Contributing to Strengthening the Economic Foundation of Small Business Owners Struggling Due to Prolonged COVID-19... Gwanak-gu Supports '5 Billion Won' to Cover COVID-19 Disaster Relief Blind Spots
[Asia Economy Reporter Park Jong-il] Gwanak-gu (Mayor Park Jun-hee) announced that it is promoting preferential contracts with local businesses when concluding private contracts to strengthen the economic foundation of small business owners in the region and revitalize the stagnant local economy amid the prolonged COVID-19 situation.
In the case of local governments, according to the Local Contract Act, contracts under 20 million KRW (or under 50 million KRW for women-owned or disabled-owned businesses) can be concluded as private contracts without competitive bidding.
The district is prioritizing the review of the possibility of contracting with local businesses from the planning stage of orders to increase contracts with local companies when concluding such private contracts.
Additionally, by continuously updating the status of local businesses and sharing it with ordering staff, and making efforts to discover new local companies, last year the district concluded a total of 411 private contracts worth 19.9 billion KRW with local businesses.
This shows a significant increase compared to the 40% ratio of private contracts with local businesses in 2018, accounting for 52% in number and 64% in amount.
In particular, starting this year, a public contract text notification service will be implemented to inform contract parties of the progress at each stage via text messages, including contract conclusion status, submitted documents, expected completion date, and scheduled payment date.
Meanwhile, to ensure transparency in contracts, the district discloses all contract processes from order planning to contract conclusion on its website. It also stated that it is thoroughly strengthening fairness to prevent concentration on specific companies when promoting private contracts with local businesses.
A district official said, “We will continue to expand the ratio of private contracts with local companies and strive to revitalize the local economy, which has been struggling due to COVID-19.”
Gwanak-gu (Mayor Park Jun-hee) announced that it will provide 5 billion KRW of its own disaster relief funds to directly and practically support vulnerable groups affected by COVID-19 who have been overlooked.
The support targets a total of 1,739 businesses, including those excluded from government and Seoul city disaster relief payments and taxi drivers (individual and corporate) who require additional support, as well as about 7,700 unemployed youth and taxi workers.
Considering the prolonged difficulties caused by COVID-19, the district is speeding up to provide targeted support payments before the Lunar New Year holiday.
Accordingly, it plans to provide 10 million KRW each to seven village bus companies facing operational crises due to COVID-19, 1 million KRW each to 189 daycare centers and 27 local children's centers, and between 500,000 KRW and 1 million KRW to 53 senior care facilities before the holiday.
Meanwhile, 533 religious facilities will receive quarantine supplies worth 500,000 KRW, which will be delivered sequentially to each facility.
Small business owners who decided to close due to difficulties caused by COVID-19 will receive 500,000 KRW in damage support funds, and about 2,700 individual and corporate taxi workers severely affected by COVID-19 will receive 400,000 KRW in disaster relief funds.
Additionally, about 5,000 unemployed youth aged 19 to 34 who graduated within two years will be supported with 500,000 KRW worth of Gwanak Love Gift Certificates as employment encouragement funds.
A district official said, “We will do our best to ensure that this disaster relief fund is provided promptly without any setbacks to stabilize residents' lives and help the local economy regain vitality.”
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