'Good Landlord Movement' Spreads... Rent Reduced for 30,044 Stores

Published 15 Apr.2020 09:00(KST)

Source=Ministry of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 15th that the "Good Landlord Movement," which reduces the rent of stores operated by merchants in traditional markets, shopping districts, and individual shops struggling due to the novel coronavirus infection (COVID-19), is spreading nationwide.

As of the 9th, through this Good Landlord Movement, it has been identified that 3,425 landlords in 513 traditional markets, shopping districts, and individual shops nationwide have reduced (including freezing) the rent of a total of 30,044 stores. Considering that many landlords are reluctant to disclose the fact of rent reduction, the Ministry of SMEs and Startups explained that the actual number of landlords who have reduced rent is expected to be much higher.

The Good Landlord Movement started this February in Jeonju Hanok Village. At the first tally of good landlords on February 20, there were 137 participating landlords and about 1,790 target stores, but these numbers have increased significantly. As of the 9th, the number of landlords surged about 25 times, and the number of target stores increased about 17 times.

By region, the area with the highest number of participating landlords was Busan (751 landlords, 21.9% of all participating landlords). The region with the most target stores was Seoul (10,455 stores, 34.8% of all target stores). Based on the number of landlords, the most common rent reduction rate was between 20% and less than 30% (26.4%). The rent reduction period was mainly 2 to 3 months (45.3%).

Additionally, the participation rate of the Good Landlord Movement in a total of 1,694 registered or recognized traditional markets and shopping districts was about 19.4% (329 locations). The number of target stores was 24,875, which is about 13.0% of all leased stores (approximately 192,000) within traditional markets and shopping districts.

By region, Jeonnam (58.0%), Jeonbuk (40.6%), Jeju (35.7%), Gangwon (34.8%), and Chungbuk (33.9%) showed relatively high participation rates in traditional markets and shopping districts.

The Ministry of SMEs and Startups plans to support fire safety packages such as sprinkler installation and replacement of old electrical wiring for 20 traditional markets and shopping districts where a majority of stores (more than 20% of all stores) have reduced rent. Support targets will be selected early next month through document and on-site evaluations.

Kwon Daesu, Director of the Small Business Policy Bureau at the Ministry of SMEs and Startups, emphasized, "We deeply thank the landlords who participated in the Good Landlord Movement during this difficult time due to COVID-19, and this movement will be a great hope for small business owners to overcome difficulties and stand up."

Director Kwon also said, "To continue the spread of the Good Landlord Movement, we will conduct comprehensive promotions and do our best to revitalize traditional markets and shopping districts through initiatives such as one institution (government/public institution) one market sisterhood partnerships."