Mayor Lee Jangwoo of Daejeon: "60% Reduction in Public Property Rent for Small Businesses and SMEs"

A Total of 1,150 Cases and 4.9 Billion KRW in Relief
Largest Reduction Rate Among Metropolitan Cities, Except for Ulsan

Lee Jangwoo, Mayor of Daejeon (Photo by Mo Seokbong)

Lee Jangwoo, Mayor of Daejeon, announced, "Daejeon City will reduce the rental fees for public properties by 60% for small business owners and small and medium-sized enterprises (SMEs) to support those struggling with declining sales due to the recent contraction in consumer spending and economic downturn."

Mayor Lee stated, "This decision represents the largest reduction rate among metropolitan and special cities, except for Ulsan, which offers an 80% reduction."

This reduction measure will apply to a total of 1,150 cases, amounting to approximately 4.9 billion KRW in total relief.

Currently, 1,150 businesses or individuals are leasing and using Daejeon City's public properties. They pay about 10.5 billion KRW in annual rent, with small business owners and other micro-enterprises accounting for 97.7% of the tenants and 87.4% of the total rent paid.

The reduction in public property rental fees follows the amendment of the Enforcement Decree of the Public Property Act on September 2, 2025, which now allows local governments to grant rent reductions during economic downturns. This relief will be available to small business owners and SMEs from January 1 to December 31, 2025 (for one year), and retroactive application is possible for rent already paid.

Under this measure, small business owners and SMEs who directly use public properties will receive up to a 60% reduction in rent, capped at 20 million KRW. The estimated total relief is about 4.9 billion KRW. However, any amount already supported through the "2025 Rent Support Program for Micro-Enterprises" will be excluded.

Despite Daejeon City’s challenging fiscal conditions due to the implementation of various projects such as the construction of Tram Line 2, the city decided on a 60% reduction rate to provide comprehensive and equitable support. This rate is higher than the average of 20-50% among metropolitan and special cities, but lower than Ulsan’s 80% rate.

Prior to deciding on the 60% reduction rate, the city held a "Public Property Rent Reduction Meeting for Small Business Owners" on December 1 (at the City Hall main conference room, with about 50 participants from various sectors, including representatives from underground shopping malls, two wholesale markets, and SMEs). During the meeting, the city explained the purpose of the support measures, the timing of refunds, and the reduction rate, before finalizing the rate.

After completing administrative procedures such as the Public Property Review Committee, the city will send notifications to eligible recipients and provide detailed instructions on the application process and required documents. Eligible recipients will submit an application form and supporting documents, after which the city will review the submissions and implement the rent reduction.

Mayor Lee Jangwoo said, "I hope this measure will help alleviate the management burden faced by small business owners and SMEs during the economic downturn," adding, "We will continue to implement various support policies to stabilize livelihoods."

This content was produced with the assistance of AI translation services.