Highway rest stop system to be reorganized under public management, cartel to be eradicated

South Korea is set to overhaul its highway rest stop operating system, transitioning to public management next year in response to widespread corruption allegations involving former employees of the Korea Expressway Corporation (KEC).

The current structure, which involves KEC, an intermediary operating company, and vendors, has been criticized for fostering cronyism. Recent investigations revealed that KEC retirees, through a non-profit organization called Doseonghoe, allegedly monopolized rest stop operations. They are accused of leaking bid information and charging vendors exorbitant fees, reportedly averaging 33% of sales.

Under the new system, the Ministry of Land, Infrastructure and Transport will create a public management company. This entity will directly contract with vendors, simplifying the process and eliminating the multi-tiered structure that facilitated corruption. Furthermore, KEC retirees and their families will be barred from bidding on vendor contracts, and those currently operating rest stops will be required to sell them by September.

The government's move was prompted by a May audit that uncovered the alleged corrupt practices within Doseonghoe. The organization, which operates nine rest stops and seven gas stations through its subsidiary, allegedly distributed an average of 900 million won annually in dividends to its members under the guise of celebratory funds and condolence payments, while evading taxes. This exploitation of a non-profit entity for private gain has drawn significant public condemnation.

This reform aims to dismantle the entrenched interest cartel and improve the quality of services and prices at rest stops, which have long been criticized by users for being expensive and subpar. The ministry anticipates that the new system will reduce vendor fees by more than half, hopefully leading to better food and services for travelers.