The Korea Local Administration Review

As the damage caused by COVID-19 spreads, local governments are preparing various support policies for local small business owners who are experiencing financial difficulty. The factors affecting the closure of small businesses in each district of Seoul from Q1 2020 to Q3 2021 were identified by using big data from the Seoul commercial district analysis, and conclusions and policy implications were drawn on Seoul’s support plans for small businesses in the future. As a result of analyzing using a hierarchical linear model(HLM) and machine learning analysis method, it showed that the survival period (survival rate) of small businesses, disaster subsidy provided during the Covid-19 period, business period, and the number of working population were factors that lowered the closure rate of small businesses. Furthermore, it showed that high rental prices increased the closure rates of small business owners. Therefore, in the future of disaster situations, payment of disaster subsidies to household members, rental support for small business owners, and revitalization of local commercial areas can be policy alternatives to lower the possibility of small business closures.