Party-Government Meeting on the 6th at the National Assembly to Normalize the Freight Transport Industry
Requesting Legislative Cooperation from the Opposition Party as Well
[Asia Economy Reporters Kum Boryeong and Kim Youngwon] The People Power Party and the government have decided to eliminate 'specialized consignment companies' related to freight transportation from the market. Along with this, they plan to abolish the freight truck 'Safe Freight Rate System' and introduce a 'Standard Freight Rate System.'
Seong Iljong, the Policy Committee Chair of the People Power Party, said on the morning of the 6th at the National Assembly after a party-government meeting to prepare measures for normalizing the freight transportation industry, "There are specialized consignment companies that rely on consignment fees in the transportation system, and some companies survive solely on consignment, showing little interest in transportation itself. We agreed that such companies must be eliminated from the market."
Sung Il-jong, Chairman of the Policy Committee of the People Power Party, is speaking at the Party-Government Council meeting on normalizing the freight transportation industry held at the National Assembly in Yeouido, Seoul, on the morning of the 6th. (Photo by Yonhap News)
Seong further explained, "If there are illegal or tax evasion activities related to this, we also agreed that fundamental reforms are necessary, and such companies will face license revocation measures. We also agreed that if transportation companies focus solely on consignment fees and do not provide a certain proportion of work to the truck owners but only receive transportation fees, strict inspections and sanctions should be imposed."
Regarding vehicle registration by transportation companies, plans are in place to allow registration under the names of both the cargo owner and the truck owner. This is to firmly guarantee the ownership rights of the truck owners.
Seong said, "Consignment companies reportedly charge 20 to 30 million won as a license plate rental fee when truck owners purchase vehicles. It is very important how this money is recorded in the accounting books and where the profits are attributed. This money should be recorded as corporate income, and if it is used personally, it constitutes significant tax evasion."
Accordingly, the party and government have decided to establish a Freight Truck Unfair Practices Reporting Center within the Ministry of Land, Infrastructure and Transport. Seong said, "If truck owners believe that their rightful earnings have been exploited through unfair trade practices during normal operations, we hope they will report it. We are determined to implement reforms in these areas."
The party and government also agreed to introduce the Standard Freight Rate System. To this end, they plan to submit the so-called 'Freight Transportation Reform Bill' to the National Assembly.
Seong stated, "The bill is being drafted and will be submitted as soon as possible to expedite the process. It will be promoted as a key legislative bill focused on improving citizens' livelihoods."
Kim Jeongjae, the ruling party's ranking member of the National Assembly Land, Infrastructure and Transport Committee, said, "We will do our best for prompt legislation," and added, "We ask opposition lawmakers to cooperate in the Land Committee with the mindset of laying the foundation for a century-long plan for the freight transportation market."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
