Gwangjin-gu Allocates 6.6 Billion KRW Supplementary Budget for Small Business Owners and Vulnerable Groups

Key Points of Economic Measures: Expansion of Low-Interest Loan Support for SMEs and Small Business Owners

Approximately 500 Million KRW Allocated to Respond to Cold Wave, Public Utility Fee Increases, and Support for Economically and Energy-Vulnerable Groups

First Supplementary Budget of the Year Urgently Prepared to Enable Swift Crisis Response

[Asia Economy Reporter Park Jong-il] Gwangjin-gu (District Mayor Kim Kyung-ho) has urgently prepared a supplementary budget proposal amounting to 6.6 billion KRW.

The supplementary budget proposal totals 789.4 billion KRW, representing a 0.72% increase compared to this year’s original budget. It includes an additional revenue budget of 5.6 billion KRW and 1 billion KRW secured through expenditure restructuring, resulting in a total of 6.6 billion KRW in additional project funds.

Previously, the district had prepared an original budget of 782.7 billion KRW to realize six core strategies: balanced development, mutual welfare, economic vitality, culture and education, safety and environment, and open communication.

However, due to the ongoing difficult economic conditions characterized by high inflation and high interest rates, combined with unforeseen record cold waves and public utility fee hikes, the district urgently prepared the first supplementary budget of the year to enable a swift response.

First, the district allocated 3.2 billion KRW for support measures for small business owners and revitalization of the local economy. The budget consists of ▲expanding the scale of loan projects for SMEs and small business owners within the district through the accumulation of the SME Development Fund (3 billion KRW) ▲increasing issuance of Gwangjin-type public delivery app exclusive gift certificates to stimulate the local economy (190 million KRW) ▲supporting festivals to revitalize the Mat-ui Street commercial district (10 million KRW).

Notably, 3 billion KRW was invested to expand the scale of a project providing loans at a 1.8% interest rate to SMEs and small business owners. The district plans to increase the project scale from the existing 5 billion KRW to 8 billion KRW to provide substantial assistance.

Next, about 500 million KRW will be invested to support economically and energy-vulnerable groups who are significantly affected by rising prices including public utility fees and abnormal cold wave conditions. The district has additionally allocated funds for ▲electricity and city gas fee support for energy-vulnerable individuals with income below 100% of the median standard income (310 million KRW) ▲additional heating cost support for welfare facilities (8 million KRW) ▲meal support for facilities serving people with developmental disabilities (120 million KRW) ▲new establishment and operation of a social welfare meal management support center (5 million KRW) ▲discovery and improvement of welfare blind spots (13 million KRW).

The electricity and city gas fee support for energy-vulnerable individuals is designed to alleviate burdens in blind spots not covered by emergency support measures from the government or Seoul city. In addition to the expanded support for daycare centers and local children’s centers’ meal costs and cook wages reflected in the 2023 original budget, meal support for facilities serving people with developmental disabilities will be additionally provided.

Furthermore, 78 million KRW will be invested in cultural and sports programs to invigorate residents’ daily lives, and 1.875 billion KRW will be allocated for expanding public daycare centers and urban development-related service projects, continuing efforts for urban development.

Kim Kyung-ho, Mayor of Gwangjin-gu, stated, “This supplementary budget proposal was prepared focusing on support for small business owners and vulnerable groups who are facing great difficulties due to overlapping challenges. We will respond swiftly and actively to the crisis situations faced by our residents.”

The first supplementary budget proposal for 2023 will be reviewed and approved at the 259th Gwangjin-gu Council extraordinary session and finalized on February 17.