'Corona Sales Plunge' Department Stores and Marts Traffic Inducement Charges Reduced by 120 Billion Won

Immediate Reduction of Usage Fees for National and Express Highways
Full Waiver of Apron Fees for Aviation Ground Handling Companies

[Asia Economy Reporter Moon Jiwon] The traffic inducement charges imposed on department stores and marts will be temporarily reduced by 30%. The total reduction scale is expected to reach 120 billion KRW. Additionally, road occupancy fees and river occupancy fees will also be significantly reduced for the next three months. Private businesses are expected to reduce their burden by about 76 billion KRW through this measure.

According to the Ministry of Land, Infrastructure and Transport (MOLIT) on the 9th, the government prepared support measures for small business owners and private companies through the '14th Economic Ministers' Meeting on COVID-19 Response and the 4th Crisis Management Meeting' held on the same day.

Recently, this is aimed at alleviating the suffering of the people who are struggling due to the prolonged COVID-19 pandemic. The total reduction scale in the areas under MOLIT's jurisdiction amounts to 197.5 billion KRW.

First, MOLIT will temporarily reduce the traffic inducement charges imposed on all industries including department stores, large marts, exhibitions, transportation, culture, and tourism by 30%. The traffic inducement charge is a system that imposes an economic burden on owners of facilities that induce traffic volume to encourage traffic reduction.

MOLIT judged that it is difficult to impose the same burden as before since sales in these industries have mostly plummeted due to COVID-19. MOLIT plans to prepare 'Traffic Inducement Charge Reduction Guidelines,' notify local governments, and induce amendments to 'Charge Reduction Ordinances' by each local government.

This reduction measure is expected to generate a total benefit of 120 billion KRW. In particular, it is expected that the burden on owners of small-scale facilities under 10,000 ㎡, who account for 90% of the total traffic inducement charge subjects, will be greatly reduced.

Department Store (Photo by Asia Economy DB)

Also, MOLIT decided to reduce road occupancy fees and river occupancy fees collected from individuals or small business owners who use roads and rivers under occupancy permits for three months.

According to the Road Act and River Act, cost reductions are possible when the purpose of occupancy cannot be achieved due to special circumstances such as disasters. MOLIT interpreted that the scope of 'disaster' includes 'social disasters' such as infectious diseases and decided to reduce occupancy fees accordingly.

The reduction of road occupancy fees (general national roads and expressways) collected by the state will be implemented immediately, and the reduction of river occupancy fees will be promoted in cooperation with local governments. MOLIT expects that this reduction will result in a burden reduction effect of about 76 billion KRW.

In the aviation sector, the apron usage fees paid by ground handling companies to the airport corporation for storing work equipment will also be fully waived for three months. This is expected to reduce the burden on ground handling companies by about 1.5 billion KRW.

To support ground handling companies severely affected by COVID-19, the Seoul Regional Aviation Administration will establish a 'Ground Handling Company Support Task Force (TF).' The TF will guide government support measures and actively support by receiving difficulties and suggestions.

Oh Myung-so, MOLIT's Director General of Comprehensive Transportation Policy, emphasized, "We will continue to closely monitor the spread of COVID-19 and its impact on industries and people's livelihoods, continuously discover policy needs that urgently require assistance, and respond as quickly as possible."

This content was produced with the assistance of AI translation services.