KLRI : KOREA LEGISLATION RESEARCH INSTITUTE

Ⅰ. Backgrounds and Purposes

□ While the central axis of passenger transportation has been reorganized to railways, COVID-19 has further reduced the use of intercity and express buses. This change has decreased the number of passengers using bus terminals and ticket sales consignment fees (ticket revenue), thus worsening the management situation of the bus terminals.

□ A bus terminal business requires an enormous amount of tangible assets, as it involves securing land of a specific size and constructing buildings. Furthermore, the annual increase in officially assessed land prices inflates the local tax (property tax) burden on operators, while the number of terminal users gradually decreases. Accordingly, the economic value and feasibility of such businesses has steadily deteriorated.

□ Bus terminals, categorized as urban planning facilities, are prohibited from housing golf driving ranges, singing rooms, logistics terminals, restaurants, convenience stores, coffee shops, pharmacies, and so on. This means that the terminals’ operators cannot attract other commercial facilities as a means to increase revenue.

□ As mentioned above, the management difficulties of bus terminal operators are being prolonged due to complex factors like decreased numbers of users and ticket sales consignment fees, an increase in the burden of local taxes due to a rise in officially assessed land prices, and restrictions on the installation of convenience amenities in urban planning facilities. As a result, terminal closures, which were previously concentrated in non-metropolitan areas, are now also occurring in the metropolitan area (for example, Seongnam Terminal and Goyang Hwajeong Terminal).

□ In areas lacking alternative transportation, such as railroads, bus terminals serve as the foundation of inter-regional transportation infrastructure. The temporary or permanent closures of these terminals causes great inconvenience to citizens traveling medium-to-long distances using intercity and express buses. In particular, the rights of mobility for transportation-vulnerable people, most of whom are elderly, may be severely limited. Additionally, there is concern that the decline of surrounding commercial districts due to transportation inconveniences will accelerate population outflows from smaller cities.

□ Various reviews and plans are needed to improve the management situations of bus terminal businesses and to ensure their sustainability. First, officials must develop a reasonable improvement plan by reviewing various measures, such as easing standards for bus terminalfacilities, reducing local taxes for real estate related to bus terminal projects, and allowing the rental of convenience businesses within passenger facilities. Additionally, measures for cases of terminals’ temporary or permanent closures must be prepared to reduce user inconvenience.

□ To maintain order for passenger transport businesses, the Passenger Transport Service Act prohibits, in principle, the provision of non-commercial motor vehicles for transport at a cost, except when permission is given by the mayor, county governor, or borough head for legal reasons.

□ The demand for non-commercial motor vehicles has recently increased due to the expanded number of private academies. However, official permits in these cases are not sufficiently carried out because of inaccurate awareness of paid or free transportation, lack of administrative power of local governments, and strict vehicle-age requirements.

□ Moreover, the permit and management system for such vehicles is dualized, resulting in inefficiencies and confusion. For example, cars for transporting children to and from educational institutions are subject to a commercial transport system by non-commercial motor vehicles under the Passenger Transport Service Act. Still, their management is carried out through a reporting system by the Ministry of Education and the National Police Agency.

□ A reasonable improvement plan must be prepared under the Passenger Transport Service Act to maintain the current status of passenger transportation and efficiently operate the commercial transport system by non-commercial motor vehicles for children.

□ By recognizing these problems and the need for research, this study analyzes the current status and issues in legislation related to bus terminal businesses and the commercial transport system by non-commercial motor vehicles under the Passenger Transport Service Act. Based on the analytical results, this study aims to suggest legislative improvement measures.

Ⅱ. Major Content

□ Chapter 2 analyzes the current status and problems in legislation related to bus terminal businesses and presents improvement measures.

□ Chapter 3 analyzes the legal status and problems related to the commercial transport system by non-commercial motor vehicles and suggests improvement measures.

□ Chapter 4 reviews the Automobile Terminal Act of Japan — a case similar to Korea’s. The researcher examines the status of legislation related to bus terminal businesses under this act and the commercial transport system by non-commercial motor vehicles under the Road Transportation Act. Based on the results, the chapter presents implications for the Korean case.

□ Chapter 5 summarizes the contents reviewed above to form a conclusion.

□  For this study, which was carried out according to the suggestion of the Ministry of Land, Infrastructure and Transport, the researcher received advice from individuals and experts from industry, government, academia, and research on policy and legislation related to the Passenger Transport Service. In addition, through frequent collaboration with the Ministry of Land, Infrastructure and Transport, in charge of the business, for references and data, the researcher improved the qualitative completeness and field adaptability of the results, sharing and disseminating research experiences and results along the way.   

 

Ⅲ. Expected Effects

□ This study will contribute to establishing a legal and theoretical foundation for the terminal structure and facility standards applied to bus terminal businesses.

□ This study will contribute to improving people’s mobility rights and enhancing convenience by easing and rationalizing regulations on commercial transport system by non-commercial motor vehicles.

□ This study will contribute to strengthening public transportation competitiveness and expanding the flexibility of public transportation services.