Supreme Court: “Consumers can be charged for water supply within the supply area”

The Supreme Court ruled that local governments can impose water infrastructure fees on water users based on their respective ordinances. In a lawsuit filed by agricultural corporation A against the county mayor of Yeongam in South Jeolla Province, the Supreme Court upheld the lower court’s decision against the plaintiff’s appeal to cancel the imposition of infrastructure fees. In 2016, Yeongam County completed drainage and water supply infrastructure construction in the Sanho-ri area of Samho-eup, following complaints from A and local residents. Subsequently, A, as the owner of a new 4-story building, applied for a new water supply construction in Yeongam County. When A did not agree to discussions on infrastructure fees in June 2017, the county imposed a fee of over 37 million won for the 2nd and 3rd floors of the building used as lodging in February of the following year. A contested that the lodging facility should not be subject to the infrastructure fee. The key issue in the case was whether the lodging facility was subject to the infrastructure fee. Both the lower courts concluded that the lodging facility fell under the jurisdiction of Yeongam County’s ordinance for infrastructure fee imposition, a decision that was also upheld by the Supreme Court based on the provision in the Water Supply Act allowing local governments to collect infrastructure fees according to their ordinances. Yeongam County’s ordinance specifies that buildings with a floor area over 600 square meters or more than 15 guest rooms supplying tap water within the water supply area are subject to infrastructure fees, which includes A’s lodging facility.