Mitigating COVID-19 Economic Impact... Yongsan-gu Reduces Traffic Inducement Charges by 15%

Traffic Inducement Charges Reduced by 15% Across the Board; Bills and Notices Sent... Payment Due This Month... Late Fees Apply

[Asia Economy Reporter Jongil Park] Yongsan-gu (District Mayor Seong Jang-hyun) has reduced the 2020 Traffic Inducement Charge by 15% to alleviate the economic impact caused by the novel coronavirus infection (COVID-19).

The reduction applies to 1,370 cases, amounting to 760 million KRW.

The Traffic Inducement Charge is a fee imposed on facilities that cause traffic congestion. It is levied on those owning at least 160㎡ of a facility with a total floor area of 1,000㎡ or more. The amount is calculated by multiplying the total floor area by the unit charge and the traffic inducement coefficient. The collected funds are used for urban traffic maintenance.

The district imposes the Traffic Inducement Charge once a year under the Urban Traffic Maintenance Promotion Act, and the current charging period is from August 2019 to July 2020. Late payments incur additional fees.

Recently, the district sent payment notices and information letters to facility owners (managers) to inform them of the reduction.

The payment period is from the 16th to the 31st of this month. Payments can be made through the Seoul City Internet Tax Payment System. It is also possible to pay at commercial banks and via the Internet Giro website.

A district official stated, “To ease the burden on self-employed individuals, small business owners, and companies struggling due to COVID-19, we have reduced this year’s Traffic Inducement Charge by 15%. The reduction applies uniformly to all facility owners within the district who pay the charge, without any separate application process.”

Those who did not use their facilities for more than 30 days during the payment period but did not report non-use can receive additional reductions. They must report to the district office within 10 days from the date they receive the notice.

In principle, the facility owner is responsible for the Traffic Inducement Charge. However, since tenants sometimes pay it under special agreements, the district expects this measure to also benefit self-employed individuals facing financial difficulties.

Previously, the district also reduced (refunded) the 2020 regular road occupancy fees by 25%, amounting to 670 million KRW.

Additionally, the district plans to lead economic recovery by employing all possible measures, including ▲emergency management stabilization funds for small business owners ▲loan interest rate reductions for small, youth enterprises, and small business owners ▲operation of a customized bidding information system ▲priority purchase of small business products ▲issuance of Yongsan Love Gift Certificates ▲support for businesses visited by COVID-19 confirmed cases.

Seong Jang-hyun, Mayor of Yongsan-gu, said, “We hope the reduction of the Traffic Inducement Charge will provide even a small help to residents and merchants,” and added, “We will continue to seek ways to reduce the economic burden on our citizens.”

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