25% Rent Discount for 6 Months on 'LH Rental Industrial Complexes' in Gyeonggi-do

[Asia Economy (Uijeongbu) = Reporter Lee Young-gyu] Rent for rental industrial complexes managed by Korea Land and Housing Corporation (LH) in Gyeonggi Province will be reduced by 25% for the next six months. Gyeonggi Province previously requested a rent reduction for LH-managed rental industrial complexes to support small and medium-sized enterprises struggling due to COVID-19.

According to Gyeonggi Province on the 1st, Korea Land and Housing Corporation held a board meeting on the 26th of last month and decided to reduce rent by 25% for six months for rental industrial complexes managed by the corporation.

Earlier, in March, a survey conducted by Gyeonggi Province targeting about 300 export companies showed that 70% reported direct or indirect damage due to COVID-19.

In response, Gyeonggi Province officially requested the Ministry of Land, Infrastructure and Transport and LH on March 30th to reduce land rent for rental industrial complexes to alleviate the economic difficulties of export companies.

The Ministry of Land, Infrastructure and Transport also expressed strong agreement with this request and announced an administrative notice to revise the related regulation, the "Guidelines on the Management and Operation of Rental-Only Industrial Complexes," to allow rent reductions when deemed necessary by project operators or rental management agencies to overcome economic crises like COVID-19 or to revitalize local areas.

Once this guideline revision is implemented, a total of 158,000㎡ across three currently occupied rental industrial complexes in the province?Osan Gajang 2, Bucheon Ojeong, and Dongtan General?will benefit from the rent reduction.

Ryu Gwang-yeol, Director of the Gyeonggi Province Economic Office, stated, "This measure is expected to serve as a catalyst to improve the business environment and increase the survival rate of export companies struggling due to COVID-19. We will continue to actively discover and propose various support measures to resolve corporate difficulties and foster small and medium-sized enterprises."