Implementing Measures by Sector: Finance, Management, and Local Economic Revitalization
Dobong-gu (Mayor Oh Eon-seok) has set overcoming the crisis faced by small business owners as one of its top priorities for this year.
The district announced that it will implement detailed measures divided into three major areas?finance, management, and local economic revitalization?to support small business owners in the area who are struggling due to the economic downturn, high inflation, high interest rates, and high exchange rates.
First, the financial measures. Starting this month, the district is providing special low-interest credit guarantees for small business owners. The guarantee amount reaches 25 billion KRW, an increase of 5 billion KRW compared to the previous year. Each business can receive a guarantee of up to 200 million KRW. To reduce the interest burden on small business owners, the district will subsidize 1% interest for the first year after the loan is executed.
To this end, the district signed a "Dobong-gu Small Business Low-Interest Special Credit Guarantee Agreement" in February with Kookmin Bank, Woori Bank, Hana Bank, Shinhan Bank, and the Seoul Credit Guarantee Foundation. According to the agreement, Dobong-gu, Kookmin Bank, Woori Bank, Hana Bank, and Shinhan Bank jointly contributed 2 billion KRW to the Seoul Credit Guarantee Foundation, which will provide credit guarantees amounting to 12.5 times the contribution, totaling 25 billion KRW.
The "Yellow Umbrella Mutual Aid Subscription Support Project" also resumed this month. This project supports small enterprises and small business owners who newly subscribe to the Yellow Umbrella Mutual Aid by providing an additional monthly contribution of 10,000 KRW for up to 12 months.
The Yellow Umbrella Mutual Aid is a social public system operated by the Korea Federation of SMEs that helps small enterprises and small business owners accumulate a lump sum. By paying a fixed monthly amount to the Federation, small enterprises and small business owners can receive a refund with compound interest applied annually.
Starting in April, the district will implement the "Dobong-type Hope Incentive Support Project," which provides wage support of 500,000 KRW per month, up to 3 million KRW, to small business owners who newly hire local residents as regular employees. In May, the district will launch the "Small and Medium Enterprise Development Fund Loan Support Project," offering loans up to 1 billion KRW per business at an annual interest rate of 1.5%. The total loan fund is 3.2 billion KRW.
Next, management support. This year, the district will expand the "Small Business Manager Operation Project" to strengthen the self-sustainability of small business owners in the area. The district plans to divide the area into zones such as Ssangmun, Banghak, Changdong, and Dobong, and operate closely by region.
The project involves small business managers visiting stores to listen to on-site difficulties and provide support for solutions. When necessary, they will connect with the Smart Innovation Support Group to offer professional consultations. The Smart Innovation Support Group consists of 18 experts in various fields, including management consultants, labor attorneys, and tax accountants.
As a local economic revitalization measure, the district operates a "Local Restaurant Usage Day" every Friday. On this day, district employees use nearby local restaurants instead of the district cafeteria. With about 1,000 district office employees dining at local restaurants, assuming a meal cost of 10,000 KRW per person, it is expected that 10 million KRW will be spent at local restaurants in just one day.
In October, to celebrate the Chuseok holiday, the district will issue Dobong Love Gift Certificates worth 8.3 billion KRW. These gift certificates are a form of local currency usable within Dobong-gu and will be issued at a 5% discount. A 5% rebate event will also be held in the same month. The district expects that the combined benefits of discounted purchases and rebates will significantly stimulate local consumption.
In January, the district issued Dobong Love Gift Certificates worth 18 billion KRW for the Lunar New Year holiday.
Oh Eon-seok, Mayor of Dobong-gu, stated, "Small business owners are the foundation of the local economy. We will prioritize support for small business owners and concentrate administrative efforts on this. Through this, we aim to revitalize the local commercial district and create an environment where small business owners can continue to grow."
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