Gangdong-gu, Measures to Revitalize the Local Economy Stagnated by COVID-19

Emergency Meeting on March 17 for Revitalizing Local Economy Amid COVID-19... Expansion of District Office Cafeteria Closure Days, Increased Purchase Limits for Gangdong Love Gift Certificates, Local Tax Support, etc.

[Asia Economy Reporter Park Jong-il] Gangdong-gu (District Mayor Lee Jeong-hoon) held an emergency countermeasure meeting on the 17th to revitalize the local economy, which has been stagnated due to the COVID-19 infectious disease.

This meeting was convened under the leadership of the district mayor amid growing concerns that the local economy is increasingly stagnating due to the cancellation of various events and minimizing external visits as a result of the COVID-19 outbreak.

Moreover, the livelihoods of small business owners such as restaurants and traditional markets are becoming increasingly difficult, making it urgent to prepare countermeasures.

In particular, the district plans to respond to the COVID-19 infectious disease with thorough prevention measures that could be called ‘overreaction,’ while aiming to ‘protect residents’ daily lives and alleviate anxiety to revitalize the local economy.’

First, the Gangdong-gu Office cafeteria, which has an average daily usage of about 500 people, will expand its closure days from twice a month to 4 to 5 times a month starting in March to promote local restaurants. All district office employees will unite to use nearby restaurants to breathe new life into the stagnated commercial area.

Also, the Gangdong Love Gift Certificates, which can only be used within Gangdong-gu and are expected to contribute to the local economy, will temporarily increase the individual purchase limit from 500,000 KRW to 1,000,000 KRW per month starting February 20, and efforts to promote their use will be pursued.

The Small and Medium Business Development Fund, which supports low-interest loans for small and medium-sized enterprises and small business owners facing financial difficulties, will focus on executing more than 1.8 billion KRW (60%) out of the 3 billion KRW loan scale in the first half of this year.

In addition, the rapid execution of local finances in the first half of 2020, including maintenance work for district and community center buildings and education expense subsidies, is expected to reach approximately 150.1 billion KRW, which is 57% of the total target amount of 263.4 billion KRW.

The ‘Food Promotion Fund’ of 210 million KRW, established to reduce the economic burden on small food-related self-employed businesses and create a healthy dining environment, will provide loans at a low interest rate of 1% per annum starting February 17 until the budget is exhausted, targeting the Gangdong-gu branch of the Korea Foodservice Industry Association and food service business owners.

Additionally, hand sanitizers will be purchased and distributed to 1,030 small restaurants with a total floor area of less than 30㎡.

Traditional markets, which serve as the compass of the local economy, have completed the first joint disinfection with residents at six markets within the district.

This week, the district mayor plans to visit traditional markets to actively encourage their use.

Furthermore, if taxpayers face difficulties due to confirmed COVID-19 cases, quarantined individuals, or business closures caused by visits from confirmed patients, local tax support measures such as deadline extensions, collection deferrals, and tax audit postponements will be implemented.

The district plans to actively support affected taxpayers by extending deadlines for reporting taxes such as acquisition tax, extending payment or collection deadlines for property tax, extending delinquent tax enforcement such as property seizure and sale, and postponing investigations for companies subject to tax audits.

Lee Jeong-hoon, Mayor of Gangdong-gu, said, “I hope tailored support measures that can provide practical help to local small business owners and small and medium enterprises suffering sales losses will be devised,” and urged, “At the same time, I ask for thorough quarantine measures without blind spots so that residents can engage in economic activities with peace of mind.”

The district is making every effort to prevent COVID-19 from entering the area by conducting extensive disinfection activities at about 620 locations within the district, including welfare facilities used by vulnerable groups such as daycare centers, local children’s centers, and senior citizen rooms, as well as multi-use facilities with high foot traffic such as traditional markets, public restrooms, and cultural and sports facilities.

If major symptoms of the infectious disease such as fever, cough, sore throat, or difficulty breathing appear, please contact the Disease Control Headquarters Call Center (☎1339) or the public health center (☎3425-6713~5).