Ulsan City Lowers Traffic Inducement Charges by 30% This Year

All Facilities Scheduled for Charges in October... Total Reduction Expected to Reach 2.7 Billion KRW
Economic Burden Eased for Small Business Owners and Self-Employed Affected by COVID-19

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] The traffic inducement charge imposed on facilities in Ulsan city will be reduced by 30% this year.

Ulsan City announced on the 10th that, following the approval of the 'Ordinance on the Reduction of Traffic Inducement Charges in Ulsan City (Amendment)' by the city council and its promulgation and enforcement on August 6, all facilities subject to charges in October this year will have their traffic inducement charges uniformly reduced by 30%.

The city revised the related ordinance with prior cooperation from the Ministry of Land, Infrastructure and Transport to temporarily reduce the traffic inducement charges only for this year.

This measure aims to alleviate the burden on all businesses subject to the charge, which are experiencing difficulties due to a sharp decline in sales caused by reduced consumption amid COVID-19.

In particular, based on 2019 data, it was found that 87.9% of payers own facilities of 3,000㎡ or less, so the economic burden on small business owners and self-employed individuals is expected to be somewhat reduced.

The number of facilities subject to the charge was 2,604 as of last year, and the average reduction amount per facility is estimated at 1.04 million KRW, with a total reduction benefit of about 2.7 billion KRW expected.

Those subject to the charge will receive their October bills with the 30% reduction applied without any separate application procedure.

The traffic inducement charge is a system under the Urban Traffic Readjustment Promotion Act that imposes an economic burden on facilities with high traffic inducement to encourage traffic volume reduction. It is levied on owners of facilities with a total floor area of 1,000㎡ or more (3,000㎡ in Ulju-gun) within urban traffic readjustment areas.

The charge imposed in October this year is calculated based on the period from August 1 of the previous year to July 31 of the current year. The collected charges are used as funds necessary for expanding traffic safety facilities and improving traffic systems.

An official from Ulsan City said, "We hope that the economic support effects, such as rent reductions, will continue for small business owners and self-employed individuals who are struggling due to COVID-19."