This Year, Current 70% → 90% Increase Applied
Busan City (Mayor Park Hyung-jun) announced on the 2nd that it will raise the upper limit of the garage area reduction rate for car rental business operators from the existing 70% to 90%.
Busan City made this decision to resolve the ongoing economic downturn and the difficulty in securing garages for long-term rental vehicles owned by specialized credit finance companies.
This change is part of a system that reduces the required garage area for car rental business operators with a high proportion of long-term rental vehicles, according to the Enforcement Rules of the Passenger Transport Service Act. Previously, the garage area could be reduced by up to 70% depending on the proportion of long-term rental vehicles, but since the revision of the rules in September 2021, an additional reduction of up to 20% is possible depending on garage capacity.
Busan City expects that this increase in the reduction rate will significantly ease the management burden on car rental business operators. It is also anticipated that many vehicles owned by specialized credit finance companies in the metropolitan area will be additionally attracted to Busan. This will provide opportunities to attract additional vehicles despite limited parking space and is expected to have a positive impact on increasing revenue from acquisition tax and automobile tax.
Busan City expects this measure to help attract about 200,000 long-term rental vehicles owned by specialized credit finance companies and forecasts an increase in tax revenue of 247.6 billion KRW over eight years through this.
Hwang Hyun-cheol, Director of the Transportation Innovation Bureau of Busan City, said, “This relaxation of standards will be a great help to small businesses struggling due to the recent economic downturn,” and added, “We will continue to prepare various measures to reduce the burden on car rental business operators.”
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