SME Ombudsman to Overhaul 400 Local Water and Sewerage Regulations at Once

Significant Reduction in Initial Investment and Fixed Expenses Expected for SMEs and Small Business Owners

The Small and Medium Business Ombudsman has decided to conduct a comprehensive review of local regulations related to water supply and sewerage ordinances across all local governments nationwide and improve a total of 400 local regulations in bulk. With this measure, areas such as warehouses and parking lots that do not use water will be excluded from the calculation of water supply infrastructure charges, and unreasonable standards for water usage and sewage discharge will be revised, thereby improving the business environment for small and medium-sized enterprises.

Choi Seungjae, the Small and Medium Business Ombudsman, made this announcement during a briefing on the 11th. Since 2021, the Ombudsman has been working to improve local regulations that directly affect small businesses and self-employed individuals, focusing on practical issues in the field. This time, the focus was on reducing the cost burden related to water supply and sewerage for small and medium-sized enterprises.

Choi Seungjae, Small and Medium Business Ombudsman, is giving a briefing on "Small and Medium Business Ombudsman, Comprehensive Improvement of Local Regulations on Water Supply and Sewage" at 10:30 a.m. on the 11th at the Government Seoul Office Annex. Small and Medium Business Ombudsman

The Ombudsman, in cooperation with local governments, reviewed 1,614 ordinances from 160 local governments regarding water supply and sewerage, including criteria for imposing infrastructure charges, calculation and reduction of usage fees, objection procedures, and payment methods. Out of these, 400 regulations will be improved. Responses from local governments indicated that 266 items could not be accepted, and 948 items are under long-term review.

Regarding the improvements, to ease the financial burden on business operators, the minimum area subject to water supply infrastructure charges for factories will be raised from the current 750 square meters to 2,000 square meters, and businesses such as electronic component assembly plants that do not use water will be excluded from the charge. In addition, when calculating the total floor area for determining the charge, areas such as warehouses and parking lots that do not use water will be excluded, thereby rationally adjusting the cost burden for small manufacturers. The payment system has also been improved to expand eligibility for installment payments and to allow credit card payments, making it more convenient for payers to settle water supply infrastructure charges. Furthermore, the objection procedure has been clarified to ensure that payers have a clear means for relief.

Additionally, the application of water supply usage fee reductions for manufacturers and others will be expanded to further reduce the fixed cost burden on small and medium-sized enterprises and self-employed individuals. In cases where local governments do not have an industrial rate-which is much lower than the general (commercial) rate-in their water supply fee structure, a new industrial rate will be established so that manufacturers, such as factories, can benefit from reduced water supply costs. The scope of businesses eligible for the industrial rate will be expanded to include registered factories under the "Industrial Cluster Act" and manufacturing businesses classified under the Korean Standard Industrial Classification, making it possible for more businesses actually engaged in manufacturing to use water at lower costs.

For sewerage infrastructure charges, temporary structures, which differ from general buildings in terms of form, materials, purpose, and duration, will be eligible for reductions or differentiated charges based on whether wastewater is generated. To ease the payment burden, local governments that currently allow installment payments only for amounts over 100 million won will be required to lower the threshold, and provisions for payment by credit card and other methods will be specified to enhance convenience for payers.

The system for imposing and collecting sewerage usage fees-including calculation criteria, reductions, applicable targets, and procedures-will also be revised. For local governments that do not apply an industrial rate to manufacturers or lack an industrial rate in their fee system, a basis for the industrial rate will be established so that a lower rate can be applied.

Generally, sewerage usage fees are based on water supply usage, but in many local governments, if there is a significant difference between water usage and sewage discharge, the fee is based on the actual sewage discharge. However, in some local governments, the threshold for the difference between water usage and sewage discharge has been excessively set at 30%, resulting in some users bearing costs for unused services. To address this, the standard will be revised so that if the difference exceeds 10%, the sewerage usage fee will be based on the actual sewage discharge. In cases where the measuring instrument is broken (not intentionally damaged), local governments that currently apply the "maximum value from the past six months" for sewage discharge calculation will be required to use the "average of the previous three months," correcting excessive penalties.

Choi Seungjae, the Small and Medium Business Ombudsman, stated, "Through this revision of local regulations related to water supply and sewerage, the rationality and acceptability of self-governing regulations will be further enhanced, while small and medium-sized enterprises and self-employed individuals will benefit from reduced cost burdens, leading to tangible improvements in their business conditions. We will continue to renegotiate with local governments that responded with non-acceptance or long-term review to bring about changes that are beneficial to businesses."

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