Breaking the Parasitic Structure That Monopolizes National Licenses for Profit Extraction
[Asia Economy Reporter Kim Min-young] On the 6th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated, "We will fundamentally improve the structural problems that have been temporarily managed and barely endured until now, leaving the fundamental issues of the freight transportation industry unaddressed."
In his opening remarks at the ruling party-government meeting on 'Measures to Normalize the Freight Transportation Business' held at the National Assembly, Minister Won said, "We will break the parasitic structure where those who do not actually work monopolize national licenses and extract profits in the middle."
The government's 'Measures to Normalize the Freight Transportation Industry' announced that day focus on abolishing the 'Safe Freight Rate System' for freight trucks and introducing a 'Standard Freight Rate System.' The standard freight rate system does not enforce freight rates between shippers and carriers but requires annual publication in a guideline format. This allows shippers to autonomously set freight rates and conclude transportation contracts.
Minister Won said, "We will break the abnormal parasitic structure where the labor share that should go to the actual drivers is extracted in the middle under various pretexts such as plate trading and stamping fees without providing transportation work, and this cost is passed on to shippers and consumers, the public." He added, "We will fundamentally improve the consignment system, which no previous government has dared to touch."
The 'Consignment System' refers to a system where freight truck drivers enter into a consignment contract with a carrier holding the transportation business license (license plate) to receive work. He explained, "Accordingly, license plates that carriers took money for without providing work will be transferred in ownership and registration to the drivers to fundamentally protect them."
Minister Won also said, "We will practically protect hardworking drivers," and "The freight rates paid by carriers to drivers will be guaranteed based on transparent and objective cost calculations."
He emphasized, "Until now, efforts were made only to raise freight rates, while overwork, overloading, and long working hours were effectively neglected as blind spots to earn more money. We will eradicate this." He added, "We will thoroughly monitor driving records to check whether actual rest is observed and whether shippers bear no responsibility in cases of overloading, taking measures to free drivers from overwork and overloading."
Furthermore, Minister Won stated, "The so-called safe freight rate system has only been verbal, avoiding substantial safety measures, losing market functions due to collective mob logic at each moment, and causing a vicious cycle of wage increases. We aim to break this chain." He concluded, "Through in-depth discussions in the ruling party-government meeting and the National Assembly, I hope that this opportunity will lead to system improvements that practically protect hardworking drivers, reduce the burden on the public and the economy, and genuinely ensure safety."
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