District Mayor Chae Visits Daerim Central Market and Yeongdeungpo Station on Weekends... Increases SME Development Fund by 40% to 3.5 Billion Won... Expands Loan Support for Small Business Owners
[Asia Economy Reporter Park Jong-il] Yeongdeungpo-gu (District Mayor Chae Hyun-il) has launched a proactive response to revitalize the local economy, which has been weakened due to concerns over the spread of the novel coronavirus infection.
The district has begun preparing measures to alleviate the difficulties faced by market merchants and small business owners who are struggling due to decreased foot traffic and reduced consumption caused by the sudden adverse impact of the novel coronavirus.
Accordingly, on the weekend of the 8th, Chae Hyun-il, Mayor of Yeongdeungpo-gu, visited Daerim Central Market, where the number of visitors had decreased due to concerns about the novel coronavirus. Mayor Chae checked the stagnant market situation, met with merchants to comfort their difficulties and grievances, and purchased goods, demonstrating leadership to ease the anxiety of residents.
On the 9th, Mayor Chae Hyun-il conducted on-site inspections of multi-use facilities such as department stores and movie theaters around Yeongdeungpo Station, where weekend foot traffic is high. He checked whether the novel coronavirus safety guidelines and preventive measures were well implemented and listened to difficulties and opinions from facility managers.
Mayor Chae Hyun-il’s efforts to gauge public sentiment continue. Starting from the 10th, he plans to visit local restaurants that serve as community gathering places to listen to residents’ opinions and work to alleviate anxiety caused by the novel coronavirus.
Additionally, Mayor Chae will visit Yeongdeungpo Underground Shopping Center and Samgakji area to personally purchase goods using the ‘Yeongdeungpo Love Gift Certificate,’ assess public sentiment on site, hold meetings with small business owners at their workplaces to gather opinions, and strive to resolve management difficulties.
Along with these efforts, the district is also implementing various economic revitalization measures such as loan support for small and medium-sized enterprises, increased fiscal spending in the first half of the year, and local tax relief.
First, to ease financial difficulties and stabilize management for small and medium-sized enterprises, the Small and Medium Business Development Fund, which provides low-interest loans of up to 300 million KRW per company at an annual interest rate of 1.8%, will be expanded by 40% from the original 2.5 billion KRW to 3.5 billion KRW. Applications will be accepted earlier from the 12th to the 26th at the Job Economy Division (☎2670-3426).
A special credit guarantee loan worth 6.8 billion KRW will also be provided for small-scale micro-business owners with good credit but insufficient collateral, offering low-interest loans of up to 200 million KRW at 2.5% interest.
Furthermore, the district will actively promote the 24 billion KRW youth-exclusive startup fund operated by the Small and Medium Business Corporation for young entrepreneurs under 39 years old, including small manufacturers in machinery and metal industries who have been in business for less than three years, to support small businesses and small merchants facing difficulties.
The district plans to expedite project orders and shorten payment deadlines to ensure that fiscal spending acts as a catalyst for local economic revitalization, raising the first half-year rapid execution target rate from 57% to 62%, thereby executing an additional budget of 10.7 billion KRW.
Additionally, from the 15th of this month to April 15th, a two-month period of concentrated use of employee welfare points will be operated to increase the usage rate in the first half of the year from 58.9% last year to 70% this year, contributing to the local economy.
District office employees have also stepped up to support local small business owners. The number of days the in-house cafeteria is closed has been increased from once a month to four times a month, encouraging employees to visit small restaurants around the district office instead. The quarterly ‘Traditional Market Day’ event is now held monthly to help traditional market merchants who have been hit hard by the novel coronavirus.
The district issued the ‘Yeongdeungpo Love Gift Certificate’ on the 15th of last month and sold 581 million KRW worth by the 7th of this month, ranking first among Seoul’s autonomous districts. The district encourages employees to purchase and use the certificates with welfare points and diversifies promotional channels for general consumers to increase sales for small business owners.
Moreover, local tax relief measures such as extending the deadline for filing and payment by six months to up to one year, deferral of collection, and exemption from delinquency penalties will be provided to taxpayers directly or indirectly affected by business closures due to visits by confirmed or quarantined novel coronavirus patients.
Mayor Chae Hyun-il of Yeongdeungpo-gu said, “We will do our best to support small and medium-sized enterprises and small business owners, who are the foundation of local economic development, to overcome the crisis caused by the novel coronavirus by closely monitoring livelihoods on site, listening to public sentiment, actively managing finances, and supporting management stabilization.”
Planning and Budget Division (☎2670-7521)
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