SUWON, Jan. 29 (Korea Bizwire) – The Gyeonggi provincial government will introduce state-controlled commercial properties this year as part of efforts to tackle gentrification.
The province is trialing a policy providing 20 rent-controlled commercial spaces over 25 square meters in size between Gojan Station and Jungang Station in March, prioritizing young business owners.
Public-owned commercial properties have been part of the Moon administration’s New Deal project to tackle soaring rental prices.
The policy was first drafted by the province’s Democratic Party of Korea assembly including lawmaker Kim Yeong-hwan, who took a leading role in the development of the blueprint for the state-owned commercial property ordinance.
The move comes on the heels of growing concerns over gentrification in commercial districts across the country, as soaring rent prices and unilateral eviction notices on the part of landlords are threatening stable business operations.
Last November, the Busan Metropolitan Government announced plans to create an economic community to encourage coexistence and tackle gentrification.
The proposal for the ordinance came about last December after two years of planning, with the signatures of 48 members of the provincial assembly.
The commercial properties included in the ordinance consist of regular street-level shops, as well as public commercial spaces such as underground shopping malls.
With the ordinance enacted, buildings constructed by the Gyeonggi provincial government will allocate over 20 percent of their space to public commercial property, with discounts on rent of at least 20 percent compared to market prices.
“With the public property rent policy, which has been limited to housing, extended to commercial spaces, we hope to supply reliable commercial rental spaces to small business owners and young startup owners,” said Kim, who is a former policy advisor to the chairman of the special presidential transition committee.
More information is available on the official website of the Gyeonggi provincial government, gg.go.kr.
Ashley Song (email@example.com)