Drowning in losses, Seoul to hike houshold sewer fees by 20% next year

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Drowning in losses, Seoul to hike houshold sewer fees by 20% next year

On April 13, a sinkhole measuring 40 centimeters (15.8 inches) in diameter and 1.3 meters (4.3 feet) deep opened near Aeogae Station in Seoul's Mapo District. The Seoul Metropolitan Government, suspecting a sewer pipe rupture as the cause, excavated beneath the sinkhole to conduct a detailed investigation. [JOONGANG ILBO]

On April 13, a sinkhole measuring 40 centimeters (15.8 inches) in diameter and 1.3 meters (4.3 feet) deep opened near Aeogae Station in Seoul's Mapo District. The Seoul Metropolitan Government, suspecting a sewer pipe rupture as the cause, excavated beneath the sinkhole to conduct a detailed investigation. [JOONGANG ILBO]

 
Plagued by aging pipes and mounting costs, Seoul is preparing to hike household sewer fees by 20 percent next year — the first step in a steep five-year climb.
 
The Seoul Metropolitan Government announced Thursday that its pricing proposal to increase sewer charges passed a review by the city’s Price Policy Committee. Under the plan, household sewer rates will rise by an average of 9.5 percent annually through 2030, nearly doubling by the end of the period.
 

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Next year, the rate for household use will jump from 410 won (30 cents) per ton to 480 won, and reach 770 won by 2030 — an 88 percent spike over current rates. For a single-person household using an average of six tons of water monthly, that means a rise from 2,400 won to 2,880 won in 2025. A four-person household using 24 tons a month will see its bill rise from 9,600 won this year to 11,520 won next year, and to 18,048 won by 2030.
 
City officials said the hike is necessary because current fees fall far short of actual costs and urgent investment is needed to fix deteriorating sewer infrastructure. As of 2023, the cost recovery rate of Seoul’s sewer system was just 56 percent — the lowest among Korea’s major cities, the city noted. While the average cost of processing one ton of sewage stands at 1,246 won, the blended average rate charged to households and businesses is only 693 won.
 
Seoul aims to raise the cost recovery rate to 80 percent by 2030 through annual fee increases.
 
The capital’s sewer network spans 10,866 kilometers (6,752 miles), and over half — about 6,029 kilometers — is more than 30 years old. The city’s four main water treatment plants — Jungnang, Nanji, Seonam and Tancheon — are also showing their age at over 30 years old as well. Aging pipes, along with poor construction, have been cited as key causes of the recent spate of sinkholes appearing in central Seoul.
 
The city also plans to scrap the progressive pricing system currently applied to household water use. Officials said that 98.6 percent of users fall into the lowest tier, rendering it largely ineffective. Moving forward, households will pay a flat rate. For businesses, the current six-tier rate structure will be simplified to four tiers, with the burden on small-business owners in mind.
 
Seoul will carry out administrative procedures for ordinance revisions through July and submit the final rate proposal to the Seoul Metropolitan Council for review and approval in September. The proposed rate hikes and timeline remain subject to revision during the legislative process.
 
“We deeply ask for the public’s understanding as we move to raise sewer charges amid ongoing inflation,” said Jeong Seong-guk, head of the Seoul Water Circulation Safety Office. “This rate hike is a necessary step to protect public safety and improve water quality.”

BY HAN EUN-HWA [[email protected]]
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