Naju-si Launches All-Out Effort to Revive Local Economy Amid COVID-19 Impact

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Naju City, Jeollanam-do (Mayor Kang In-gyu) has launched an all-out effort to revive the local economy, which has been stagnated due to the impact of COVID-19.

The city announced on the 4th that, as COVID-19 was elevated to the 'serious' stage, it is implementing all available measures to revitalize the local economy, including expanding the cafeteria closure system by 4 times for small business owners and self-employed people facing economic difficulties.

The main support measures include ▲50% rent reduction for traditional markets ▲10% discount sale of Naju Sarang Gift Certificates ▲support for small business owners' management stabilization funds ▲holding meetings with financial institutions to support small merchants ▲1:1 sisterhood agreements between public institutions and traditional markets.

From this month, the city will implement a 50% reduction in store usage fees for six traditional markets (Najumoksagoeul, Yeongsanpo Pungmul, Nampyeong, Seji, Gongsan, Dasi) for four months.

In addition, considering the prolonged COVID-19 situation making normal operations difficult, the city plans to continuously hold meetings with local merchant associations and building owners to reduce rental fees in shopping districts.

To establish a virtuous economic cycle, the discount rate for the Naju Sarang Gift Certificates, which are issued for this purpose, will be raised from the existing 8% to 10% for four months starting mid-this month.

The city plans to pay the first half of the year’s agricultural and fishery public service allowance (worth 9.7 billion KRW) and 30% of the elderly job project participation remuneration in Naju Sarang Gift Certificates to those who wish.

Earlier, city officials purchased Naju Sarang Gift Certificates worth 720 million KRW in January and February to help revitalize the local economy.

For small business owners, a management stabilization fund (loan fund) totaling 20 billion KRW will be created, and from May, interest at 3% per annum will be supported under the condition of a two-year grace period and lump-sum repayment, with a limit of 50 million KRW per company.

On the 5th, the city plans to hold a meeting with local financial institution officials from NH Nonghyup, Livestock Cooperative, Credit Union, and Saemaeul Geumgo to prepare its own financial support measures such as loan repayment deferral, interest reduction, new loans, and preferential interest rates for small business owners.

The city will also actively encourage purchases of local specialty products by public institutions following the signing of 1:1 sisterhood agreements (MOU) between public institutions and traditional markets.

Mayor Kang In-gyu said, “We plan to prepare and implement all available measures that provide practical help to small business owners and traditional markets struggling due to COVID-19,” and added, “We hope citizens will actively use local commercial districts with the mindset of participating in overcoming the damage, especially during difficult times, to realize the value of coexistence.”