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> Apparently, it turns red only when someone it taking their driving test, for a traffic light is part of the test. Locals in the know ignore the red, as they know it is only for the test.

Well... It'd be cheaper to just pretend the test did include a red light, then.

I think the idea is to not include in the test actual danger of running a red light at a functioning intersection.
I don't believe that is what the article is saying