Expected Charges of 42.6 Billion KRW Across All Tourism, Exhibition, and Distribution Sectors with 12.8 Billion KRW Benefits
Rent Reductions Expected to Help Overcome COVID-19 Crisis
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Busan City has decided to reduce the traffic inducement charge imposed on facility owners by 30%.
This measure was taken to ease the burden on small business owners, self-employed individuals, and companies experiencing economic difficulties due to the prolonged COVID-19 pandemic.
The "traffic inducement charge" is a system that imposes an economic burden on facility owners who cause traffic congestion according to the Urban Traffic Improvement Act, aiming to reduce traffic volume.
It is imposed on owners of facilities with a total floor area of 1,000㎡ or more within urban traffic improvement areas. As of last year, 18,995 cases amounting to 38.3 billion KRW were collected in the Busan area alone. All collected funds are used as resources for expanding traffic safety facilities and improving traffic systems.
The city quickly took action by revising the "Busan Metropolitan City Traffic Inducement Charge Ordinance" on the 23rd to allow for reductions in the traffic inducement charge imposed every October.
This established a basis for reducing the traffic inducement charge when regional economic downturns are expected due to disasters including COVID-19.
It is expected to be good news especially for the tourism industry, which has been struggling due to COVID-19. In fact, with this reduction measure, Exhibition Hall A is expected to receive tax support benefits of 270 million KRW, and Hotel B about 40 million KRW.
Byun Sung-wan, Acting Mayor of Busan, said, "Out of the total expected imposition amount of 42.6 billion KRW for Busan City this year, 12.8 billion KRW will be reduced to ease the economic burden on facility owners."
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