'Yeosu-Hamgumi (Geumodo)' Added as a Publicly Subsidized Route Expansion... Up to 70% Support for Operating Deficits

Yeosu-Hamgumi (Geumodo) Route.

[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Oceans and Fisheries announced on the 24th that the Yeosu-Hamgumi (Geumodo) route has been additionally selected as an expanded support route under the quasi-public operation system.

The quasi-public operation project for coastal passenger ships is a project in which the government supports operating costs for shipping companies operating routes in island areas with low profitability due to low passenger numbers, to prevent route discontinuation and thereby improve transportation convenience for island residents.

Until now, the government designated routes that were discontinued due to deficits as "subsidized routes" and supported them through commissioned operators. However, since 2018, through the expanded support project of the quasi-public operation system, the scope of support has been expanded to include general routes where a one-day living zone is not established or routes with deficits for two consecutive years, providing operating cost support. Through this, last year, a one-day living zone was established in island areas such as Gageodo, Baengnyeongdo, and Geomundo, and by supporting deficit losses to operators who recorded deficits for two consecutive years, route discontinuation was proactively prevented.

The Yeosu-Hamgumi route, mainly used by island residents of Hwajeong-myeon, Yeosu City (Jedo, Gaedo, Jabongdo, Geumodo) when visiting downtown Yeosu, was operated twice daily round-trip by Shin-A Shipping's Hanryeo Ferry No. 9. Due to accumulated deficits caused by a decrease in passengers, there was concern that passenger ship operations might be suspended or the number of trips reduced, which was expected to cause significant inconvenience to island residents.

Accordingly, the Ministry of Oceans and Fisheries plans to support up to 70% of the annual operating deficit by additionally selecting the Yeosu-Hamgumi (Geumodo) route as an expanded support route under the quasi-public operation system. As a result, concerns about suspension or reduction of passenger ship operations will be alleviated, improving transportation convenience for island residents and enhancing living conditions in island areas, the ministry expects.

Yoon Doo-han, Director of the Coastal Shipping Division at the Ministry of Oceans and Fisheries, said, "The additional selection of expanded support routes under the quasi-public operation system is expected to help not only the stable operation of coastal passenger ships, which are the only means of transportation for island residents, but also shipping companies facing operational difficulties." He added, "We will continue to actively expand the quasi-public operation project for coastal passenger ships so that living conditions in island areas can continuously improve."

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