Rest Area Prices Rise Over 11% in 2 Years
Top 10 Rest Areas Average Sales Price 6,304 Won
Prices Increase Despite Ministry of Land Proposals to Lower
As the Chuseok holiday approaches, the number of visitors to rest areas on the way home is expected to surge, and with rest area prices having risen by more than 11% over the past two years, citizens are likely to face increased financial burdens.
The food item with the highest price increase at rest areas was Tteokkochi, which rose by 18.5% (from 3,550 won to 4,208 won). [Photo by Yonhap News]
According to data submitted by the Korea Expressway Corporation to Cho Oh-seop, a member of the National Assembly's Land, Infrastructure and Transport Committee from the Democratic Party of Korea, the average selling price of the top 10 food items at rest areas as of last month is 6,304 won. This represents an 11.2% (634 won) increase compared to August 2021 (5,670 won).
The food item with the highest price increase is tteok-kkochi (rice cake skewers), which rose by 18.5% (3,550 won → 4,208 won). Following that are △hot dogs 16.8% (3,804 won → 4,443 won) △donkatsu (pork cutlet) 14.9% (8,984 won → 10,319 won) △udon 11.4% (5,884 won → 6,553 won) △hodu-gwaja (walnut pastries) 11.1% (4,391 won → 4,877 won), with the largest increases seen in the best-selling items.
The 'Rest Area Cartel' on the chopping block... Strong reform needed
The rise in rest area food prices is largely attributed to the commission fees taken by Doseonghoe, an association of retired Korea Expressway Corporation employees.
During last year's National Assembly audit of the Ministry of Land, Infrastructure and Transport, Democratic Party member Maeng Sung-kyu raised concerns, stating, "When a 10,000 won donkatsu is sold at a highway rest area, 4,100 won is the commission fee for the rest area operating company. Of this, 2,000 won goes to the Korea Expressway Corporation, but the problem is that Doseonghoe, an association of retired employees, also collects commission fees through its subsidiaries. Is this legitimate?"
People Power Party member Yoo Kyung-joon also pointed out that Doseonghoe has earned about 5 billion won in dividend income over the past five years through subsidiaries operating highway rest areas and gas stations. The chairman of Doseonghoe is typically a former high-ranking official at the Ministry of Land, Infrastructure and Transport or a former president of the Korea Expressway Corporation, which has become a kind of tradition.
Ministry of Land, Infrastructure and Transport plans to announce measures to dismantle construction sector cartels in October
Minister of Land, Infrastructure and Transport Won Hee-ryong proposed to the Korea Expressway Corporation last September to reduce highway rest area food prices by 10%, citing the controversy over 'inflated meal prices,' but the corporation instead raised prices.
Even considering increases in flour and minimum wage, complaints about excessively high prices inevitably arise at the sites.
In response, Minister Won instructed at the appointment of Korea Expressway Corporation President Ham Jin-gyu in February, "We must boldly dismantle the food chain among insiders linked to retirees," and last month emphasized, "We will first sever the cartel of vested interests linked to former officials of the Ministry of Land, Infrastructure and Transport, including road and railway bureaucrats."
Minister Won recently held a meeting with heads of audit institutions from 22 affiliated organizations under the Ministry of Land, Infrastructure and Transport, stating, "We will root out vested interest cartels that earn unfair profits and eliminate outdated practices," and emphasized, "We will begin rigorous reform efforts from the perspective of the public regarding housing, roads, and more."
Given that Minister Won specifically pointed to 'roads,' there is speculation that a large-scale reform of the Korea Expressway Corporation is highly likely. It is also known that the innovation plan related to the Korea Expressway Corporation will be included in the 'Measures to Dismantle Construction Sector Cartels' to be announced by the Ministry of Land, Infrastructure and Transport next month.
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