Seoul Closed Stores > Opened Stores... Choi Hogwon, Yeongdeungpo District Mayor, Fully Committed to Reviving Livelihood Economy

Submission of the 1st Supplementary Budget Proposal for 2025 Worth 7.6 Billion KRW to the Council...
Special Guarantee of 26.25 Billion KRW to Support Small Merchants and SMEs Lacking Collateral

For the first time in Seoul, the number of closed stores has surpassed the number of newly opened stores, turning the feared economic downturn into a reality.

With high interest rates, high inflation, and sluggish domestic demand continuing, bankruptcies among medium-sized and small businesses are increasing, and over 200,000 self-employed individuals have closed their businesses in the past two months.

Amid this situation, Choi Ho-kwon, the mayor of Yeongdeungpo District, has taken the lead in drafting a supplementary budget to revive the local economy, ahead of the central government, Seoul City, and the 24 autonomous districts of Seoul.

Choi Ho-gwon, Yeongdeungpo District Mayor

Submission of the 1st Supplementary Budget Proposal for 2025 to the Council... Supplementary Budget of 7.6 Billion KRW

Mayor Choi Ho-kwon stated, “Our economy is currently in a prolonged recession, and the job market is shrinking, making it increasingly difficult for all generations?from youth to middle-aged and seniors?to find employment.”

He added, “The district prioritizes the safety and interests of residents and is concentrating all administrative capabilities on revitalizing the local economy and supporting livelihoods. Earlier this year, we established and are implementing a comprehensive plan for revitalizing the livelihood economy worth 26.1 billion KRW.”

To invigorate the domestic market ahead of the Lunar New Year holiday, the district issued 8 billion KRW worth of ‘Yeongdeungpo Love Gift Certificates’ early.

To provide practical support to small and medium-sized merchants, the district expanded loan support for SMEs and, in cooperation with financial institutions, is providing special credit guarantees worth 26.2 billion KRW. Additionally, the ‘Yeongdeungpo District Win-Win Market,’ which used to open only one day a month in front of the district office, has been expanded to five days a month starting this year, broadening sales channels for traditional markets and small merchants and offering more stores the opportunity to participate.

To reduce delivery app commission fees for self-employed and small merchants, the district signed a business agreement with Shinhan Bank in January this year and launched the public delivery app ‘Ttaenggyeoyo.’

The ‘Yeongdeungpo Ttaenggyeoyo Gift Certificates’ were issued in February with a scale of 50 million KRW and sold out within two hours, receiving great response. From March, the issuance scale has been doubled to 100 million KRW at the beginning of each month.

The Integrated Job Support Center, which started operations in January this year, provides individual counseling and job information to help anyone?including youth, seniors, women, and people with disabilities?find jobs easily.

Mayor Choi emphasized, “Although the central government is reviewing a special supplementary budget for livelihood stabilization and economic stimulus, discussions have been sluggish. We cannot just wait; it is time for Yeongdeungpo and local governments to take the lead in restoring livelihoods.”

Reflecting this stance, the 1st Supplementary Budget Proposal for 2025 submitted to the district council focuses on promoting urgent projects such as livelihood economy recovery, resident safety, and welfare enhancement.

The total scale of this supplementary budget is 934.8 billion KRW, including national and city funds, an increase of about 0.8% or 7.6 billion KRW from the original budget of 927.2 billion KRW.

First, 2.6 billion KRW will be allocated to support small and medium-sized merchants, traditional markets, and job creation to revitalize the livelihood economy. This includes ▲ 2 billion KRW to expand SME development fund loan support ▲ 240 million KRW for additional issuance fees of ‘Ttaenggyeoyo Gift Certificates’ ▲ 160 million KRW for market support such as modernization of traditional market facilities ▲ 140 million KRW to expand the Yeongdeungpo District Win-Win Market (formerly Eoullim Market) ▲ 87 million KRW for participation in domestic and international exhibitions and job projects.

Additionally, 3 billion KRW will be invested in policies closely related to daily life, such as creating a safe living environment and strengthening cleaning administration. This includes ▲ 1 billion KRW for expanding multi-purpose CCTV installation ▲ 610 million KRW for maintenance of aging lighting facilities and bicycle racks ▲ 390 million KRW to strengthen cleaning in Daerim-dong area ▲ 380 million KRW to create safe and clean parks ▲ 74 million KRW for creating safe return paths and installing fine dust reduction facilities.

Furthermore, 700 million KRW will be allocated to resolve resident inconveniences and strengthen communication with residents. This includes ▲ 240 million KRW for expanding publication of newsletters to enhance two-way communication ▲ 190 million KRW to support community leader activities such as communication fees and vaccination costs ▲ 49 million KRW to strengthen patrol activities by neighborhood chiefs to practice field administration in communication with residents ▲ 210 million KRW to support childcare teachers, senior centers, and youth.

Mayor Choi stated, “This supplementary budget proposal is not just a simple financial adjustment. It will provide the strength for small and medium-sized merchants to stand up again, protect residents’ daily lives more safely, and serve as a catalyst for livelihood recovery that offers practical help to our residents in difficulty.”

Yeongdeungpo District Supports Small Merchants and SMEs with 26.25 Billion KRW Special Guarantee for Those Lacking Collateral

26.25 Billion KRW Scale... Low-Interest Loans from Four Banks

Yeongdeungpo District has signed a business agreement with the Seoul Credit Guarantee Foundation and four banks to provide a special guarantee worth 26.25 billion KRW to small merchants and SMEs who have difficulty obtaining loans due to lack of collateral.

On the 20th, the district signed a ‘Special Contribution Business Agreement for Regional Economic Revitalization’ with the Seoul Credit Guarantee Foundation and Woori, Shinhan, Hana, and Kookmin Banks. The district and the four banks contributed a total of 2.1 billion KRW to the Seoul Credit Guarantee Foundation, which will provide special guarantees worth 26.25 billion KRW?12.5 times the contribution amount?to small merchants and SMEs in the region.

This support is expected to provide practical help in alleviating management difficulties by enabling small merchants and SMEs struggling due to the economic downturn to receive low-interest loans.

Small merchants and others can obtain loans from Woori, Shinhan, Hana, and Kookmin Banks using credit guarantees issued by the Seoul Credit Guarantee Foundation. The loan interest rates range from 2.74% to 2.94% (variable rates based on CD rates), and repayment options include ▲ 1-year grace period with 2, 3, or 4 years of equal installments ▲ 2-year grace period with 3 years of equal installments ▲ lump-sum repayment at 2-year maturity. However, the guarantee limit may vary depending on credit rating and sales, and detailed inquiries can be made at the Seoul Credit Guarantee Foundation Yeongdeungpo branch.

The district prioritizes regional economic revitalization and commercial district recovery and is implementing various policies such as expanding the scale of SME development fund loans, permanently opening the Win-Win Market with traditional markets and small merchants, and issuing ‘Ttaenggyeoyo’ gift certificates for the public delivery app.