Measures Including Full Freeze on Public Utility Fees and Facility Usage Charges
[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City (Mayor Lee Yong-seop) has introduced extraordinary measures to alleviate the burden on citizens struggling with an unprecedented emergency situation due to the prolonged COVID-19 crisis and to revitalize the local economy.
On the 19th, according to Gwangju City, Mayor Lee Yong-seop announced the "2nd Countermeasure to Protect the Local Economy from COVID-19," which includes three major livelihood stabilization measures such as a blanket freeze on public utility charges benefiting the majority of citizens.
First, Gwangju City, the five district offices, and public institutions will not raise public utility charges and facility usage fees this year.
Gwangju plans to freeze six major public utility charges directly managed by the city (bus, taxi, urban railway, water supply, sewage, and city gas fees), three fees operated by autonomous districts (volume-based waste bag prices, food waste disposal fees, and septic tank cleaning fees), and various facility usage fees operated by public institutions to prevent an increase in the burden on ordinary citizens.
Accordingly, fares for public transportation such as buses, taxis, and urban railways, as well as water supply, sewage, and city gas fees, will be frozen. Additionally, the volume-based waste bag prices, food waste disposal fees, and septic tank cleaning fees under the jurisdiction of autonomous districts will be maintained at current levels. Usage fees for facilities such as the Senior Health Town within the Gwangju Welfare Foundation and swimming pools and ice rinks managed by Gwangju Urban Corporation, as well as various sports facilities, will also be frozen.
In particular, the public parking lot fees scheduled to increase in September will be postponed to next year after discussions with the Gwangju City Council. Gwangju manages a total of 54 paid public parking lots with 3,173 spaces, about half of which are concentrated in traditional markets and commercial centers such as the Yangdong Covered Market upper parking lot, expected to reduce the burden on parking users and revitalize commercial districts simultaneously.
Furthermore, for small business owners, water supply, sewage fees, and water usage charges will be reduced by 50% for three months. Accordingly, about 27 billion KRW in relief benefits are expected to be provided to 46,591 small and medium-sized businesses using less than 100㎥ of water per month under the "Act on the Protection and Support of Small Businesses."
Secondly, as part of the small business support policy, usage fees and rents for city-owned public properties and facilities under affiliated public institutions will be significantly reduced.
Gwangju plans to reduce rents for 573 rental facilities among city-owned public properties, lowering tenants' burdens by up to 1.748 billion KRW.
Especially, following the enforcement of the amendment to the "Enforcement Decree of the Act on Public Property and Goods Management" (effective March 24), which allows local governments to choose usage fee rates between 1% and 5% instead of the fixed 5%, Gwangju will maintain the usage fee rate at the lowest level of 1% (an 80% reduction) for the next six months.
Additionally, seven city-affiliated public institutions, including Gwangju Urban Corporation and Gwangju Urban Railway Corporation, will reduce rents for 154 rental facilities by 50% until July, providing a total relief benefit of 281 million KRW. This effectively amounts to a full rent exemption for three months.
Thirdly, Gwangju City will grant property tax reductions on buildings to "good" landlords and rental institutions voluntarily lowering rents to share the economic difficulties of the local economy.
The eligible targets are landlords and institutions who have reduced or plan to reduce rents by 10% or more for at least three months before the tax base date of June 1.
The city plans to reduce property tax payments for buildings due in July by up to 50% of the rent reduction rate, with a maximum limit of 1 million KRW.
About 360 stores in the city, including 1913 Songjeong Station Market, Gwangju Outlet, and Dongmyeong-dong, have been identified as participants in the so-called "Good Rent Movement."
Mayor Lee Yong-seop said, "While freezing public utility charges and various relief policies have limitations in saving the local economy that is in critical condition, they will provide substantial help to ordinary citizens and small business owners facing difficulties due to income reduction. On one hand, we will fight COVID-19, and on the other, we will focus on revitalizing the local economy."
He added, "The third countermeasure is being prepared as a Gwangju-style emergency disaster income support plan for vulnerable groups whose livelihoods are threatened by COVID-19."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
