Naju City Launches Investigation into Local Transport Companies' Route Cancellation Controversy

[Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Naju City, Jeollanam-do (Mayor Kang In-gyu) has launched an investigation into Naju Transportation Co., Ltd., a local transportation company accused of habitual illegal turnarounds and route cancellations.

The city announced on the 31st that it will conduct a full survey of all route buses and safe return buses operated by the company in 2020, while also investigating whether loss compensation funds (financial support funds) provided to the company over the past two years were illegally executed.

In particular, the city plans to analyze and share with citizens the background and causes of the annual increase in loss compensation funds, and to prepare and urge strong administrative measures such as recovering support funds for illegal operation activities and improvement plans.

Over the past five years, the increase in loss compensation funds provided by the city to Naju Transportation Co., Ltd. compared to the previous year was 3.434 billion KRW in 2017, 3.794 billion KRW in 2018, 953 million KRW in 2019, and 532 million KRW last year.

The city explained that regarding the reasons for the increase, since 2016, in order to improve the quality of public transportation services, the Ministry of Land, Infrastructure and Transport’s recommended method of calculating transportation costs has been applied, reflecting annual increases in wages and inflation, including labor costs and vehicle maintenance costs such as fuel costs that constitute transportation costs.

Additionally, the support funds have increased annually due to factors such as complaints about improving residential (transportation) conditions in the Gwangju-Jeonnam joint innovation city, and the establishment of new routes and additional buses due to increased public transportation demand in the Nam-pyeong Riverside City.

The city plans to conduct a detailed investigation into the legality of the loss compensation funds spent by the company over the past two years, focusing on the appropriateness of the support funds, by commissioning a professional accounting institution in accordance with the Certified Public Accountant Act.

Regarding route cancellations including illegal turnarounds, considering the seriousness of the matter, administrative measures and recovery of the subsidized funds will be enforced upon detection.

The city plans to complete the fact-finding investigation on route cancellations by September by meticulously cross-checking all bus operation data submitted by the company with the city-operated ‘Bus Information System’ (BIS).

Earlier, after investigating the truth of route cancellations by Naju Transportation Co., Ltd. exposed through recent media reports and information disclosure requests, the city confirmed a total of 39 instances of route cancellations and imposed a fine of 27.5 million KRW on the company on the 18th.

A city official stated, “From next year, we plan to check for cancellations monthly before disbursing loss compensation funds. We will strive to ensure the appropriateness and transparency of subsidy execution through annual audits, while improving and providing friendly and high-quality public transportation services.”

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