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  • Seoul Takes Actions to Revive Hotels in Crisis

  • Economy & Investment News SMG 2248

    As the COVID-19 pandemic is prolonged, the tourism industry at large has been struck by great economic damage and hotels are increasingly suffering. Support for the hotel industry is essential for preparation of the revival of the tourism and MICE industry after the COVID-19 pandemic. Thus, the Seoul Metropolitan Government (SMG) and the Seoul Tourism Organization (STO) have decided to assist hotels in Seoul through the “Seoul Hotel Business Crisis Coping Project,” following the support for the travel and MICE industries.

    The SMG will invest a total of KRW 2 billion to support 400 Seoul-based hotels, each with up to KRW 5 million. Eligible applicants are hotels currently in operation in Seoul, and the application period is from Wed, May 27 to Fri, Jun. 12.

    New ways to distribute the business expenses will be introduced as well. After 400 hotels are finally selected and announced on Fri, Jun. 19, they can receive the fund either in advance through a certificate of guarantee insurance registration or in arrears after showing proof of business expenses.

    As this support is distributed to cover business expenses, not as a form of emergency disaster relief funds, to facilitate the recovery of the industry after COVID-19, it is not permitted to be spent for payroll, facility expenses or leases.

    For more information, visit the websites of STO (http://www.sto.or.kr) and the Korea Hotel Association (www.hotelskorea.or.kr). Applications are available online on the special page of the STO website.

    Additionally, the SMG closed the first round of recruitment for the “Seoul MICE Industry Crisis Coping Project” to support the MICE industry suffering harsh financial difficulties due to COVID-19 and began its preliminary business expense support. The SMG and the STO relaxed the application criteria, such as MICE project records and business history, and begin the second round of recruitment.

    The application will be received until 6 PM on Thu, Jun. 4, and the results of the final selection will be announced on Fri, Jun. 12. Same as the first round of recruitment, the application is available on the special page on the STO website (http://www.sto.or.kr).