Charter Buses to Receive Fuel Subsidies Amid Rising Costs

South Korea is expanding its fuel subsidy program to include charter buses that are increasingly used for public transportation, such as commuting to work and school. The government announced that the revision to the Passenger Transport Service Act, which includes charter buses in the diesel fuel subsidy, passed the State Council meeting.

This move reflects the growing public function of charter buses, driven by increased demand for commuting and school transport. The proportion of charter bus operations for commuting and school purposes has risen significantly from 46% in 2005 to 73% in 2023. The government also recognizes the industry's financial strain due to prolonged high fuel prices, with average monthly fuel costs per vehicle increasing by approximately 370,000 won compared to the previous quarter.

The Ministry of Land, Infrastructure and Transport plans to revise the detailed guidelines for the fuel subsidy program, including the subsidy rate and payment methods, within the next month. The ministry urged the industry to prepare necessary procedures, such as applying for subsidy cards, in advance. Additionally, the government extended the fuel price stabilization subsidy for cargo and passenger transport by three months until the end of September, further easing the burden on the transportation sector.