Gwanak-gu, Full Effort to Support Small Business Owners Affected by COVID-19

Third Support This Year: 16,32 Small Businesses Affected by Gathering Ban Receive 700,000 Won Each, 1.142 Billion Won Supported... SME Development Fund Loan Interest Rate Reduced to 0.8%, Total 4.219 Billion Won Loan Executed... Gwanak Sarang (Himkok) Gift Certificates Sold Out Early in 5 Rounds, Achieving 90% Payment Rate

[Asia Economy Reporter Jongil Park] Gwanak-gu (Mayor Park Junhee) is dedicating efforts to revitalize the stagnant local economy by providing support funds and ultra-low interest loans to establish a stable management foundation for small business owners in the area who are struggling due to the prolonged COVID-19 pandemic.

First, the district swiftly implemented the "Gwanak-gu Small Business Owners Gathering Ban Damage Support" project targeting karaoke rooms, PC rooms, indoor sports facilities, and academies that suffered business losses due to gathering bans under social distancing measures to prevent the spread of COVID-19.

This project, which accepted applications for two weeks starting November 16, was conducted for small business owners whose business locations are in Gwanak-gu, who registered their business before October 11, and who were operating as of the support fund payment date.

The district provided 700,000 KRW per business to a total of 1,632 businesses, supporting 1.142 billion KRW, and completed all payments early on December 7, earlier than originally planned, focusing on rapid support for affected small business owners.

Alongside this, the district also provided loans from the Small and Medium Enterprise Development Fund to small and medium-sized enterprises and small business owners facing difficulties in fund management due to COVID-19.

By significantly lowering the interest rate from 1.5% to 0.8%, loans totaling 4.219 billion KRW were executed for 56 businesses, and an additional 300 million KRW was contributed to the Seoul Credit Guarantee Foundation to expand the special credit guarantee for small business owners to 4.5 billion KRW.

In 2021, the district plans to allocate 4 billion KRW from the Small and Medium Enterprise Development Fund to continue providing prompt policy funds to small business owners.

Additionally, to stimulate consumption and revive the stagnant local economy, the district issued the mobile local currency "Gwanak Sarang Gift Certificate" based on Zero Pay and the delivery app Zero Delivery Union exclusive "Gwanak Himkok Gift Certificate" with benefits ranging from 7% to 10%, issuing a total of 23.1 billion KRW over five rounds.

Offering various benefits such as events, discounts, and 0% payment fees, these gift certificates received great response from residents, selling out all 23.1 billion KRW early, and achieving a 90% payment rate of the issued amount, significantly contributing to increased sales for small business owners.

Furthermore, through various support projects such as Seoul City’s self-employed survival fund support providing 25.2 billion KRW to 18,056 people, reopening support for 131 stores visited by confirmed patients with 300 million KRW, and the Seoul-type Good Landlord Project supporting 139 stores with 74 million KRW, the district has concentrated efforts to ensure more small business owners can benefit.

Mayor Park Junhee stated, “I hope this support can be of some help to small business owners and self-employed people who are going through difficult times due to the unexpected resurgence of COVID-19,” and added, “We will continue to do our best to develop various policies to revitalize the local commercial district and stabilize small business management.”