This study examines the current criteria for determining public transportation fares, and suggests how the system should be improved in response to the likely future of transportation demand.
In deciding public transportation fares, the foremost principle should not be profit, but the protection and accommodation of passengers. The fares should also be set at levels that are adequate to support the stable development and growth of transportation agencies and corporations. Once the purposes of public transportation are thus clarified, we should review regulation with an objective of preventing unfair and discriminatory fares.
The demand for public transportation services has been growing since the 1960s, through the rise and decline of railways, the expansion of highways, and the increasing convenience and safety of transportation by air. The emergence of B-747, DC-10 and other such fast aircraft has facilitated international transportation tremendously, helping businesses to save time and money, and also raising the demand for fast and pleasant trips by airplane.
The overarching principle that has guided transportation fares in Korea so far is cost. This, however, has made it difficult to repair and improve transportation facilities. Korean transportation businesses need to outgrow this cost-centered paradigm, and introduce more flexible fare schemes, charging appropriate amounts for transportation, which passengers are willing to pay, and investing the surplus into improving and expanding transportation facilities. The future transportation fare system should enable various modes of transportation to compete with one another and thereby promote the efficiency of the overall transportation system.
The goal should be to reduce the rigidity of the current fare system, and increase the flexibility of fares by encouraging competition among different modes of transportation and taking into account business factors other than the cost, such as sales performance and fluctuations in demand.
교통운임제도의 문제와 개선대책(Problems of the transportation fare system and solutions)
|Journal Title; Vol./Issue||한국개발연구:vol. 3(no. 4)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < Transport/Logistics|
|Holding||KDI; KDI School|