Gyeonggi Province Improves Unreasonable Sewerage Cost Burden for Building-Type Auto Dealership Complex

[Suwon Ilbo=Park No-hun Reporter] Gyeonggi Province announced on the 2nd that the 'improvement of sewerage causation charge calculation method' for auto dealership complexes, which it had proposed to the government since July, was achieved through an amendment to the Ministry of Environment Notice (No. 2019-215) on November 25.

'Sewerage causation charge' is assessed based on the daily sewage generation standard by building use when sewage from buildings discharging wastewater is directed to and treated at public sewerage facilities during new construction or expansion. For auto dealerships, the daily sewage generation per square meter of building is 15 liters.
However, in recently newly constructed building-type auto dealerships, despite the complete absence of water supply and drainage facilities or sewage generation, charges reaching dozens of times the actual sewage generated were being assessed simply because used vehicle display spaces were located within the building.

In this regard, the province discovered industry difficulties in July when it learned of a case involving an auto dealership complex under construction in Suwon where a sewerage causation charge of 3.6 billion won was assessed (pending) for display space accounting for approximately 70% of the total floor area of 250,000 square meters where no sewage is generated.
Accordingly, the province visited construction sites to accurately understand the situation regarding sewage generation potential, conducted joint on-site consultations with relevant agencies, collected and reviewed extensive data including the status of similar projects in other provinces and sewerage charge assessment conditions, and prepared a reasonable amendment plan. The province then submitted a proposal for improvement of the relevant system to the Presidential Committee for Regulatory Reform Suggestion Box (www.sinmungo.go.kr).
With the Presidential Committee's recognition of the need for regulatory improvement and active coordination efforts, multiple meetings were held with the Ministry of Environment, which is the responsible agency. The Ministry of Environment also carried out sewage analysis surveys, expert reviews, and efforts to gather local government opinions, eventually amending and implementing the 'sewerage causation charge' calculation method.

With this notice amendment, when constructing an auto dealership complex, the area within vehicle display spaces where no sewage is generated is excluded, allowing 'sewerage causation charges' to be assessed reasonably.
Recently constructed mall-type dealership complexes feature hundreds of auto dealership companies located in one place, providing vehicle-related 'one-stop' services including sales, consultation, vehicle inspection, registration, and cancellation in well-maintained buildings, as well as cultural and leisure facilities such as cafes.

Ahn Dong-gwang, Chief of Policy Planning at Gyeonggi Province, stated, "This regulatory improvement case is an exemplary proactive administration case where central government, the province, and businesses collaborated to achieve major results in a short period of time, and we anticipate economic revitalization of the region through the establishment of modernized auto dealership complexes. Going forward, we will actively identify and improve unfair and unreasonable regulations to implement 'Fair Gyeonggi,' the province's policy direction."