The rental burden of small business owners operating cafes, restaurants, and convenience stores by borrowing local government property, such as subway underground shopping malls, is expected to be alleviated even in the 'economic recession' situation. Previously, relief measures were only possible during disaster damages, but now support has been extended to situations of economic crisis, including economic recession.
The Ministry of the Interior and Safety announced on the 26th that a revision proposal for the 'Implementation Ordinance of the Local Government Property and Goods Management Act', which centers on this content, was approved at the Cabinet meeting on the 26th.
Local governments specify that the rate for using local government property and rental is to be set at no less than 5% of the property value. However, in the case of disaster damage due to natural disasters, the rate may be lowered to a minimum of 1% through the local government property review council.
The Ministry of the Interior and Safety amended the regulations to support small business owners and small and medium-sized enterprises suffering from consumption contraction and economic recession, making this possible even in the 'economic recession' situation. The application period for the relief is from January 1, 2025, to December 31, 2025, and retroactive application is possible.
A representative from the Ministry of the Interior and Safety noted, "With this revision of the implementation ordinance, the rental burden of small business owners and small and medium-sized enterprises renting local government property is expected to be alleviated by up to about 80%."