Seoul to Improve Village Bus Operations and Intervals... Subsidies to Be Based on Number of Operating Buses
Operational Frequency and Scheduling to Reflect Actual Conditions
Subsidy Payments Based on Number of Buses in Service
Accounting Transparency Enhanced with Designated Firms for Each Operator
The Seoul Metropolitan Government has launched a quality improvement initiative aimed at accurately assessing the number of registered village buses and user demand, and making the frequency of operations and intervals between buses more realistic.
On August 28, the city announced that it will begin full-scale implementation of a village bus improvement plan based on three pillars: establishing clear operational routes, improving the subsidy support system, and ensuring accounting transparency.
Currently, there are 140 village bus companies in Seoul, operating 252 routes with a total of 1,630 buses. According to the city, despite a fare increase in August 2023 (from 900 won to 1,200 won) and expanded financial support for village buses, the number of operations per route has decreased by 24% compared to 2019, leading to greater inconvenience for citizens.
An analysis of vehicle terminal operation records revealed numerous cases of arbitrary operations by bus companies, such as failing to adhere to the first and last bus schedules and maintaining inconsistent intervals between buses. Additional issues identified include applying for subsidies based on the number of registered vehicles rather than those actually in operation, as well as inadequate accounting documentation.
To address these issues, the city will adjust the number of operations per route based on the number of registered village buses, operating hours, and user demand. For example, more buses will be deployed on weekdays when passenger demand is high, while the number of operations will be reduced on Saturdays and public holidays.
Discussions are currently underway between district offices and bus operators to determine appropriate operation frequencies. By October, the city plans to develop realistic operational route alternatives that take into account pilot operations by route, rest times for drivers, and deadhead distances for recharging.
The city also plans to change the subsidy support system from being based on the number of registered vehicles to the number of vehicles actually in operation. Previously, financial support for village buses was calculated based on registered vehicles, resulting in subsidies being paid even for buses not in service, which raised fairness concerns. The new system aims to address this issue.
Additionally, an incentive system will be introduced to provide more subsidies to companies with higher operation rates. Currently, 56 companies have an operation rate below 100%, with the average operation rate at approximately 85%. Among these, 22 companies have operation rates below 85%.
The city will also enhance the accounting transparency of bus operators. It will verify compliance with standard accounting guidelines and require each operator to appoint an accounting firm. If an operator receives an adverse opinion in an audit without a valid explanation, it will be considered as a failure to comply with the audit and appropriate measures will be taken. Furthermore, a joint annual inspection by accounting experts will be conducted to review the appropriateness of subsidy expenditures and accounting management. If misuse of subsidies is suspected, the city will recover the funds.
Kim Taemyung, Director of Transportation Planning for Seoul, stated, "Village buses are an essential part of daily transportation for citizens, and a decline in service quality should not occur despite ongoing financial support. We will develop practical improvement measures for the village bus service that reflect feedback from the field and can be truly felt by citizens."
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Meanwhile, the Seoul Village Bus Transport Association held a large-scale rally in front of the Seoul Metropolitan Council the previous day, demanding expanded financial support and fare increases for village buses, and even expressed their intention to withdraw from the transfer system.
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