NATIONWIDE RENT REDUCTION MOVEMENT

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An increasing number of building owners are either lowering or waiving rent for businesses affected by COVID-19. The government has decided to give traction to the "nice landlord" movement by subsidizing such kindhearted property owners. Now the government will subsidize half of the reduced rent and public agencies will also take part in the rent reduction movement.

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​​Some building owners are lowering rent for businesses hit hard by the COVID-19 epidemic. They made the decision voluntarily.

[Soundbite] JEON YEONG-BEOM(CHAIR, NAMDAEMUN MARKET MERCHANTS ASSOCIATION) : "If the government announced a tax benefit plan, hundreds of other landlords will cooperate and participate."

So the government decided to lend a helping hand. It will subsidize half of the reduced rent. If a landlord lowers monthly rent from one million won to 500,000 won, half of the 500,000 reduction will be exempted from tax. This plan will be enforced until the end of June. But legal revision is needed. So the government has put forth measures that can be implemented immediately. If more than 20% of the stores in a market receives rent reduction benefit, fire safety facilities for the entire market will be upgraded. Rent for the merchants inside government buildings will be lowered by two-thirds. Public agencies will also take part in this movement.

[Soundbite] HONG NAM-KI(DEPUTY PRIME MINISTER) : "All 103 public agencies that lease facilities, such as KORAIL, LH Corporation, Incheon International Airport Corporation, will take part in the rent reduction movement."

Rent will be reduced as much as 35% for some 8,000 businesses. The total discounted amount is expected to be around 30 billion won. The government even announced additional support plans for small business owners today.