Gwanak-gu, Emergency Support for Local Economy Stagnated by COVID-19

Rapid execution of 120 billion KRW in old budget for consumption and investment sectors, expansion of credit guarantees and financial support for small business owners... Departmental 'Unexpected Busy Days' increased to twice a month, expanded discount limits and promotion for Gwanak Sarang Gift Certificates... Strengthened crackdown on unfair trade such as hoarding, specialized disinfection in traditional markets

District Mayor Park Jun-hee of Gwanak-gu held a meeting with merchants at Jowon-dong Penguin Market on the 13th to listen to their difficulties.

[Asia Economy Reporter Jongil Park] Gwanak-gu (Mayor Park Junhee) is strengthening support measures for small business owners to revitalize the local economy shaken by COVID-19 and minimize the damage to self-employed individuals and small business owners.

Gwanak-gu is collaborating across all departments (dong offices) to implement 12 detailed projects in five major areas until the situation ends: ▲ rapid budget execution ▲ promotion of local economic revitalization projects ▲ expansion of support such as funds for small business owners ▲ promotion of infectious disease prevention activities ▲ crackdown on unfair trade practices such as hoarding.

First, the district plans to rapidly execute about 120 billion KRW of district finances in the first half of the year in consumption, investment, and job sectors, including early issuance of construction orders and activation of advance payments, so that public finances serve as a catalyst for a virtuous cycle in the local economy.

Also, each department will expand the “Going Market Day” program, where officials visit traditional markets and alley stores in their respective dongs to purchase meals and goods, from once a month to twice a month. During lunch hours, they will actively use local restaurants throughout the district to contribute to revitalizing the local economy.

Efforts are also being made to increase the usage rate of the Gwanak Sarang Gift Certificate, a mobile local currency linked with Zero Pay. The district announced that the discount purchase limit, previously 500,000 KRW per person per month at a 10% discount, will be expanded to 1,000,000 KRW until the end of April.

Additionally, the district is focusing on promoting the usage methods and discount benefits of the Gwanak Sarang Gift Certificate through various media such as village buses and apartment complexes to encourage citizen participation and strengthen recruitment of affiliated stores where the gift certificates can be used.

All Gwanak-gu employees are also actively participating in using the gift certificates by purchasing Gwanak Sarang Gift Certificates within March and using them early in the first half of the year to help increase sales for small business owners.

Furthermore, the district is expanding credit guarantees and financial support to ease the management burden of self-employed individuals and small business owners in the area, which has been depressed due to the COVID-19 crisis.

First, through financial support agreements with Woori Bank and the Seoul Credit Guarantee Foundation, a total guarantee scale of 14.5 billion KRW has been secured to support credit guarantees for small business owners lacking collateral.

The guarantee ratio has been expanded from the original 85% to 100% for amounts up to 30 million KRW and 95% for amounts exceeding 30 million KRW. The guarantee rate has been reduced from the previous 1.2~2% to 0.5~0.8% to provide support.

Also, out of a total of 2.5 billion KRW in loans from the Small and Medium Enterprise Development Fund, which supports loans up to 200 million KRW per company at a low interest rate of 1.5% per year, 2 billion KRW will be provided early in the first half of the year, with plans to expand the total loan scale and number of loans according to demand.

To prevent excessive anxiety among residents caused by price increases of quarantine supplies, the crackdown on unfair trade practices such as hoarding is also being strengthened. For this, the Price Stabilization Management Task Force is conducting joint inspections and crackdowns on market disorder acts such as hoarding of health masks, hand sanitizers, and hand cleansers at a total of 763 locations including large supermarkets, pharmacies, and convenience stores in the area.

In addition, the district is investing 100 million KRW to support events and marketing of traditional markets and shopping districts, conducting daily professional disinfection inside 21 traditional markets, about 1,600 individual stores, and common spaces in shopping districts to ensure residents visiting traditional markets can shop with peace of mind.

Mayor Park Junhee said, “We will mobilize all administrative power of the district office and financial resources of local financial institutions to provide all possible support to self-employed individuals and small business owners directly affected by the COVID-19 crisis. Please do not be greatly discouraged and let us overcome this together.”