Gwangju City to Promote Establishment of Gwangju Transportation Corporation Subsidiary

Diversifying Business Using Operational Expertise... Generating Revenue

Gwangju Transportation Corporation building.

Gwangju City is moving forward with the establishment of a subsidiary under Gwangju Transportation Corporation ahead of the opening of Urban Railway Line 2. To this end, the city announced a legislative notice for the 'Ordinance Amendment on the Establishment of Gwangju Transportation Corporation' on the 3rd.

The ordinance amendment mainly stipulates that Gwangju Transportation Corporation may establish a subsidiary with the mayor's approval and invest in the said corporation. The subsidiary will be a joint-stock company, with the corporation investing 100% of the capital.

The city's push to establish a subsidiary under Gwangju Transportation Corporation aims to diversify its business and generate revenue by leveraging the corporation's expertise in urban railway operations. Specific business areas include railway operation and maintenance.

The city plans to gather public opinion this month and submit the ordinance amendment to the city council next month. Among the six metropolitan cities currently operating urban railways nationwide, subsidiaries have already been established in the transportation corporations of Seoul, Busan, Daegu, and Incheon, except for Daejeon.

An official from Gwangju City stated on the 5th, "While operating the urban railway, which is considered a symbol of universal transportation welfare, Gwangju Transportation Corporation has been facing chronic deficits, so there is a growing need to actively seek separate revenue-generating businesses. With the upcoming opening of Urban Railway Line 2, the workload is expected to increase significantly, making it necessary to prepare by establishing a subsidiary."

The official added, "The ordinance amendment is a preliminary measure to provide the legal basis for establishing a subsidiary," and "Specific schedules regarding the establishment have not yet been determined."

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