it is important for citizens to practice energy conservation."

Seongnam Mayor Shin Sangjin held a press conference at Moran Hall in the city hall on the 31st and announced an 'Emergency Economic Measures' in response to the military tensions in the Middle East. Photo by Jonggu Lee

Meanwhile, Seongnam City has secured at least a six-month supply of volume-based waste bags and plans to secure an additional 1.83 million bags. If necessary, the city has also prepared response measures such as allowing waste disposal in regular bags to minimize inconvenience to residents.

Mayor Shin said, "We ask all citizens to refrain from excessive anxiety or panic buying and to maintain their daily routines as usual."

Seongnam City will continue to operate the Emergency Economic Response Task Force until the Middle East crisis stabilizes, monitor the impact on the local economy, and swiftly implement necessary measures.

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