Regulations on River and Stream Usage Fees, Previously Inconsistent, to Be Improved in 1,031 Clauses

Small and Medium Business Ombudsman Collaborates with Local Governments to Improve Related Provisions
Achievements Include Abolishing Occupancy Fees Under 5,000 Won, Allowing Installment Payments, and Adjusting Interest Rates

Regulations on river and small stream occupancy permits, which varied by local governments, will be improved. This is to reduce the occupancy fee burden on small and medium-sized enterprises (SMEs) and small business owners and to enhance convenience.

The Small and Medium Business Ombudsman announced on the 24th that it will improve 1,031 provisions related to river and small stream occupancy fees in local ordinances. The improvements mainly focus on reducing the scope of occupancy fee imposition and costs, rationalizing the fee calculation method, and enhancing payment convenience.

Private businesses such as SMEs and small business owners use rivers nationwide by obtaining permits from the managing authorities and paying occupancy fees. They utilize these rivers for tourism facilities like water leisure or for residential and industrial purposes, and since they usually pay occupancy fees over a long period, the cost burden is considerable.

The method of imposing and collecting river occupancy fees is delegated to be stipulated by local ordinances. However, many local governments have not properly reflected the amendments, resulting in significant regional disparities in regulations that require improvement. Accordingly, the Ombudsman decided to improve 1,031 related regulations across 158 local governments.

First, occupancy fees under 5,000 won for river and small stream occupancy permits will not be imposed or collected. Many local governments had set the non-imposition threshold between 500 and 3,000 won, raising concerns about fairness. Therefore, the non-imposition threshold will be raised to "under 5,000 won" to alleviate the burden on payers.

River usage fees will be improved so that users "pay only for what they use." These fees are generally determined based on occupancy area, land price, usage-specific rates, and occupancy period. Previously, there was no daily proration rule for occupancy fees, so users had to pay the full monthly fee even if they used the river for only a few days.

Additionally, increases in occupancy fees will be limited to within 5% compared to the previous year. Since occupancy fees are based on land prices, a sharp rise in land prices increases the fee burden. In fact, from 2018 to 2022, land prices rose by an average of 8.5% annually based on official land prices, and some local governments directly reflected these increases in occupancy fees.

Payment of river occupancy fees will also become more convenient through installment payments and interest rate adjustments. To reduce the cost burden on occupiers, if the fee exceeds 500,000 won, it can be paid in 4 to 12 installments per year, with interest rates announced by the Minister of Land, Infrastructure and Transport or the Minister of the Interior and Safety (variable rates from 0.8% to 4.34%).

Kim Hee-sun, head of the Ombudsman support team, said, "The regulatory improvements in river and small stream collection ordinances are expected to reduce the burden on SMEs and small business owners and enhance convenience. We will continue to improve local ordinances to achieve regulatory improvements that are felt on the ground."