The Ministry of the Interior and Safety announced that on July 7 (Monday), they will propose a revision to the “Management of Public Property and Goods Act” to alleviate the business burden on small businesses and SMEs in response to emergency economic situations like economic downturns.
Under the current system, rent reduction for public property is only possible in cases of disaster damage. However, the amendment expands the scope of reduction to include economic crisis situations such as economic downturns. Accordingly, local government heads can temporarily implement rent reduction measures during economic crises.
During an economic crisis, the support is limited to small businesses and SMEs as defined by the “Small Business Basic Act” and the “Small and Medium Business Start-up Support Act.” When the Minister of the Interior and Safety announces the period of economic downturn, each municipality can autonomously decide on the reduction rate, target, and scope through the public property review committee. The reduction period may also be applied retroactively.
Additionally, measures include extending the rent payment period within a one-year limit or reducing the late fee by 50%.
If the revision is implemented, it is expected to help small businesses and SMEs operating cafes, restaurants, convenience stores, etc., lighten their burden and contribute to the recovery of the local economy.
The amendment can be checked in the official gazette and the National Participation Legislation Center, and opinions can be submitted via mail, fax, or online during the legislative notice period.
Kim Min-jae, Vice Minister of the Interior and Safety, stated, “Effective system operation is necessary to ensure the survival of small businesses and the maintenance of employment,” adding, “We will continuously supplement the system by reflecting the voices of the field.”
