Seongnam City Temporarily Reduces Traffic Inducement Charges by 30%

Seongnam City Hall

[Asia Economy (Seongnam) = Reporter Lee Young-gyu] Seongnam City in Gyeonggi Province has decided to reduce the traffic inducement charge by 30% to ease the burden on self-employed individuals, small business owners, and companies struggling due to COVID-19.

The traffic inducement charge is an economic burden imposed on owners holding at least 160㎡ of space in facilities with a total floor area of 1,000㎡ or more that cause traffic congestion.

This year, without any separate application procedure, all liable parties will receive a bill with a 30% reduction in October.

Seongnam City expects that this measure will reduce the traffic inducement charges payable by self-employed individuals and small business owners by approximately 2.5 billion KRW.

The city partially amended the ordinance concerning the traffic inducement charge on the 10th.

Kang Bong-su, head of the city's Traffic Planning Division, stated, "We hope that the reduction in the traffic inducement charge will lead to rent reductions for small business owners and the self-employed."

Last year, Seongnam City imposed traffic inducement charges totaling 7.5 billion KRW on 9,549 facility owners.