The Ministry of Land, Infrastructure and Transport said on the 13th it will begin work to improve the overall operating structure of highway service areas. The ministry judged that a structure in which the same operator has maintained rights for a long period or specific groups have taken on operations has led to higher prices and poorer service.
According to the Ministry of Land, Infrastructure and Transport (MOLIT), of the 211 service areas on government-funded highways, 194 are operated under lease arrangements. Of these, it was found that 53 have been run by the same companies for more than 20 years without an open competitive process. In particular, 11 have not changed operators for about 40 years since their initial contracts in the 1970s and 1980s.
The Ministry of Land, Infrastructure and Transport (MOLIT) also sees as a structural problem that Doseonghoe, an association of Korea Expressway Corporation retirees, is operating seven service areas through its subsidiary H&DE. Among these, two have effectively been run by the same entity for about 40 years. It was confirmed that, by convention, the head of Doseonghoe has been the president of the Korea Expressway Corporation, and retired senior officials have taken part as executives at the subsidiary.
Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport (MOLIT) inspected stores at a service area on the Gyeongbu Expressway that day and said, "Anyone using the highway has probably wondered at least once why service area food is expensive and not tasty, and why portions are small," adding, "As price burdens and service complaints have repeated, it is possible that service areas have been perceived as places people have no choice but to stop at even if they are expensive and unsatisfactory."
He added, "Many people likely think there is no reason for service area food to be expensive," stressing, "We need structural improvements so that service is provided at a level not different from outside commercial districts."
The Ministry of Land, Infrastructure and Transport (MOLIT) believes the limited competition in the operating structure has led to high tenant fees. Stores in service areas bear fees averaging 33% and up to 51%, which, it said, has pressured food prices upward and quality downward.
To address this, the government will form a "task force (TF) for overhauling the service area operating structure" to conduct a comprehensive review of the lease model, fee system, and operating standards. Based on the findings, it also plans to prepare institutional improvement measures.
The Minister said, "It is important to resolve the price burdens and service complaints that people feel when using highways," adding, "We will comprehensively review the operating structure so service areas can properly fulfill their role as convenience facilities."