Seoul City’s 'Ddarungi' Bikes to Feature Corporate Ads... Diversifying Revenue Structure and Improving Operational Efficiency

Promotion of Corporate Advertising to Improve Operating Profitability Due to Increased Usage... September Business Recruitment
Simplified Advertising Method with Corporate Logos Displayed Next to Ddareungi Logo, Focused on Corporate Image Promotion

[Asia Economy Reporter Lim Cheol-young] Seoul’s public bicycle system ‘Ddareungi’ will start carrying advertisements from the end of this year.

On the 5th, Seoul City announced that it will pilot corporate advertisements for the first time on public bicycles to improve the operating balance of ‘Ddareungi,’ which has become a beloved daily transportation means for Seoul citizens, with more than one in three citizens registered and nearly 5 million monthly rides. The initiative to attract corporate advertisements is part of a self-help measure for the sustainable improvement and development of Ddareungi. While Ddareungi is a transportation welfare service that cannot be judged solely on profitability, the city aims to diversify its revenue structure, which has been limited to usage fees, to enhance operational efficiency, as accumulated operating deficits could hinder service improvements.

Accordingly, the city applied for a regulatory sandbox exemption to the Ministry of Trade, Industry and Energy for the ‘advertising service using shared bicycles’ project and secured institutional grounds for introducing advertisements by receiving approval from the ministry in December last year.

Seoul City plans to promote corporate image advertising rather than specific product advertisements within the scope of maintaining the public nature and identity of ‘Ddareungi,’ maximizing the use of its friendly and positive image. This is expected to provide an opportunity to enhance the brand image of companies pursuing ESG management, such as environmental protection, linked to Ddareungi’s public values of ‘environmental protection through carbon reduction’ and ‘realization of transportation welfare through affordable short-distance daily transportation.’

The advertising method has been simplified to display the company’s logo or name alongside the Ddareungi logo on the right. The advertisement locations include the Ddareungi frame, rental station information signs, the Ddareungi app, and the official website. The city explained that the advertising scope was minimized considering user safety and urban aesthetics.

According to the estimated advertising price calculated through a cost survey conducted by a specialized firm in May, the minimum revenue from advertisements is expected to be about 1.3 billion KRW over two years. Seoul City plans to recruit advertisers around September after completing related administrative procedures. The advertiser will be selected as a single company, excluding businesses that harm the image of ‘Ddareungi’ or engage in gambling-related activities that do not conform to public order and morals.

Baek Ho, Director of Urban Transportation at Seoul City, said, “The essence of Ddareungi, loved by Seoul citizens, is a transportation welfare service for the people, and its value cannot be judged solely by profitability.” He added, “We decided to introduce advertisements to slightly improve the operating deficit inevitably caused by the increase in Ddareungi usage. By attracting corporate advertisements within the scope of maintaining Ddareungi’s public nature and identity, we will diversify the revenue structure, which was limited to usage fees, and enhance operational efficiency. We look forward to the participation of companies interested in values pursued by Ddareungi, such as carbon reduction and environmental protection.”

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