Ministry of Land, Infrastructure and Transport Supports Vehicle Age Extension for Bus and Taxi Industries Facing COVID-19 Challenges

[Asia Economy Reporter Yoo In-ho] From September 1, the service life (vehicle age) of some bus and taxi vehicles will be extended by one year.

The Ministry of Land, Infrastructure and Transport announced on the 31st that the amendment to the Enforcement Decree of the Passenger Transport Service Act, which temporarily extends the basic vehicle age by one year to reduce the cost burden on the bus and taxi industries struggling with a decrease in passengers due to the novel coronavirus infection (COVID-19), will take effect from the 1st of next month.

According to the revised enforcement decree, the basic vehicle age of buses and taxis whose basic vehicle age expired or is scheduled to expire between August 31, 2018, and June 29, 2021, will be extended by one year.

Currently, buses and taxis used in passenger transport businesses have a limited basic vehicle age by type, but can be used for an extended period within two years if they meet the vehicle inspection standards of the Korea Transportation Safety Authority.

The applicable vehicles are limited to those that pass the current 24 vehicle inspections (vehicle inspections under the Automobile Management Act) conducted by the Korea Transportation Safety Authority, including driving, steering, braking systems, and emissions.

The Ministry of Land, Infrastructure and Transport estimated that the vehicles subject to this extension include 15,000 buses and 46,000 taxis. In particular, it is estimated that the burden of vehicle replacement costs, estimated by the industry at 2.25 trillion KRW for buses and 690 billion KRW for taxis, will be deferred by one year.

Eom Myeong-so, Director General of Comprehensive Transportation Policy at the Ministry of Land, Infrastructure and Transport, said, “Considering that the bus and taxi industries are facing unprecedented difficulties due to COVID-19, we have made efforts to reduce the cost burden on the industry by temporarily extending the basic vehicle age only for vehicles that pass the vehicle inspection.” He added, “We will closely monitor the impact of COVID-19 on the transportation industry and continue to seek support measures for the bus and taxi industries.”

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