Seoul City Councilor Jeong Ji-gwon Urges Measures to Provide 'Traffic Inducement Charge Reduction Benefits' for Small Business Owners and Self-Employed

Seoul City to Amend Ordinance to Reduce 'Traffic Inducement Charges' for Large Facilities Related to COVID-19... Calls for Measures to Ensure Economic Burden Relief for Lessors from Large Facility Owners Eligible for Traffic Inducement Charge Reduction

Assemblyman Jeong Ji-gwon

[Asia Economy Reporter Jongil Park] Seoul Metropolitan Council member Jeong Ji-gwon (Democratic Party, Seongdong 2) urged on the 8th, during the standing meeting of the Seoul Metropolitan Council Transportation Committee held amid the recess of the 296th extraordinary session, that measures be devised to alleviate the economic burden of not only large facility owners but also small business owners and self-employed tenants regarding the partial amendment ordinance on the reduction of the Seoul Metropolitan Transportation Inducement Charge proposed by the Mayor of Seoul.

Recently, due to the expansion of untact (non-face-to-face) economic activities triggered by the COVID-19 pandemic, there has been a growing discrepancy between the scale of the transportation inducement charge imposed on large facilities causing traffic congestion and the actual degree of traffic inducement. Central government ministries (Ministry of Economy and Finance, Ministry of Land, Infrastructure and Transport) have requested metropolitan local governments to temporarily reduce the transportation inducement charge reflecting this situation, highlighting the necessity of such reductions.

Accordingly, Seoul submitted a partial amendment ordinance on the reduction of the Seoul Metropolitan Transportation Inducement Charge, allowing for a reduction of up to 30% of the charge when a serious-level crisis alert for disasters is issued.

Council member Jeong Ji-gwon agreed with the intent to reduce the charge on transportation inducement facilities to alleviate the economic burden of small business owners, self-employed persons, and building owners who are suffering from decreased visitors and plummeting sales due to COVID-19. However, he raised concerns that since the actual subjects of the transportation inducement charge are large building owners, the benefits of the charge reduction would be fully enjoyed by the building owners, and small business owners and self-employed persons would not receive any benefits.

He also urged, “Seoul must prepare measures to ensure that when deciding the period and facilities eligible for reduction under this ordinance amendment, the benefits are guaranteed to reach small business owners and self-employed persons residing in the respective buildings.”

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