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Unified Fee Guidelines Fuel Price Increases

Government Standardizes Inconsistent Certificate Issuance Fees for 11 Item Categories Across Local Governments; Price Hikes Deemed Inevitable

Critics point out that the government, which pledged to rein in soaring consumer prices, is instead issuing unified fee guidelines that would require public institutions to raise certificate issuance fees—fueling inflationary pressures across local governments.

Suwon City is reportedly reviewing revisions to fee collection standards for 14 types of fees in accordance with the directive.

The Ministry of the Interior and Safety released guidelines last September establishing "Standards for Fee Collection by Local Governments," ostensibly to unify inconsistent fees for various certificates and permits across the nation to ensure equitable financial burden for residents and businesses.

The rationale cited wide variations in standards—for example, Nonsan City charges 100,000 won for real estate agency office registration, while Anseong City charges only 900 won. The ministry standardized fee collection for a total of 11 item categories, including real estate agency office registration fees. Standard fee amounts can be adjusted by ±10% according to local circumstances.

The standard rates established by the ministry include: public property loan application fees (new) of 5,000 won (renewal 3,000 won) and factory registration fees of 1,000 won. Additionally, real estate agency office registration fees of 20,000 won (individual) and 30,000 won (corporate); medical facility opening notification fees of 40,000 won (change 20,000 won); medical facility opening license fees of 100,000 won (change 40,000 won); and sports facility business notification fees of 30,000 won (change 10,000 won).

Current rates in Suwon City (based on fee rate schedules revised in October last year) differ significantly from these standards. The city's public property loan application fee is 2,000 won for both new and renewal applications—3,000 won and 2,000 won cheaper than the standard rate, respectively.

Real estate agency office registration fees are 9,000 won (individual) and 20,000 won (corporate), a difference of approximately 10,000 won from government standard rates. Medical facility opening notification fees are particularly disparate at 37,000 won, and opening license (change) fees at 15,000 won compared to the standard rates.

Suwon City must also raise current fees through amendments to its certificate issuance fee collection ordinance.

The Consumer Prices Review Committee has pushed back against these moves, deeming the timing inappropriate given surging consumer inflation. Additionally, raising public utility rates is a sensitive matter, necessitating careful consideration of neighboring local governments' responses.

A city official stated: "Although Suwon City submitted an ordinance amendment following government guidelines, it was postponed to the latter half of the year due to consumer price stability concerns."

Another city official expressed concern: "It is difficult to understand how fee collection standards, while delegated to local government ordinances, have been uniformly standardized without respecting local autonomy. If public utility rates increase amid this price surge, resident backlash will be substantial."

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