[Interview] Seong Jang-hyun, Mayor of Yongsan-gu, "Full Effort to Revive Local Businesses in the 'Post-COVID-19' Era"

Up to 1 Million KRW Support for Multi-Use Facilities like PC Bangs, Karaoke Rooms, and Sports Centers... Issuance of Yongsan Love Gift Certificates Worth 5 Billion KRW to Boost Small Business Sales

[Asia Economy Reporter Jong-il Park] “Stopping briefly at a red light at a crosswalk is because we know the signal will change eventually. The COVID-19 situation is the same.”

Sung Jang-hyun, Mayor of Yongsan District, said this in an interview with a reporter, adding, “We now need to prepare for the post-COVID-19 era.”

Mayor Sung stated, “It has been about 100 days since COVID-19 first occurred in our country. Amid the unprecedented global pandemic, Korea is recognized as a model country effectively managing COVID-19,” but he also emphasized, “The prolonged situation has severely impacted the local economy.”

In response, Yongsan District has introduced various policies to revitalize the local commercial sector weakened by COVID-19.

To directly support small business owners who suffered the most damage, the district is promoting the Good Landlord Movement, which reduces rent. Through the voluntary participation of landlords cooperating with small business owners, 288 businesses have received monthly rent reductions. The district also plans to reduce rent by up to 50% for six months for small business owners operating in district-owned buildings, in line with the Good Landlord Movement.

For companies visited by confirmed COVID-19 cases, the district supports rent and labor costs incurred during closure periods up to a maximum of 1.95 million KRW. It also assists with reopening expenses such as material costs, promotional expenses, and service labor costs (up to 3 million KRW per store). During the period of strict social distancing, multi-use facilities like PC rooms, karaoke rooms, and sports facilities that suspended operations are receiving support of up to 1 million KRW. Additionally, Yongsan Love Gift Certificates worth 5 billion KRW are issued to stimulate sales for small business owners.

Alongside this, the district actively responds to the economic downturn caused by COVID-19 by investing in the Small and Medium Enterprise Development Fund and the Job Fund. The SME Development Fund loan scale was expanded by 133% compared to the previous year, totaling 8 billion KRW. The loan interest rate for small business owners affected by COVID-19 was temporarily reduced significantly from 1.2% to 0.8%. This measure reduces interest burdens by about 100 million KRW for 561 companies.

Of the Job Fund, the first of its kind nationwide with a scale of 11 billion KRW, 2 billion KRW is allocated to provide low-interest loans to youth enterprises, helping to alleviate financial difficulties. The district also ensures employment stability for residents through a public-private cooperative job project worth 360 million KRW annually.

Regarding employment stability projects for vulnerable groups, since April, the district has been providing employment retention support funds for unpaid leave workers at small businesses. With a total budget of 740 million KRW, this aims to prevent unemployment and support the livelihoods of workers employed by small businesses. Depending on the number of unpaid leave days, up to 1 million KRW per person is paid. Support plans for freelancers and other special types of workers are being developed according to guidelines from the Ministry of Employment and Labor.

Mayor Sung Jang-hyun of Yongsan District emphasized, “The end point of COVID-19 is still unclear,” and added, “Until stability is achieved, we will provide appropriate budgets tailored to the situation to ensure that those who truly need support do not miss out, in line with additional government and Seoul city measures for public livelihood stabilization.”