Four Markets Including Hwagae Market Under Restoration
Support for Damage Recovery Funds and Business Normalization
Ministry of SMEs and Startups Requests Disaster Relief Fund from Local Governments
[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 12th that flooding damage occurred in 30 traditional markets nationwide due to heavy rain, and emergency restoration has been completed for 26 of these markets.
Currently, emergency restoration is underway at four locations, including Hwage Market in Hadong, Gyeongnam, and Gurye 5-Day Market in Jeonnam. To restore the damage at Hwage Market and Gurye 5-Day Market, the Ministry is operating an on-site financial support team in cooperation with local SME offices, local governments, the Small Enterprise and Market Service, and regional credit guarantee foundations.
Additionally, with the cooperation of the Korea Gas Safety Corporation, special gas safety inspections are being conducted at Ilsuk Market and Juksan Market in Ansan, Gyeonggi Province, as well as Hwage Market and Gurye 5-Day Market.
The Ministry of SMEs and Startups is providing emergency support together with local governments and related organizations to facilitate the early normalization of traditional markets damaged by the heavy rain. Emergency management stabilization funds and special disaster small business guarantees are being provided to support the funds needed for damage recovery.
For areas declared as special disaster zones, support measures include reduced loan interest rates (2.0% → 1.5%), extended repayment periods (2 years grace, 3 years repayment → 3 years grace, 4 years repayment), increased special guarantee limits (70 million KRW → 200 million KRW), increased special guarantee ratios (85% → 100%), and preferential guarantee fees (0.5% → 0.1%, fixed guarantee fee rate applied).
To expedite the restoration of damaged facilities, the Ministry requested the relevant local governments to prioritize the budget for the "Traditional Market Facility Modernization Project" for the affected traditional markets. Plans are also underway to promote win-win cooperation activities by connecting Samsung Electronics and LG Electronics with traditional markets to provide repair and inspection support for home appliances damaged by flooding.
Support for promotional and marketing expenses necessary for business normalization is being considered for traditional markets severely affected by flooding. The prompt disbursement of the Small Business Disaster Relief Fund (a fund established in cities and provinces under the Disaster Relief Act, providing 2 million KRW per store) has been requested from each city and province.
Jo Juhyeon, Director of the Small Business Policy Office at the Ministry of SMEs and Startups, stated, "Traditional markets, already struggling due to the COVID-19 crisis, have been further burdened by flooding, causing deep distress among merchants. We plan to concentrate all policy capabilities to minimize damage and ensure early normalization. Ministry and related agency staff will remain on-site at the damage locations to provide continuous consultation and support for resolving difficulties until affected merchants can stably return to their livelihoods."
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