Gyeonggi Education Office to Lower Shared Property Rental Rates to 1-3%

The Gyeonggi Provincial Office of Education will lower the rental rates for shared assets to between 1% and 3% to support local small business owners and small and medium-sized enterprises (SMEs) in the province.

On November 7, the office announced that it has decided to reduce the rental rates to 1% and 3%, respectively, for small business owners and SMEs currently using or leasing shared property owned by schools and educational institutions within its jurisdiction, in order to ease their rent burden.

This move follows the amendment of the Enforcement Decree of the Public Property and Commodity Management Act in September, which now allows support for small business owners and SMEs during economic downturns. Previously, rent reductions were only possible after review by the Shared Property Deliberation Committee in cases of disaster damage.

Gyeonggi Provincial Office of Education Southern Office

Accordingly, the office will provide the following support to tenants of shared property this year: a reduction in the rental (lease) rate for shared property, a payment deferral of up to six months, and a 50% reduction in late fees during the applicable period.

In particular, by lowering the shared property rental (lease) rate from the previous level of 5% to 1%, tenants are expected to see their rent burden reduced by up to 80%.

An official from the office stated, "With these measures, we expect that local small business owners operating by leasing educational property within the jurisdiction will be able to overcome declines in sales and the risk of closure, and receive substantial relief in rent costs."

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