'Nice landlord' campaign slashing rent for struggling businesses amid COVID-19
Arirang News
2020-12-21
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자발적 임대료 인하로 코로나 어려움 이겨내는 지역 상권…"고마워요, 착한 임대인"
Many around the world have been facing eviction or struggling to pay rent in the wake of the Covid-19 pandemic.
The story hasn't been much different here in South Korea, but there is a growing movement among landlords - to provide rent relief to their tenants.
Kim Jae-hee has this story.
The COVID-19 outbreak is crippling small businesses across the country.
"This street in Gangnam, which is usually packed with customers visiting pubs, restaurants and cafes,... has been nearly empty since the start of the third wave of the pandemic."
"We have no sales, but still have to pay rent and electricity bills."
According to the Korea Federation of Micro Enterprise, almost 70 percent of business owners said rent was their biggest cost burden.
To help those struggling to pay rent, some landlords have come together and agreed to lower rents for small business owners.
This so-called the 'nice landlord' movement,... which started in Jeonju Hanok Village in February, has gained traction around the country... and has even spread to Gangnam-gu and Seocho-gu districts in Seoul, where rent and property prices are particularly high.
"We voluntarily cut rent for the restaurant in our building by 30 percent for 3 months. We also put up placards to encourage other building owners to follow suit,... under the belief that even a little support from landlords could be a big help to restaurant owners."
To encourage the movement, the South Korean government has been offering tax deductions to landlords who give rent discounts.
Those landlords are eligible for a deduction on their income or corporation tax worth 50 percent of whatever rent deductions they give their tenants. The scheme runs until next June.
Business owners say the government, landlords, and businesses should work together.
"The rent discount I've received for 3 months was a great help. But as the landlords can't afford to give rent cuts forever, I hope we can all overcome this crisis by working together, with government's support for small businesses and landlords that offer rent cuts."
As of the end of October, more than 40-thousand businesses have seen lower rents as part of the 'nice landlord' campaign.
Kim Jae-hee, Arirang News.
Many around the world have been facing eviction or struggling to pay rent in the wake of the Covid-19 pandemic.
The story hasn't been much different here in South Korea, but there is a growing movement among landlords - to provide rent relief to their tenants.
Kim Jae-hee has this story.
The COVID-19 outbreak is crippling small businesses across the country.
"This street in Gangnam, which is usually packed with customers visiting pubs, restaurants and cafes,... has been nearly empty since the start of the third wave of the pandemic."
"We have no sales, but still have to pay rent and electricity bills."
According to the Korea Federation of Micro Enterprise, almost 70 percent of business owners said rent was their biggest cost burden.
To help those struggling to pay rent, some landlords have come together and agreed to lower rents for small business owners.
This so-called the 'nice landlord' movement,... which started in Jeonju Hanok Village in February, has gained traction around the country... and has even spread to Gangnam-gu and Seocho-gu districts in Seoul, where rent and property prices are particularly high.
"We voluntarily cut rent for the restaurant in our building by 30 percent for 3 months. We also put up placards to encourage other building owners to follow suit,... under the belief that even a little support from landlords could be a big help to restaurant owners."
To encourage the movement, the South Korean government has been offering tax deductions to landlords who give rent discounts.
Those landlords are eligible for a deduction on their income or corporation tax worth 50 percent of whatever rent deductions they give their tenants. The scheme runs until next June.
Business owners say the government, landlords, and businesses should work together.
"The rent discount I've received for 3 months was a great help. But as the landlords can't afford to give rent cuts forever, I hope we can all overcome this crisis by working together, with government's support for small businesses and landlords that offer rent cuts."
As of the end of October, more than 40-thousand businesses have seen lower rents as part of the 'nice landlord' campaign.
Kim Jae-hee, Arirang News.
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