Rest stop commissions to drop from 33% to 8%

Bids open for 8 rest stops including Yeoju, Gunwi

A view of the Giheung rest stop. (Photo unrelated to article content) [Herald DB]
A view of the Giheung rest stop. (Photo unrelated to article content) [Herald DB]

South Korea is introducing a direct-contract system for highway rest stops that cuts out intermediate operators, aiming to reduce the high commission burden on tenants and block preferential treatment for former officials. With commissions set to fall sharply, travelers can expect perks such as coffee priced under 2,000 won and promotional discount events.

The Ministry of Land, Infrastructure and Transport and the Korea Expressway Corporation announced Friday that they will accept open applications from businesses wishing to participate in a direct-contract pilot program at eight highway rest stops nationwide. The move follows up on a rest stop operational restructuring plan announced in July.

Under the pilot, the Korea Expressway Corporation will sign contracts directly with tenant businesses, slashing the commission rate from the existing 33 percent to 8 to 9 percent, excluding management fees. The corporation said it plans to encourage tenants to pass the savings on to customers through measures such as coffee priced under 2,000 won, convenience store buy-one-get-one promotions, and telecom carrier discounts and reward points.

The call for applications covers 10 operators to run restaurants, snack shops, cafes and convenience stores at eight rest stops: Yeoju, Gunwi, Jangyu, Daecheon (both directions), Wolchulsan and Hapcheonho (both directions). Operator selection is set to wrap up in early December, with the new direct-contract service slated to launch during next year's Lunar New Year holiday. The high-traffic Yeoju rest stop will also separately recruit local restaurant brands and youth startup stores.

Bidding criteria will also be tightened to prevent the involvement of former officials and conflicts of interest. Corporations established by groups of Korea Expressway Corporation retirees will face a 25-point deduction in bid scoring, and individuals who retired within the past three years, as well as current employees with related interests, will be barred from bidding. The corporation also plans to amend the charter of Doseong-hoe, a retiree association, to prohibit it from entering new business ventures and to require early withdrawal from existing ones.

Land, Infrastructure and Transport Minister Hong Ji-seon said the direct-contract system would reduce the commission burden on tenant businesses and ensure those savings flow back to customers. "We will also correct unreasonable practices that fall short of public expectations and build rest stops that are fair and trusted," Hong said.


hwshin@heraldcorp.com