Tackling K-Shaped Polarization... Oh Sehoon Vows to Support Weak Links to Build a Strong Economy

The Seoul Metropolitan Government will inject a total of 2.7906 trillion won to provide pinpoint support such as funding for small business owners and vulnerable workers. The city made this decision based on the assessment that so-called K-shaped polarization is deepening, as the warmth of economic recovery is failing to spread. The city will focus on revitalizing the livelihood economy and enhancing economic resilience.

On the morning of the 9th, Mayor Oh Sehoon of Seoul held a briefing at Seoul City Hall and announced the "2026 Livelihood Economy Vitality Support" initiative, centered on these measures. The support package will focus on the so-called "weak links" that are the first to face crisis amid an economic downturn: small business owners, neighborhood commercial districts, consumers, and vulnerable workers. The city will invest a total of 2.7906 trillion won to implement 4 major areas, 8 core tasks, and 25 detailed projects.

Oh Sehoon, Mayor of Seoul, announced on the morning of the 9th that the Seoul Metropolitan Government will implement the "2026 Livelihood Economy Vitality Boost" measures for small business owners and vulnerable workers.

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First, the city will roll out a "tangible support package" for small business owners, who are hit first by the compound crisis of three highs (high exchange rate, high inflation, high interest rates) and one low (low growth). A representative measure is providing 2.7 trillion won in Small and Medium Business Development Funds, the largest amount ever, to secure a robust financial safety net. The "Safe Account," a dedicated overdraft account for livelihood-type self-employed people that was launched last year for the first time nationwide and was fully used up in just 45 business days due to its high effectiveness, will see its support scale expanded from 400 billion won to 500 billion won this year. The number of participating banks has also been increased from 4 to 6 (Shinhan, Woori, KakaoBank, K-Bank, Toss, Hana).

The city will also newly establish and operate a 100 billion won "Vulnerable Business Operator Support Fund" to focus support on "three-high affected companies" whose profitability has deteriorated due to rising costs.

Self-employed people who have taken out high-interest unsecured loans are also expected to catch a breather. The repayment period for the 300 billion won "Hope Companion Fund" (refinancing loans, switching loans) will be extended from 5 years to 7 years (2-year grace period, 5-year equal installment repayment), thereby reducing the burden of principal repayment. For a 30 million won loan, this will reduce the monthly repayment amount by about 125,000 won. In particular, the city will allocate 60 billion won of the Hope Companion Fund as a priority to small business owners experiencing temporary management difficulties due to childbirth, long-term hospitalization, or caregiving, so that they can first receive the benefit of extending the loan maturity by up to 2 years.

The city will also strengthen the "Seoul Early Identification and Preemptive Support Program for At-Risk Small Business Owners," which identifies small business owners showing crisis signals such as a sharp drop in sales or an increase in outstanding loans from secondary financial institutions through financial big data analysis. This year, the city plans to newly identify 3,000 at-risk small business owners and reinforce the post-management system for those who received support in the previous year.

The city has also prepared tailored support measures for traditional markets and neighborhood commercial districts. Under the "Local Brand Commercial District Development Project," which nurtures neighborhood commercial areas with potential into leading local attractions, four additional areas will be selected this year.

The city has drawn up plans to advance its "Commercial District Analysis System" using artificial intelligence (AI) and big data. The goal is to classify commercial districts into developed, growing, and at-risk areas and provide customized policies for each type. This year, the city will build a monitoring system for at-risk commercial districts through big data analysis, and by 2027, it plans to gradually expand the system to include AI-based crisis prediction, self-diagnosis, and customized policy recommendations.

The safety net for traditional markets will also be strengthened. The city will install Internet of Things (IoT)-based electrical fire prevention systems in 1,000 fire-prone shops and create a "365-Day Safe Market" environment by raising the maximum subscription limit for fire mutual aid coverage from 60 million won to 100 million won.

Support measures for ordinary citizens will proceed in parallel. The number of "Good Price Businesses," which offer services at affordable prices, will be increased from the current 1,962 to 2,500. During periods of sharp price hikes or concentrated consumption, such as during abnormal weather events or the kimchi-making season, the city will work with large discount stores to run discount events to lower perceived prices for citizens. In March, the "Comprehensive Fair Trade Counseling Center" will be expanded and reorganized into the "Livelihood Economy Safety Center." Based on the expertise accumulated through 45,779 counseling cases over the past three years, including commercial lease disputes and lending business issues, the center will respond to cases such as "losses from advance payments at gyms and other sports facilities" and "detection of hazardous substances in overseas direct purchases."

In addition, the city will work to strengthen industrial accident prevention for vulnerable workers facing poor working conditions. The "Freelancer Safe Payment Service," which was introduced last year as the first of its kind among public institutions to protect freelancers exposed to unfair contracts and non-payment risks, will be revamped as "Seoul Freelancer On," adding "freelancer activity performance management" and "public job information" to the existing safe payment and dispute counseling services. The city also plans to expand customized support such as health checkups for vulnerable workers in high-risk occupations for work-related illnesses, including delivery, housework, and care work, as well as special medical examinations for urban manufacturing workers in poor working environments and night-shift workers.

Mayor Oh said, "We will stand by the weak links that are the first to waver and the first that have no other choice but to collapse due to K-shaped polarization, and we will go all the way together with them," adding, "We will bring about tangible change until the warning signals in people's livelihoods turn into signals of vitality."

Oh Sehoon, Mayor of Seoul, announced on the morning of the 9th measures to implement the "2026 Plan to Boost Livelihood Economic Vitality" for small business owners and vulnerable workers. Seoul City

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