Seodaemun-gu Makes Every Effort to Revitalize Local Economy Hit by COVID-19

Sales Decreased by 30-50% Due to COVID-19... Recommendation for 'Traditional Market COVID-19 Special Fund' Loans... Local Tax Payment Extended Up to 1 Year for SMEs Closing Due to COVID-19... District Office Cafeteria Used by About 900 People per Session to Close 4 Days a Month

[Asia Economy Reporter Jongil Park] Seodaemun-gu (Mayor Moon Seok-jin) is making every effort to revive traditional markets and alleyway commercial districts to recover the local economy, which has been stagnated due to COVID-19.

Since the outbreak of COVID-19, the district has formed and operated a monitoring team consisting of managers from six traditional markets in the area and the president of the Sinchon shopping district to assess the damage to small business owners and devise countermeasures.

Analysis of the number of visitors and sales trends by this team revealed that sales have decreased by 30-50% compared to before.

Accordingly, the district conducted market disinfection and provided masks and hand sanitizers to each market and shopping district to emphasize the image of a "safe market free from COVID-19, a clean market where visitors can feel secure." Traditional market managers educated merchants on preventive measures.

Seodaemun-gu also plans to support loans and local tax incentives. To alleviate financial difficulties and stabilize management for small and medium-sized business owners, the "Seodaemun-gu Small and Medium Enterprise Development Fund" offers loans up to 200 million KRW per company at an annual interest rate of 1.8%. For small-scale businesses with good credit but insufficient collateral, special credit guarantee loans up to 50 million KRW are provided at an annual interest rate of 2-4.5%.

Traditional market merchants affected by sales declines due to COVID-19 are recommended to receive loans of up to 10 million KRW from the Korea Inclusive Finance Agency's "Traditional Market COVID-19 Special Fund."

Additionally, in cooperation with the Seoul Credit Guarantee Foundation Seodaemun branch, low-interest loans at an annual rate of 1.5% are actively supported for food service and lodging businesses directly affected by COVID-19.

Furthermore, the district extends the local tax filing and payment deadlines from six months up to one year for small business owners who have to close due to being included in the movement paths of confirmed or quarantined COVID-19 cases.

The district also issues 5 billion KRW worth of Seodaemun Love Gift Certificates, which are local currency usable only in Seodaemun-gu, at a 10% discount to increase sales for small business owners and revitalize the local economy.

To enhance the image of Seodaemun-gu’s traditional markets and shopping districts as safe places to visit and to support increased sales for local small business owners, Seodaemun-gu office employees are also participating.

The district has increased the number of days off for the district office cafeteria from twice a month to four times a month until next month, encouraging cafeteria users to visit small local restaurants and traditional markets more frequently.

The district office cafeteria serves about 900 people daily. On cafeteria closure days, hygiene education for kitchen staff and improvements to the cafeteria environment are promoted.

In addition, the district plans to pay a certain amount of employee welfare points in Seodaemun Love Gift Certificates and encourage concentrated use within February and March.

Mayor Moon Seok-jin of Seodaemun-gu stated, “We will devote ourselves to disinfection until COVID-19 ends so that residents can safely use traditional markets and alleyway shops, and we will do our best to actively manage finances and support management stabilization to revitalize the local economy.”

Seodaemun-gu Office Job and Economy Division (330-8185)