[The Editors' Verdict] Strengthening the Role of Postal Services as a Universal Service

As the novel coronavirus disease (COVID-19) pandemic prolongs, visits to the post office have become more frequent. This is mainly for sending important documents via registered mail. Occasionally, there are also products delivered through the post office courier service. However, most people use email or private courier companies. Still, the post office is trusted because it is operated by the government, and its fees are affordable. Childhood memories of handwritten letters and stamp collecting also come to mind nostalgically.

However, in the era of digital transformation, controversy surrounds the role of the post office. With the implementation of mobile electronic notifications through platforms like Kakao, the volume of postal bills for public utilities has significantly decreased. Recently, issues have arisen regarding the hereditary succession of directors and the hiring of relatives at special post offices established to provide postal services in areas without a post office. In July last year, an unprecedented nationwide strike by postal workers occurred, and there were also cases of postal workers dying due to excessive workload. Meanwhile, amid the emphasis on the state's role during disasters, the public functions of the post office?such as mask sales, radon mattress collection, and disaster area support?have been highlighted.

Thus, the postal service is caught in a dilemma where revenues decline due to government policies and competition with the private sector, while expectations for fulfilling public duties remain high. So far, the government has responded to these issues with cost-cutting measures such as staff reductions and post office consolidations, which have resulted in decreased accessibility to post offices for the elderly, disabled, and rural populations. Efforts to improve management efficiency through rate increases or restructuring conflict with the public nature of postal services.

For regular mail, the volume decreased by 30.9%, from 4.4 billion items in 2010 to 3.04 billion in 2018, and the market share of post office courier services in the domestic parcel market dropped from 8.9% in 2012 to 8.4% in 2018. Consequently, the operating deficit increased from 43.9 billion KRW in 2011 to 111.5 billion KRW in 2019, making it difficult to improve the deficit. It is now time to reset the principles and direction of the entire postal service.

First, maintaining publicness as a universal service should be considered the primary principle of the postal service. Universal service means services with affordable fees and consistent quality that are easily accessible to all users in all areas within the service domain. Unlike private companies that build networks centered on cities, the postal service has established nationwide networks extending to towns and villages, providing universal services at the national level to citizens in communication blind spots.

Until now, the government has emphasized an independent accounting system for the postal service as a public enterprise, pursuing a balance between efficiency and publicness. However, it is necessary to prioritize publicness, which means providing universal services, over efficiency or market logic that have reached their limits. Of course, efforts to eliminate inefficiencies through internal management innovation should continue, but plans to cover deficits by increasing fees or reducing services, which increase the burden on citizens, need to be reconsidered. Specifically, for the operating losses caused by maintaining deficit post offices, support from the general account could be considered. Currently, the postal business operates under a special account, covering expenditures with its own revenues. Special accounts are appropriate for sectors that can function fully with their own revenues through efficient expenditure management, but the reality of the postal business does not meet this criterion.

Next, regarding the organization, the postal service is currently operated as a business headquarters under a government ministry, headed by a first-grade civil servant. To strengthen the publicness of postal services as a universal service and enhance independent decision-making capabilities, consideration should be given to elevating it to an independent agency. Since the establishment of the Postal Bureau in 1884, the postal service is the oldest public service, and it is hoped that it will strengthen its role as a universal communication service trusted and loved by the people.

Seong-Yeop Lee, Professor, Graduate School of Technology Management, Korea University / Director, Technology Law Policy Center

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