Gyeonggi-do Faces Loss of Hundreds of Billions in Public Funds Due to Defeat in Airport Bus 'Limited License' Case

Gyeonggi Province started the first operation of airport buses under a regular intercity bus license instead of a limited license in June 2018. However, the Supreme Court recently ruled against Gyeonggi Province regarding the refusal to renew the limited license and the introduction of the intercity bus license.

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province has been placed in a situation where it must pay hundreds of billions of won in public funds after ultimately losing a lawsuit regarding the conversion of airport bus licenses from 'limited licenses' to 'intercity bus licenses' during the tenure of former Gyeonggi Governor Nam Kyung-pil in 2018.

On the 23rd, Gyeonggi Province announced that it lost the lawsuit filed by the airport bus company 'Gyeonggi Airport Limousine Bus' against the province, which sought to cancel the refusal to renew the limited license period, with a final ruling by the Supreme Court.

The province introduced the 'limited license' system when airport buses were first introduced in 1997, granting licenses for a certain period. This was a measure to indirectly support airport bus operators at a time when the number of airport users was low.

Accordingly, bus companies with limited licenses were granted exclusive rights to the license along with some discretion over fares and route operations.

However, in 2018, the province converted the limited licenses for airport buses into general intercity bus licenses. This decision was based on the judgment that there was no need to provide the 'limited license' privilege anymore, as overseas travel had significantly increased and the profitability of airport bus operators had improved.

Then-Gyeonggi Governor Nam Kyung-pil refused to renew the limited licenses in June 2018 after Gyeonggi Airport Limousine Bus and others did not accept demands to reduce bus fares. The limited licenses were revoked and converted into general intercity bus licenses, allowing other operators to participate in the business.

In response, Gyeonggi Airport Limousine Bus filed a lawsuit against the province, claiming that the refusal to renew the limited license was unfair. The province countered that the refusal was a legitimate measure based on the increase in airport users and the average profitability of limited license transport operators.

The first trial court ruled in favor of the province, stating that "the purpose of reducing passengers' transportation costs and revitalizing public transportation is a public interest goal, and the purpose is legitimate."

However, the second trial court's judgment was different. The second trial court ruled against the province, stating that it was an "illegal disposition constituting abuse and deviation of discretion."

The Supreme Court also ruled this month in the appeal that the lower court's judgment was correct. The Supreme Court judged that "Gyeonggi Province should have comprehensively considered the airport bus operators' route operation periods, public interest contributions, and the extent of profits so far, but it did not specifically examine these factors before making the decision."

As a result of this final ruling, the province must reissue the limited license to Gyeonggi Airport Limousine Bus. There is also a high possibility that the province will have to pour public funds into a damage compensation lawsuit worth hundreds of billions of won.

The province must first compensate for the losses incurred by Gyeonggi Airport Limousine Bus over the past two years due to exclusion from route operations following the introduction of the general intercity bus license.

Additionally, the bus company newly entering the route with the general intercity bus license will no longer be able to operate due to this final ruling, making compensation for damages inevitable. It is known that the company purchased 74 airport buses at 180 million won each. The arithmetic calculation alone amounts to 13.3 billion won.

Gyeonggi Governor Lee Jae-myung recently stated on social media after the Supreme Court's final ruling, "It seems we will have to work hard to clean up the mess caused by the previous (local) government."

A provincial official explained, "Since the Supreme Court's final ruling has been made, we must reissue the limited license to Gyeonggi Airport Limousine Bus," adding, "We plan to take follow-up measures after legal review."

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