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Busan Metropolitan City to Implement 50% Rent Reduction on Public Properties for Small Business Owners

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it will reduce rent for tenants of city-owned public properties by 50% to alleviate the financial burden on small business owners caused by the prolonged economic downturn.

This measure is based on the revised Enforcement Decree of the Public Property and Goods Management Act and the related notice from the Ministry of the Interior and Safety, both enacted on September 2. The decision was finalized following deliberation by the City’s Public Property Review Committee. In addition to rent reduction, the City will also implement a one-year deferral of rent payments and a 50% reduction in late payment fees.

The support targets small and medium-sized enterprises (SMEs) and small business owners as defined under the Framework Act on Small and Medium Enterprises and the Framework Act on Small Enterprises and Small Business Owners. A total of 2,277 leases on city-owned public properties are expected to benefit, amounting to an estimated 11.7 billion KRW in relief.

The rent reduction will apply to payments due between January and December 2025. For rents already paid, the reduced amount will be refunded, and for new contracts, the reduced rate will be applied. The program includes:
▲ a 50% rent reduction based on the existing rate, ▲ a one-year extension of the payment deadline, and ▲ a 50% reduction in late payment fees.

Under the 50% reduction measure, small business owners and SMEs leasing city-owned public properties will receive a rent discount equal to half the standard rate.
Additionally, the City will allow rent payment deadlines to be extended by up to one year and reduce late payment fees by 50%, thereby providing extra financial relief.

Applications will be accepted through each managing department until November 30, following official notification. Applicants must submit the required application form along with either a Certificate of Small Business Status or a Certificate of SME Status, and refunds or rent reductions will be processed by December.

Applicants can obtain the required Certificate of Small Business Status or SME Status through the SME Information System (sminfo.mss.go.kr).

However, to qualify, the applicant must directly use the leased public property for their business operations. The following cases are excluded:
▲ businesses engaged in entertainment or nightlife industries restricted under Article 5(1) of the Support for Small and Medium Enterprise Establishment Act; and ▲ tenants subject to the minimum rent rate (1%) specified in Article 19(6) of the Busan Metropolitan City Ordinance on the Management of Public Property and Goods.

In addition, unauthorized occupants who are paying compensation fees are excluded. However, if such occupants sign a lease contract within this year after settling their compensation payments, they will be eligible for the benefits for the duration of the new lease period.

Mayor Park Heong-joon stated, “I hope this rent reduction measure will help small business owners and SMEs who are struggling with declining sales and increased closures amid the prolonged economic slump,” adding, “Busan Metropolitan City will continue to make every effort to support the recovery of the local economy and the livelihood of its citizens.”