Charter bus fuel subsidies to be paid from July 16, at 250,000 won per vehicle monthly

Charter buses in South Korea will receive a monthly fuel subsidy of approximately 250,000 won (about $180) per vehicle, starting July 16. The Ministry of Land, Infrastructure and Transport announced the revision of the 'Passenger Motor Vehicle Fuel Subsidy Payment Guidelines' to provide relief to the industry facing high fuel costs.

The subsidy targets about 39,000 diesel-powered charter buses, representing 97% of the total fleet. This includes both the fuel tax-linked subsidy and the oil price-linked subsidy. Based on average usage and current prices, the monthly support is estimated at around 250,000 won per bus. The program is set to run for one year, until July 15, 2027, with potential extensions if the national security alert for resource supply is raised to 'alert' or higher, or if the average diesel price exceeds 1,500 won per liter.

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We hope this measure will improve the treatment of charter bus operators and workers, and enhance charter bus services.

Park Jae-soon, head of the Ministry's Transport and Logistics Office, explained that the decision was made due to the increasing public role of charter buses, including their use for commuting and school transportation, and the recent high-cost burden exacerbated by Middle East tensions. "We hope this measure will improve the treatment of charter bus operators and workers, and enhance charter bus services," Park stated. He also urged the industry to make self-regulatory efforts to prevent subsidy fraud and improve user services.

To prevent fraudulent claims, the ministry will only provide subsidies for payments made with dedicated fuel cards for charter buses. The system will also continuously monitor for unusual transaction patterns, such as frequent refueling. Companies found to have engaged in fraudulent subsidy claims will face full recovery of the subsidized amount and suspension of subsidy payments for all their vehicles.

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He also urged the industry to make self-regulatory efforts to prevent subsidy fraud and improve user services.