Gangnam-gu, Reduction of Traffic Inducement Charges to Alleviate Burden on Self-Employed Workers

Urging Seoul City for 2020 Regular Tax Reduction... 9,700 Businesses to Benefit 9.9 Billion KRW with September Ordinance Amendment

[Asia Economy Reporter Park Jong-il] Gangnam-gu (District Mayor Jeong Soon-gyun) announced that starting from September, over 8,700 businesses in the area will benefit from the traffic inducement charge reduction system proposed to Seoul City to revitalize the local economy, which has been depressed due to COVID-19.

The traffic inducement charge is a fee imposed on owners of facilities above a certain scale that cause congestion, used for urban traffic improvement costs. According to the Ministry of Land, Infrastructure and Transport guidelines, after revising the ordinance, the traffic inducement charge for all applicable facilities in Seoul City will be reduced by 30%.

This system was initiated by Gangnam-gu to alleviate the economic burden on self-employed individuals who have recently faced management difficulties due to a sharp decline in visitors and sales. In March, the district proactively urged Seoul City to establish a system for reductions during the COVID-19 outbreak period, which was accepted.

Accordingly, once the Seoul City ordinance is revised in September, more than 8,700 businesses in the area will be able to receive a reduction in charges amounting to 9.9 billion KRW.

Shim In-sik, Head of the Traffic Administration Division, stated, “We will continue to closely cooperate with central government agencies and Seoul City to minimize the damage to residents caused by the COVID shock, and proactively discover and implement measures to overcome it.”