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Busan Metropolitan City Extends 50% Rent Reduction for Public Property Leased by Small Businesses and SMEs

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Busan Metropolitan City, led by Mayor Chun Jae-soo, announced that it will extend a measure reducing rent on city-owned public property by up to KRW 20 million, within 50% of the existing rental rate, to ease the rental burden on small businesses and SMEs struggling amid the prolonged economic downturn.

The measure follows an amendment by the Ministry of the Interior and Safety to the Public Notice on the Period of Application of Measures to Ease the Burden of Using Public Property for Small Businesses and Others. The Public Property Deliberation Committee approved the extension of the rent reduction through the end of 2026.

Eligible recipients are small and medium-sized enterprises and small businesses as defined under the Framework Act on Small and Medium Enterprises and the Framework Act on Small Business Owners. Approximately 2,800 leases of city-owned public property are expected to qualify, generating an estimated support effect of up to KRW 7 billion.

However, the public property must be used directly for the eligible business activity. Businesses falling under the proviso to Article 5, Paragraph 1 of the Support for Small and Medium Enterprise Establishment Act, including general entertainment bars, and lessees already subject to the minimum rental rate of 1% under Article 19, Paragraph 6 of the Busan Metropolitan City Ordinance on the Management of Public Property and Goods are excluded.

Unauthorized occupants who pay indemnity charges are also excluded. However, those who pay the indemnity charges and enter into a lease agreement within 2026 may receive the benefit for the duration of the agreement.

The measure applies to rent payable in 2026 and eligible 2025 rent for which no application was submitted. For rent already paid, the reduced amount will be refunded. New leases will be billed at the reduced amount.

50% Reduction from the Existing Rental Rate, Capped at KRW 20 Million

Small businesses and SMEs leasing city-owned public property will receive a reduction of up to KRW 20 million, within 50% of the existing rental rate.

Payment Deadline Extended by Up to One Year and Late Fees Reduced by 50%

The payment deadline for rent on city-owned property may also be extended by up to one year, while late fees will be reduced by 50%. This is expected to provide additional support by substantially easing the burden of late-payment charges.

Applications will be accepted by the city departments responsible for each lease through November 30 following notification to eligible tenants. Applicants must submit an application form together with a Small Business Confirmation Certificate or SME Confirmation Certificate. Refunds and rent adjustments will be completed by December.

Eligible applicants may apply for and obtain a Small Business Confirmation Certificate or SME Confirmation Certificate through the SME Status Information System at https://sminfo.mss.go.kr.

Mayor Chun Jae-soo said, “I hope this rent reduction will help small businesses and SMEs that are facing declining sales, increasing business closures, and other difficulties caused by the prolonged economic downturn.” He added, “We will continue our efforts to support the recovery of the local economy and improve people’s livelihoods.”