Busan City Implements Three Major Support Measures for Small Businesses Affected by COVID-19

50% Rent Reduction for Public Facilities for 3 Months
New and Expanded Special Fund Support for Small Business Owners
Dongbaekjeon 10% Cashback Extended Until July

Busan City Hall

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Jong-hyo] On the 9th, Busan City announced that it will implement the ‘Three Major Burden Reduction Measures for Small Business Owners’ to ease the burdens of local small business owners and self-employed individuals struggling due to the impact of the novel coronavirus infection (COVID-19).

First, rent reduction will be promoted. For shared properties such as underground shopping malls and public institution facilities, rent will be reduced by 50% each month for three months. A total of about 3,800 stores are expected to receive benefits worth approximately 7.3 billion KRW. Additionally, landlords who sign win-win agreements with tenants to reduce rent will receive 50% support on property tax up to a limit of 2 million KRW. Traditional markets that reduce rent will be supported with environmental improvement project funds.

Special fund support will also be newly established and expanded. In addition to existing special fund support measures, ‘Special Rent Fund for Small Business Owners (50 billion KRW)’ and ‘Small Enterprise Management Stabilization Fund (50 billion KRW)’ will be newly created, injecting a total of 700 billion KRW in special funds into local small business owners and small and medium enterprises.

Policies to prevent economic activity contraction will also be strengthened. The local currency Dongbaekjeon will be increased from the current scale of 300 billion KRW to around 1 trillion KRW, and the 10% cashback will be extended until July.

Oh Keo-don, Mayor of Busan, said, “Although this is a challenging situation that requires consideration not only of the current difficulties but also of long-term aspects, we will do our best to think together with citizens and overcome this to create a better Busan.”