City bus fares in Gyeonggi Province are expected to increase in late this year or early next year.
On the 6th, Gyeonggi Province announced that it is actively considering raising bus fares to guarantee appropriate operating costs for the bus industry amid skyrocketing diesel prices and rising labor costs.
To this end, the province has instructed the bus transport association to prepare service improvement measures accompanying the fare increase. Going forward, the province plans to conduct feasibility studies, hold public hearings, and undergo review by the Consumer Policy Deliberation Committee before implementing the fare increase in late this year or early next year.
The province takes the position that a fare increase is inevitable, citing that diesel prices per liter were 981 won at the time of the last fare increase in October 2004 but have recently surged to around 1,300 won, representing more than a 30 percent spike, and annual wage increases have also risen by approximately 5 percent each year.
The bus industry in the province recorded a net loss of 23.3 billion won last year, with some bus operators reportedly facing bankruptcy.
However, the province notes that neighboring metropolitan cities including Seoul and Incheon also plan to increase fares within this year, and will coordinate with these local governments on the increase rate and timing.
In October 2004, the province had raised the fare from 700 won (cash basis) to 850 won.
A provincial official stated, "The bus industry is facing difficulties due to soaring diesel prices and wage increases, so we are actively reviewing fare increase measures," and added, "However, we have requested that the industry prepare measures to ensure service improvements commensurate with the fare increase."
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