'Heavy Rain Damage' Special Disaster Areas to Be Declared Soon in Over 10 Locations Including Chungcheong and Gyeonggi Regions

High Possibility This Afternoon... Prompt Review of Related Procedures

Due to the influence of the monsoon front, heavy rain continued for the fifth consecutive day on the 6th, causing the water level of the Han River to rise due to the discharge from Paldang Dam and Soyanggang Dam. Both directions of the Gangbyeonbuk-ro near Hangang Bridge in Seoul are submerged in the Han River water. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kwangho Lee] More than 10 areas in Chungnam, Chungbuk, and Gyeonggi regions, which suffered significant damage from heavy rain, will be declared special disaster zones. Once designated as a special disaster zone, these areas can receive government support for emergency measures, disaster relief, and recovery, including administrative, financial, fiscal, and medical assistance.

According to the government on the 6th, the Ministry of the Interior and Safety is currently conducting investigations and analyses of the scale of rain damage by region and proceeding with related procedures for the declaration of special disaster zones. The special disaster zones are finalized by the President after review by the Central Safety Management Committee and approval by the Prime Minister. The declaration is likely to be made in the afternoon of the same day.

Currently, about 10 locations including Cheonan, Asan, Geumsan, Yesan, Chungju, Jecheon, Jincheon, Eumseong, Danyang, and Gyeonggi are being considered. The necessity to declare areas such as Yeongwol, Cheorwon, and Hwacheon in Gangwon Province, where damage is increasing, is also growing.

Special disaster zones receive 50% of recovery costs funded by the national government, along with special policy support such as reductions and deferrals of taxes and various public utility charges, which differ from usual measures.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at an emergency inspection meeting on heavy rain damage held on the 5th, "We will mobilize all available resources including finances and tax systems to minimize damage and support rapid recovery," adding, "We will promptly support the existing budgets and contingency funds for the disaster-affected areas, and provide additional national funds to local governments declared as special disaster zones."

The government had already provided emergency relief funds of 200 million won to disaster areas affected by heavy rain on the 3rd. Additional contingency funds will be injected, and even before recovery plans are established, financial demands for emergency recovery will be urgently supported through consultations with related ministries.

The government will also ease the burden on taxpayers facing difficulties in tax filing or payment due to heavy rain damage. The deadlines for corporate tax and comprehensive income tax filing and payment will be extended by up to 9 months, and collection of already notified national taxes will be deferred for up to 9 months. For taxpayers affected by the rain damage, tax audits will be postponed or suspended until the end of the year.

Meanwhile, the government has previously designated special disaster zones four times. President Moon Jae-in declared three areas?Cheongdo, Gyeongsan, and Bonghwa in Gyeongbuk Province?as infectious disease special disaster zones in March due to severe damage from COVID-19, marking the first case for an infectious disease. In April last year, during the Gangwon Goseong wildfire, five areas?Goseong, Sokcho, Gangneung, Donghae, and Inje?were declared special disaster zones due to wildfire damage. In November 2017, Pohang was declared a special disaster zone following an earthquake, and in July of the same year, Cheongju, Goesan, and Cheonan were declared special disaster zones due to heavy rain damage.