Gwangju Metropolitan City is dedicating 53.4 billion won to support small business owners who are struggling due to the ongoing economic downturn. The city has rolled out a high-intensity support initiative focusing on promoting consumption and alleviating management burdens amid high inflation and interest rates, which have exacerbated the challenges for small business owners.
According to Gwangju City, four main strategies consisting of 37 projects will be implemented this year to support small businesses. These strategies include promoting consumption and competitiveness, reducing management burdens, aiding recovery efforts, and revitalizing traditional markets.
To boost consumption, Gwangju is extending a 10% special discount on the Gwangju Love Card until February. Users of this card can enjoy discounts of 7-10% on purchases up to a monthly limit of 500,000 won, and affiliated stores with annual sales under 500 million won will receive full support for card processing fees, which range from 0.25% to 0.85%.
Efforts to enhance the competitiveness of small businesses include continuing initiatives such as digital transformation, product promotion, and fostering key commercial areas which were launched last year. Additionally, the city is increasing the special guarantee program by 20 billion won from last year to 170 billion won, offering loans up to 50 million won per company with interest support of 3-4% for one year.
A new initiative will provide support for small financial costs to small business owners with annual sales under 50 million won, covering loan interest up to 350,000 won. Support for employment and industrial accident insurance premiums (ranging from 20 to 100%) and subsidies for new recruitments (50,000 won per month for up to three months) will continue for self-employed individuals and businesses with fewer than ten employees.
The city is also offering support programs to help struggling small business owners recover by providing management consulting and encouraging enrollment in the Yellow Umbrella Mutual Aid scheme, offering a 20,000 won subsidy over twelve sessions. Additionally, interest support up to 3.5% is available for new borrowers of Bitgoeul Loan to help economically isolated individuals regain stability.
To revitalize traditional markets and commercial streets, the city plans to improve facilities and the environment, including supporting a “renaissance project” in areas like Chungjang-ro and Gwangju Songjeong Station, which emphasizes unique local characteristics. Efforts will be made to modernize aging market facilities, provide fire insurance subsidies, and offer managerial salary support to enhance the self-sufficiency of merchant associations.
A new “Traditional Market Specialization Project” is also being launched to develop a market activation model that combines local resources with entertainment and attractions.
Joo Jae-hee, Director of Gwangju City’s Economic Startup Bureau, emphasized that Gwangju City is committed to being a strong supporter for small business owners during challenging times, aiming to breathe life into local economies and help small business owners thrive through tailored support programs.