3200 Seoul Subway Shops to Receive 50% Rent Reduction for 6 Months

Seoul Metro Applies Retroactive Benefits from February for Small Business and Small Merchant Tenants

[Asia Economy Reporter Jo In-kyung] Seoul Metro announced on the 2nd that it will reduce the rent by 50% for six months to support subway store tenants who are struggling due to the prolonged COVID-19 pandemic.

The rent reduction period is from February to July of this year. The rent for February and March, which has already been fully billed, will be retroactively adjusted by not billing the rent for April and May, and only 50% of the rent will be billed for June and July.

The support targets are tenants who meet the 'small business and small merchant sales standards' under the Enforcement Decree of the Framework Act on Small and Medium Enterprises, such as retail businesses with an average annual sales of 5 billion KRW or less, and restaurants with 1 billion KRW or less.

Rent will also be reduced for ordinance facilities operated by socially vulnerable groups, but stores directly operated by corporate businesses that do not qualify as small merchants are excluded. In addition, tenants who have delayed rent payments three or more times by the due date between February and July will be subject to contract termination and thus cannot receive rent reduction benefits.

The city expects that, based on its own analysis, approximately 20.1 billion KRW in rent will be reduced over six months for a total of 3,196 stores, averaging 3.35 billion KRW per month, providing substantial benefits to the store owners.

Kim Sang-beom, President of Seoul Metro, said, "We have prepared a plan to reduce subway store rents to participate in the nationwide 'Good Rent' movement," adding, "As a public enterprise, we will do our best to fulfill our social responsibility and overcome this crisis together with the citizens."