Annual Charges Imposed Every October on Facilities with a Total Floor Area of 1000㎡ or More
Gangnam-gu, Seoul (District Mayor Jo Seong-myeong) will accept advance applications for exemptions during August ahead of the regular traffic inducement charge assessment scheduled for October this year.
The traffic inducement charge is an economic burden imposed on facilities that cause traffic congestion based on the principle of charging the cause. It is levied every October on owners of facilities with a total floor area of 1,000㎡ or more.
The charge is calculated as ‘sum of each floor’s floor area × unit charge (per 1㎡) × traffic inducement coefficient.’ The unit charge (per 1㎡) is 700 KRW for facilities up to 3,000㎡, 1,400 KRW for those over 3,000㎡ up to 30,000㎡, and 2,000 KRW for those exceeding 30,000㎡.
For facilities with a total floor area under 3,000㎡, the unit charge is applied at 50%. In 2024, approximately 5,183 facilities in Gangnam-gu are subject to this charge, with an estimated total of 34.5 billion KRW to be levied.
The assessment reference date is July 31 of this year. Among these, owners of facilities that have been unused (vacant) for 30 days or more due to special reasons such as non-lease, temporary closure, or business suspension during the assessment period from August 1 of the previous year to July 31 of this year must apply during August to receive exemption benefits. To apply, owners must complete the ‘Unused (Vacant) Facility Report’ sent along with the advance notice of the traffic inducement charge and submit it to the district office’s Traffic Administration Division by visiting in person, registered mail, fax, or email.
Additionally, if the actual use of the building differs from the building register, owners must submit a ‘Facility Actual Use Report’ with supporting documents. In cases where ownership has changed during the assessment period, the new owner can request a pro-rata calculation to receive a charge notice calculated according to the ownership period.
The traffic inducement charge is used as funding for low-carbon, eco-friendly transportation policies aimed at solving urban problems such as traffic congestion and air pollution.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
