2024 Provincial Settlement Gyeonggi Province's Livelihood Recovery Projects Focused on Resident Satisfaction

(2) Opportunities – Gyeonggi Province's Major Small Business Owner Policies

[Suwon Ilbo=Reporter Kim Gap-dong] Under the basic direction that livelihood stabilization is the highest goal and core value of provincial administration, the Gyeonggi Provincial Government has pursued livelihood recovery projects with high resident satisfaction this year. We examined various support policies implemented by Gyeonggi Province this year to ease household shopping burdens and encourage increased sales for small business owners.

■ Revitalizing Gyeonggi and Small Business Owners through 'Livelihood Recovery Let's Go!' Project

The province implemented the 'Livelihood Recovery Let's Go!' project this year to support small business owners and ordinary citizens struggling with high interest rates and high prices. This project was divided into 'Revitalize Gyeonggi' and 'Small Business Owners Fighting'.

The 'Livelihood Recovery Let's Go! Revitalize Gyeonggi!' project, conducted in May and June, worked with the Gyeonggi Market and Commercial District Promotion Center to provide diverse attractions and entertainment through 'grand-scale sales' at 154 local commercial areas including traditional markets such as Pyeongtaek Tongbok Market and Osan Five-Color Market, and alleyway commercial districts, while conducting sales promotion events including payback and prize giveaways. As the year-end season approaches, from November to December, the province is supporting various consumption-promoting events including cultural performances, discounts, and delivery fee subsidies for 194 locations including traditional markets, alleyway commercial communities, and small business owner associations.

Additionally, through 'expanded regional currency' programs, the province promoted consumption in alleyway commercial districts by increasing the regional currency recharge limit from 1 million won to 2 million won, and raising the holding limit (1.5 million → 3 million won) and discount rate (6% → 7%).

The 'Livelihood Recovery Let's Go! Small Business Owners Fighting! Project' focuses on issuing the nation's first small business owner exclusive purchase card, extending the principal repayment period for funds borrowed during COVID-19, and providing marketing support through major e-commerce platforms.

Since September 30, the province has implemented 'special guarantee exceptions for extended debt repayment for mid- to low-credit small business owners'. This policy extends the principal repayment period for small business owners that came due after the special COVID-19 support and reduces financial burdens through secondary interest rate subsidies.

Mid- to low-credit small business owners can receive loan repayment extension benefits of up to 100 million won per business, and can achieve annual financial cost savings of 3% through secondary interest subsidies of 2% and guarantee fee waivers of 1% over six years (3-year grace period, 3-year principal installment repayment). With plans to support a total scale of 300 billion won, the program has received strong response from small business owners, with 11,438 cases and 177.452 billion won in guarantees executed as of November 22.

The province also supported sales channels and brand promotion for 129 small business owners and small- to medium-sized enterprises within the province through the 'large e-commerce platform linkage sales channel support project' in cooperation with G-Market, providing banner advertisements and promotion coupons.

The 'Gyeonggi Small Business Owner Fighting Card,' introduced nationally for the first time, was launched on November 6 through IBK Corporate Bank and is currently in pilot operation. As a card to support operational fund-dedicated financing for small business owners, it can be used up to a limit of 5 million won per business, offering six months of interest-free benefits, tax deductions with no annual fees or guarantee fees, and cashback of up to 500,000 won. The province has submitted a budget proposal to the Gyeonggi Provincial Assembly for deliberation to supply approximately 20,000 small business owners in the province with a total scale of 100 billion won beginning in earnest next year.

■ From Raising Regional Currency Discount Rates to Improving Small Business Operating Environment

Gyeonggi Province temporarily raised the discount rate for Gyeonggi regional currency by city and county from 7% to 10% before Chuseok, and the Gyeonggi Market and Commercial District Promotion Center also conducted payback promotions that returned 10% in Onmuri gift certificates and regional currency to customers making purchases of 50,000 won or more at traditional markets and alleyway commercial districts.

Additionally, as of November 15, the province supported small business owner support funds for 11,289 businesses with 372.2 billion won during the year, providing financing for store lease funds and startup funds. Small business owner debt consolidation funds (converting existing high-interest loans to lower-interest loans) were provided to 2,338 businesses with 53.5 billion won. The province also supported traditional market vitalization in commercial areas, including 4 sites for traditional market innovation model establishment projects, 2 Gyeonggi-style commercial district promotion zones, and modernization of 11 traditional markets, and pursued small business owner competitiveness enhancement projects including business environment improvement support for 3,432 companies and specialized consulting provision for 1,273 defunct small business owners.

Huh Seung-beom, Director of the Economic Division, stated, "We have implemented various support measures this year for small business owners and self-employed individuals struggling with high interest rates and high prices," and added, "Next year, we will concentrate all efforts on livelihood economic recovery, including activating regional currency and promoting the small business owner exclusive card."