The Kyunghyang Shinmun is implementing a rent reduction policy for stores occupying its buildings during the corona19 pandemic.
According to the Kyunghyang Shinmun’s Management Support Bureau, the Kyunghyang Shinmun offers a 40% reduction in rent for self-employed and small business tenants who operate in four buildings owned by the company.
Kyunghyang Shinmun owns four buildings, including the main building of Kyunghyang Shinmunsa in Jeongdong-gil, Jung-gu, Seoul, an annex where the franchise rice cakes and metals unions reside, Kyunghyang Art Hill, and Sinmunro Building, which houses Gangnam-myeonok. In addition, 16 out of 35 leased rentals were reduced for self-employed persons and small business owners who operate restaurants, cafes, and gyms.
The manager of the Kyunghyang Shinmun’s Management Support Bureau said, “We reduced 20% of the existing rent for four months from March to June last year, when the Corona 19 crisis became serious. The government provided a tax deduction for half the rent reduction and reduced rent for small business owners that much. “At the end of the year, the crisis rather prolonged and tenants complained of pain. “We are implementing 40% reduction for 3 months from last month to next month.”
The total amount of reduction is known to be around 200 million won. Afterwards, whether or not the rent is reduced and the amount will be determined after review.
The Kyunghyang Shinmun’s management support bureau announced the decision to cut the rent and said, “Compared to other countries, there are more self-employed and small business owners in Korea, especially in the corona 19 phase, where all subjects are connected. It was judged that it was necessary to share the pain and coexist rather than the logic of capitalism.”
While the media highlights the damage suffered by tenants in the corona 19 phase every day, it is pointed out that media companies that make rental profits should also cut or stop renting tenants who were directly hit by the pandemic and government business restrictions. “It will be difficult for both the tenant and the lessor, but the tenant in particular was struck by a direct hit and was driven to existence or not. It is a time when it is necessary to have an attitude of shared growth and pain sharing to overcome Corona 19. In addition, media companies need to actively take the lead in reducing rent as they are required to have stronger social responsibilities than private companies.
Park Ji-ho, secretary general of the Merchant’s Meeting (Mam Sang-mo), who wants to do business in a comfortable way, said, “As the press reports the direction for the Korean society to go forward, as a building owner, we must take an example of the difficulties that society faces.” Currently, there are many methods such as the fee store policy (about 15% of the amount of sales minus VAT is set as rent) that large companies are implementing.”
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