Rent Deferral for 'Seongdong Anshim Sangga'
Published 16 Mar.2020 06:41(KST)
Seongdong-gu Supports COVID-19 Response with Rent Deferral and Late Fee Reduction for 12 'Seongdong Safe Stores' and Six-Month Management Fee Waiver for 38 Businesses to Overcome Crisis Together
[Asia Economy Reporter Park Jong-il] Seongdong-gu (Mayor Jung Won-oh) is postponing the rent payment deadline until the end of August and waiving late fees for tenants of the Seongdong Anshim Shopping Center in Seongsu-dong, who are struggling due to the spread and prolonged impact of COVID-19.
The 'Seongdong Anshim Shopping Center' is the nation's first public safety shopping center symbolizing anti-gentrification policies. It is a commercial space leased by Seongdong-gu at 50-70% of the surrounding market price for a long term of 5 to 10 years, allowing tenants, small business owners, and young entrepreneurs who are pushed out by rising rents to operate their businesses with peace of mind.
As the building owner, Seongdong-gu is postponing rent payments due this year until the end of August and waiving late fees for 12 neighborhood living facilities within the Seongdong Anshim Shopping Center, including restaurants, art galleries, flower shops, and bookstores, which are directly affected by COVID-19.
For all 38 businesses occupying the 8-story building, basic management fees will be waived for six months. Although the management fees were originally about 35% cheaper than those of surrounding shopping centers, this waiver is expected to reduce the burden by between 100,000 KRW and 1,000,000 KRW per month per unit.
Additionally, a partial amendment to the 'Seoul Special City Seongdong-gu Shared Property and Goods Management Ordinance,' which includes provisions to maintain the existing low rent levels, will be prepared by April to continuously alleviate tenants' burdens.
Jung Won-oh, Mayor of Seongdong-gu, said, "Mutual cooperation between landlords and tenants is urgently needed in difficult times," adding, "I hope this support will be of some help to the merchants and store owners operating in the Anshim Shopping Center, and we will do our best to overcome this crisis together with the residents."
Besides the Seongdong Anshim Shopping Center, the district also reduced monthly rent by 25% for six months from March to August for neighborhood living facilities within the Seongsu 1-ga 2-dong Public Complex Building.
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