"1240 Traditional Market Stores Flooded... Up to 70 Million Won Financial Support"

Ministry of SMEs and Startups Urgently Supports Traditional Markets Damaged by Heavy Rain
Minister Lee Young Holds Emergency Inspection Meeting and Visits Sites
Emergency Restoration Funds, Appliance Repairs, and Priority Budget Execution
Damage Report Center Opened... "Efforts to Prevent Recurrence"

Minister Lee Young of the Ministry of SMEs and Startups visited Yeongdong Traditional Market in Nonhyeon-dong, Seoul on the 10th to console merchants affected by the heavy rain.
[Photo by Ministry of SMEs and Startups]

[Asia Economy Reporter Kim Bo-kyung] The government will provide emergency restoration funds of up to 10 million KRW per market to traditional markets damaged by recent heavy rains. Small business owners in the affected traditional markets will receive financial support of up to 70 million KRW at an interest rate of 2%.

The Ministry of SMEs and Startups announced that as of the 10th, a total of 62 traditional markets and about 1,240 stores have suffered various degrees of damage due to heavy rains concentrated in Seoul and the metropolitan area since the 8th.

There were 34 markets in Seoul, 23 in Gyeonggi, and 5 in Incheon where store leaks and parking lot flooding occurred. No casualties have been reported so far.

The Ministry of SMEs and Startups stated that it has established and is operating an emergency system with local governments, regional SME and Startup offices, and the Small Enterprise and Market Service to assess the damage situation.

Minister Lee Young of the Ministry of SMEs and Startups held an emergency inspection meeting at the Seoul Regional SME and Startup Office on the 9th, and on the morning of the 10th, visited Yeongdong Traditional Market in Seoul to inspect the site and listen to merchants about the damage and difficulties.

The Ministry of SMEs and Startups will launch emergency support together with local governments and related organizations to restore the affected traditional markets as soon as possible.

First, to enable rapid restoration of traditional markets, emergency restoration funds of up to 10 million KRW per market will be provided. For markets participating in the Specialized Market Development Project, the limit of the infrastructure construction budget will be expanded from the existing 20% to up to 50% to be used for restoration costs.

Additionally, with the cooperation of large corporations such as Samsung and LG, free repair support for home appliances like refrigerators and air conditioners will be provided, along with manpower support involving soldiers and volunteers for emergency restoration.

The Ministry of SMEs and Startups plans to request cooperation from the relevant local governments to prioritize the execution of the 'Traditional Market Facility Modernization Project' budget for the affected traditional markets.

Damaged traditional markets can receive government policy funds. The Small Enterprise and Market Service offers support of up to 70 million KRW at a 2% interest rate to small business owners affected by disasters. Small business owners can apply to the Small Enterprise and Market Service after obtaining a disaster confirmation certificate from the local government.

For traditional market merchants who have received a disaster confirmation certificate, a one-year extension of loan maturity will be supported for existing Small Enterprise and Market Service loans.

The Regional Credit Guarantee Foundations provide disaster recovery guarantees up to a limit of 200 million KRW to small business owners who have obtained a disaster confirmation certificate or damage verification from local governments. The guarantee ratio is increased to 100%, higher than the general guarantee of 85%, and the guarantee fee is preferentially set at 0.5% (fixed).

Merchants enrolled in the Yellow Umbrella Mutual Aid can receive interest-free disaster loans up to 20 million KRW and may suspend premium payments for up to six months.

The Ministry of SMEs and Startups has opened a heavy rain damage reporting center at the Seoul, Gyeonggi, and Incheon Regional SME and Startup Offices to receive damage reports. Disaster confirmation certificates will be issued at this center.

When restoration is completed, events with prizes and performances worth up to 10 million KRW will be held. For damaged traditional markets listed on online platforms, a free delivery event is planned for September, and a special sales exhibition gathering products from all affected markets will be held in October.

The Ministry of SMEs and Startups also plans to use this damage as a lesson to prevent recurrence by encouraging the replacement of aging flood-damaged facilities and promoting flood and windstorm insurance enrollment among traditional market merchants.

Minister Lee said, "Until merchants affected by the flood can return to their livelihoods stably and as quickly as possible, staff from the Ministry of SMEs and Startups and related organizations will remain on-site to provide all necessary support without hesitation."