Gwangju City to Inject 53.4 Billion Won to Support Small Business Vitality

Implementing 37 Projects Under Four Key Strategies, Including Stimulating Consumption
Expanding Sangsaeng Card Discounts and Special Guarantee Programs for Small Business Owners

Gwangju Mayor Kang Gijeong visited Songjeong Daily Market in Gwangsan District on the 21st of last month ahead of the Lunar New Year holiday to encourage merchants and conduct a campaign for subscribing to the traditional market fire mutual aid. Provided by Gwangju City

Gwangju City is making a full-scale effort to revive the local economy by allocating 53.4 billion KRW this year to support small business owners struggling amid the ongoing economic downturn.

With high inflation, high interest rates, and a stagnant domestic market worsening the business environment for small business owners, and with consumer spending further shrinking under emergency economic conditions, the city has decided to focus its support projects this year on stimulating consumption and alleviating management burdens.

According to the city on the 24th, small business owners will be supported through 37 projects under four main strategies: ▲stimulating consumption and strengthening competitiveness ▲alleviating management burdens ▲supporting business recovery ▲revitalizing traditional markets.

To boost consumption, the special 10% discount on the Gwangju Sangsaeng Card will be extended through February. Card users can receive discounts (7-10%) on purchases up to 500,000 KRW per month, and merchants with annual sales of less than 500 million KRW will have their card transaction fees fully covered (0.25-0.85%). The city will also continue operating the public delivery app and promote consumption through discount promotions and support for consumer delivery fees.

To strengthen the competitiveness of small businesses, the city will continue last year's projects for digital transformation, product commercialization support, and nurturing promising commercial districts (three locations). Projects to alleviate the management burden on small business owners will also be implemented. The special guarantee program for small businesses will be expanded by 20 billion KRW from last year to a total of 170 billion KRW. Through this guarantee, each business can receive loans of up to 50 million KRW, with 3-4% interest subsidized for one year.

In particular, the city will newly launch the "Financial Cost Support Project for Micro Business Owners in Secondary Financial Institutions," providing support for financial costs (up to 350,000 KRW in loan interest) to small business owners with annual sales under 50 million KRW. The city will also continue supporting employment and industrial accident insurance premiums (20-100%) for sole proprietors and businesses with fewer than 10 employees, as well as wage subsidies for new hires (500,000 KRW per month, up to three months).

Support projects will also be implemented to help small business owners in crisis achieve stable business recovery. The Primary Care Center will provide consulting to strengthen management capabilities and support recovery in response to changing environments. The city will provide incentives (20,000 KRW, 12 times) for joining the Yellow Umbrella Mutual Aid Fund, a representative mutual aid program for small business owners, and subsidize loan interest (up to 3.5%) for new applicants of the Bitgoeul Loan program, which is operated to help the financially excluded achieve economic recovery and stability.

To revitalize traditional markets and shopping districts, the city will improve facilities and environments and implement projects to strengthen merchants' capabilities. The Renaissance Project will be carried out to enhance and revitalize the commercial environments of two districts, Chungjang-ro and Gwangju Songjeong Station, reflecting their unique characteristics. Facility modernization projects, such as renovating aging traditional markets and repairing arcades for customer convenience, will also be implemented. Fire insurance support (60% of the premium, up to 120,000 KRW) will be provided for traditional markets vulnerable to fire, enabling swift recovery and stability. Additionally, the city will strengthen the self-sufficiency of merchant organizations by subsidizing manager salaries for merchant associations in traditional markets and shopping districts.

This year, the city will also newly launch the "Traditional Market Specialization Project." This initiative aims to develop a model for revitalizing traditional markets by connecting local resources and creating fun and engaging experiences, turning them into regional attractions.

Ju Jaehee, Director of the Economic and Startup Bureau, stated, "Although these are difficult times, Gwangju City will be a strong pillar so that the hard work of small business owners does not go in vain. Through tailored support, we will revitalize local commercial districts and traditional markets, and do our utmost to help small business owners make a fresh leap forward. We also hope that citizens will actively participate by using the Gwangju Sangsaeng Card and the public delivery app to help warm up the local economy."