Gokseong-gun, All-Out Effort to Revive Local Economy Overcoming COVID-19

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] Gokseong-gun, Jeollanam-do is making every effort to minimize the damage to local small business owners facing management crises due to the spread and prolongation of COVID-19.

According to Gokseong-gun on the 12th, following the first comprehensive economic revitalization measures in response to COVID-19 implemented in February, the county is now carrying out 52 departmental action tasks as a second phase to revive the local economy.

These mainly focus on areas closely related to residents' lives, such as easing the management burdens of small business owners and farmers.

First, to reduce the management burden on local merchants and farmers, interest on loans from the Resident Income Support Fund will be reduced by 50% until the end of the year.

For businesses affected by closures, local tax collection will be deferred for six months. Additionally, usage fees and rental fees for public facilities and shared properties will be reduced by 50%, and the 50% discount on fees for three traditional markets and agricultural machinery rentals will be extended until December.

From April to June, small business owners also received a 50% discount on business water and sewage fees, extensions on environmental improvement charge payment deadlines, a 25% discount on three months of road occupancy fees, and property tax reductions proportional to rent reductions for landlords who lowered rents.

Efforts are also being made to stimulate the economy and boost consumption. The mobile Simcheong gift certificate is being sold year-round at a 10% discount. Additionally, paper gift certificates will be sold at a 10% discount until October in celebration of the Chuseok holiday.

Moreover, customers who pay more than 100,000 KRW in a day can receive a 10,000 KRW cashback, and among those who pay 5,000 KRW or more with mobile gift certificates, various amounts of gift certificates will be awarded through a lottery.

In the first half of the year, Mayor Yoo Geun-gi returned 30% of his salary for three months to share the burden, and county employees also conducted a three-month campaign to use gift certificates, purchasing 443 million KRW worth of gift certificates.

Various supports have been provided for residents facing livelihood threats. In April, when COVID-19 spread significantly, 1.055 billion KRW in temporary living support funds, 2.267 billion KRW in Jeonnam-type COVID-19 emergency living expenses, and 31 million KRW in emergency support funds for taxi workers were paid in Simcheong gift certificates to stabilize low-income households.

Also, the farmers' and fishermen's public interest allowance of 3.8 billion KRW, originally planned to be paid in two installments, was paid in a lump sum in May.

Comprehensive support policies are also being implemented for residents operating or preparing to start businesses within the region.

A total of 670 million KRW was provided as small business management environment improvement subsidies for facility improvements and replacement of outdated equipment for small business owners facing management difficulties.

Additionally, 420 million KRW was supported for youth job creation and new middle-aged entrepreneurs.

Furthermore, through special guarantees for small business owners, 600 million KRW in guarantee support was provided with a limit of 30 million KRW per business, along with loan support of 500 million KRW for business expansion or reconstruction, 50 million KRW for remodeling, and 30 million KRW for management stabilization funds.

Emergency management stabilization funds are also provided for small and medium-sized enterprises (SMEs) and small business owners. Through the Jeollanam-do Small and Medium Business Promotion Department and the Credit Guarantee Foundation, SMEs can receive loans up to 300 million KRW (500 million KRW for preferred companies), and small business owners up to 200 million KRW, with a 2% low-interest rate.

To promote SME products and improve environments, 5 million KRW per company is supported. Online marketing costs and card fees are supported up to 500,000 KRW each, and new subscribers to the Yellow Umbrella insurance receive a hope incentive of 10,000 KRW monthly for one year.

To strengthen the social safety net for sole proprietors, employment insurance and industrial accident insurance premiums are also supported. Employment insurance premiums are supported at 30% for three years, and industrial accident insurance premiums are supported at 30-50% for two years depending on the grade.

As group education has become difficult, customized consulting visiting small business owners is also being conducted.

Additionally, 5 million KRW per group is provided to revitalize small business communities, and facility improvement projects and standing table support for food hygiene businesses are being promoted.

In July, the Small Business Hope Center was opened in the Gokseong-eup downtown area to provide policy project guidance and accept applications for small business owners. Various information for small business owners is also provided online through the Gokseong Startup Nest portal, blog, Facebook, and KakaoTalk channel.

Efforts are also being made to maintain employment and create new jobs. Public jobs support families in urgent need of livelihood, and 37 projects are being promoted as part of the Hope Job Project for regional economic recovery.

Residents released from quarantine due to COVID-19 have received 14 million KRW in living expenses so far. Temporary support for childcare for children under seven years old was provided to 669 people, totaling 275 million KRW. To protect dining establishments, the county office restaurant is closed one day per week.

Active protection of local businesses is also underway. Contracts for construction, services, and goods procurement ordered by the county are made with local companies whenever possible.

Loans of up to 200 million KRW at low interest rates are provided after assessing the damage situation of the travel industry.

For cultural tourism interpreters unable to work due to COVID-19, activity fees are paid in advance, and local travel agencies are used for institutional events. Additionally, travel agencies that attract group tourists receive incentives ranging from 300,000 KRW to 450,000 KRW per bus.

Farmers receive disaster management operating funds of up to 50 million KRW at an interest rate of 1.8%. For flower farmers facing difficulties due to event cancellations, agricultural management expenses such as seedling costs, pesticide costs, and fertilizer costs are supported until the end of the year.

Efforts to promote agricultural product consumption are also active. A direct transaction market at Shinsegae Department Store was held for five days, recording sales of 55 million KRW, and a flower consumption campaign generated sales of 12 million KRW.

Through the local food seasonal agricultural product package purchase campaign, sales worth 15 million KRW were made, and 97 million KRW worth of organic agricultural product packages were delivered to student households through school meal delivery.

Rapid execution of projects closely related to daily life is also being strongly promoted. Of the 229.4 billion KRW target amount, 62% or 143.2 billion KRW was executed in the first half of the year. While promoting prepayment and advance purchase, 75 billion KRW was spent through rapid execution in consumption and investment sectors. Plans are to continue rapid execution in consumption and investment to revitalize the stagnant local economy.

Additionally, disaster confirmation certificates were promptly issued to small business owners affected by the heavy rains in August, and joint support for loan application reception was provided with related agencies. For small business owners whose workplaces were damaged, 2 million KRW from the provincial disaster relief fund will be supported.

A county official said, “Due to infectious disease prevention measures such as gathering restrictions and bans, the lives of small business owners are very difficult. As social distancing level 2 is extended and the local economy is stagnating, we ask all residents to consume daily necessities within the region to minimize economic damage.”