Bus Passengers Halved... Ministry of Land, Infrastructure and Transport Accelerates Efforts to 'Revive the Industry'

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport (MOLIT) is implementing comprehensive support measures, including early budget execution, to assist the bus industry struggling due to a decline in passengers caused by the spread of the novel coronavirus infection (COVID-19).

According to MOLIT on the 30th, since the spread of COVID-19, express and intercity buses have seen a 60?70% decrease in passengers, while city buses have experienced a 30?40% decline.

Domestically, as the COVID-19 situation begins to stabilize, the rate of passenger decline is gradually decreasing, but as of the third week of this month, passenger numbers are still down by 60% for intercity buses, 52% for express buses, and 33% for city buses (Seoul), indicating that the situation remains challenging.

Since last month, MOLIT has implemented support policies such as exemption from highway tolls, early execution of 500 billion KRW in local government bus finances, and designation of charter and airport buses as special employment support sectors.

In addition, MOLIT has prepared further support measures to alleviate the burden on the bus industry.

First, the budget for operating loss support on non-profitable routes (25.1 billion KRW), included in the government budget for the first time this year, will be disbursed early, and local governments will additionally secure 70% of the budget to provide support.

The remaining budget of 11.8 billion KRW for the public bus project will also be executed without delay.

MOLIT plans to encourage local governments, which hold bus licensing authority, to secure additional budgets independently to support the bus industry. According to MOLIT, local governments nationwide are expected to secure an additional 100 billion KRW in bus finances between May and August.

Furthermore, considering the reduced operating distances due to reduced service after the spread of COVID-19, buses and taxis whose service life expires between July and December will not have that period counted toward their service life for one year.

The service life system limits the operational lifespan of buses and taxis; currently, buses can operate up to 9 years and may extend for 2 more years if safety requirements are met, while taxis have a service life of 4?9 years plus 2 years.

As a result of this measure, the burden of vehicle replacement costs is expected to be deferred by one year, amounting to 202.5 billion KRW for buses and 16 billion KRW for taxis.

Additionally, MOLIT will refund vehicle insurance premiums for city and intercity buses that have been out of service due to reduced operation caused by the decline in passengers. Insurance premium payments for all city and intercity bus companies will also be deferred for up to three months.

The deferral of insurance premium payments is expected to relieve a monthly insurance cost burden of 18.3 billion KRW for up to three months.

Oh Myung-so, MOLIT’s Director General of Comprehensive Transportation Policy, stated, "Considering that the bus industry, a major transportation means for ordinary citizens, is facing unprecedented difficulties due to COVID-19, we have strived to provide maximum support," and added, "We will continue to identify and implement policy measures needed on the ground."

This content was produced with the assistance of AI translation services.