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[BUSINESS] · South Korea · 2 sources

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Incheon faces rising unpaid municipal levies and developer debts

Incheon Metropolitan City is facing significant challenges in collecting various municipal levies, with unpaid amounts accumulating across different sectors.

Environmental improvement charges, levied on owners of aging diesel vehicles to cover pollution costs, have seen collection rates stagnate in the 20% range for three consecutive years. Between 2023 and 2025, unpaid amounts reached tens of billions of won. Officials attribute this to administrative difficulties, such as outdated debtor lists involving deceased individuals or vehicles that have already been scrapped.

Separately, private developers owe approximately 24 billion won in metropolitan transportation facility charges. Some cases involve long-term delinquency exceeding five to ten years. For instance, a development association in Geomdan-gu has failed to pay over 7.7 billion won for a decade. These funds are intended for regional road, rail, and transit infrastructure. In response to these delays, which impact local residents' access to transportation, the city is considering compulsory collection measures, including the seizure of assets.