Sinan-gun, Cost Reduction in Bus Fully Public Operation System Work Improvement

Annual Budget Savings of Over 300 Million Won Through Joining the Mutual Aid Association

Sinan-gun Public Bus (Photo by Sinan-gun)

[Asia Economy Honam Reporting Headquarters Reporter Kim Ki-woon] Sinan-gun, Jeollanam-do, through a business agreement, has joined the Jeonnam Bus Transportation Association and the Bus Mutual Aid Association, enabling not only a reduction in insurance premiums but also the creation of a bus-exclusive fuel card to receive fuel subsidies, expecting an annual savings effect of more than 300 million KRW.

According to Sinan-gun on the 7th, since the nationwide first full implementation of the public bus system in 2013, 76 public buses are currently operating. However, while subscribing to liability and compulsory insurance, the high loss ratio of general insurance companies has led to reluctance in new insurance subscriptions and the application of premium surcharges, resulting in high insurance premiums paid annually, which has been a financial burden factor. There was also an urgent need to improve the insurance contract renewal method, which occurs repeatedly every month throughout the year.

The county, after several business consultations since last year with the Bus Transportation Association, which includes private bus operators as members, received approval for membership from the Bus Transportation Association board in March, and from the 1st of last month, by signing an insurance contract with the Mutual Aid Association for public buses, simplified the renewal work that occurs frequently throughout the year to once a year and was able to reduce the budget by applying annual insurance premium discounts.

In addition, after completing the production of the bus-exclusive fuel card, starting from the 13th, by using the fuel card when refueling, a fuel subsidy of 380 KRW per liter will be supported, ensuring transparency and enabling an annual budget saving of more than 300 million KRW.

A Sinan-gun official said, “With proactive business improvements, the saved budget will not only provide better transportation services to residents but also serve as a model case for other local governments preparing for the public bus system.”

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