23 Municipalities and Counties in Gyeonggi Province Exempt Property Taxes of 820 Million Won for Benevolent Landlords

[Suwon Ilbo=Park No-hun Reporter] Twenty-three municipalities and counties in Gyeonggi Province have exempted a total of 820 million won in property taxes for "benevolent landlords" who reduced rental rates to support small business owners struggling due to COVID-19.

According to Gyeonggi Province on the 1st, these 23 municipalities and counties have been exempting property taxes for benevolent landlords since March through local assembly resolutions as a follow-up measure to the "Comprehensive Life Stabilization Plan to Minimize and Overcome the Fallout from COVID-19" announced by the Ministry of Strategy and Finance in February this year.

The Ministry of Strategy and Finance stated at the time that it would exempt 50% of the reduced rental amount from income tax and corporate tax for benevolent landlords who reduced rental rates for small business owners, regardless of income level or the amount of reduction. The 23 municipalities and counties are exempting property taxes based on the amount and rate of rental reductions.

Gimpo City saw the largest exemptions, exempting 325 million won in 862 cases, followed by Namyangju City with 119 million won in 758 cases, and Seongnam City with 62 million won in 422 cases.

Gyeonggi Province established an internal system to facilitate smooth property tax exemptions for benevolent landlords.

To apply for property tax exemption, tenants must prove they are small business owners. However, some difficulties were found in the exemption process, such as lack of cooperation from tenants during the issuance of small business owner certificates and lengthy procedures for submitting supporting documents.

Accordingly, the Province made recommendations to the Ministry of Interior and Safety, allowing municipalities and counties to quickly verify whether tenants are small business owners through the administrative information sharing network.

Thanks to property tax exemptions for benevolent landlords, an increasing number of landlords are reducing rental rates for small business owners, and heartwarming stories of goodwill continue to emerge.

A small business owner operating a stationery retail store in City A experienced a 70% drop in sales due to prolonged school closures in the area because of COVID-19, facing the biggest crisis in 10 years of operation. However, thanks to a considerate landlord who learned of the situation and waived three months of rent in full, the owner was able to find some relief.

A tenant operating a taekwondo academy in City B also faced closure due to declining enrollment caused by COVID-19, but the landlord reduced rent by 700,000 won each month for four months, totaling 2.8 million won, allowing the business to continue.

Kim Ki-se, Director of the Autonomous Administration Bureau of Gyeonggi Province, said, "We will continue to make every effort to ensure that both tenants and landlords can coexist through continued property tax exemptions for benevolent landlords."