As prices at highway rest areas nationwide remain uncontrolled, concerns are being raised about an 'interest cartel' issue as Doseonghoe, an association of retired Korea Expressway Corporation employees, is involved in rest area operations and generating profits.
The Ministry of Land, Infrastructure and Transport (MOLIT) is expected to include matters related to the Expressway Corporation in the 'Construction Sector Interest Cartel Reform Plan' to be announced next month, as Minister Won Hee-ryong has emphasized strong reforms across various sectors including housing, roads, railways, and aviation.
According to data submitted by the Expressway Corporation to Cho Oh-seop, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, as of August this year, the average selling price of the top 10 food items at rest areas was 6,304 won. This is an 11.2% (634 won) increase from August 2021 (5,670 won).
The food item with the highest price increase over two years was tteok-kkochi (rice cake skewers), which rose by 18.5% (3,550 won → 4,208 won). This was followed by hot dogs at 16.8% (3,804 won → 4,443 won), pork cutlet at 14.9% (8,984 won → 10,319 won), udon at 11.4% (5,884 won → 6,553 won), and walnut pastries at 11.1% (4,391 won → 4,877 won).
Previously, Minister Won announced a public institution innovation plan in September last year and formed a task force (TF) between MOLIT and the Expressway Corporation, but no significant results have been achieved. Additionally, MOLIT proposed a 10% reduction in rest area food prices, but the Expressway Corporation reportedly rejected it citing management evaluations and other reasons.
The Expressway Corporation maintains that it cannot directly intervene in food price setting. Instead, it seeks to find common ground by compensating cost factors such as rent or jointly purchasing ingredients, and considers recommending price reductions as the best approach.
The issue is that Doseonghoe participates in rest area operations through its wholly owned subsidiary, H&DE, and receives dividends. H&DE operates nine highway rest areas, including the Seoul Mannam Square (Busan direction) rest area, and one gas station. A portion of the profits generated here is distributed as dividends to Doseonghoe. Last year, 800 million won was paid out as dividends, which is about 1.3 times the net income for the period.
This issue has been pointed out multiple times during the National Assembly’s audit. Last year, Democratic Party member Maeng Sung-kyu from the Land, Infrastructure and Transport Committee questioned, "If a 10,000 won pork cutlet is sold at a highway rest area, the commission is 4,100 won. Of this, 2,000 won goes to the Expressway Corporation, so is it justifiable for Doseonghoe to also collect operating company commissions through its subsidiary?"
In response, the Expressway Corporation argued that joining Doseonghoe is not mandatory for retirees and that it holds no shares in H&DE. H&DE explained that as a corporation, it distributes dividends to its shareholder, Doseonghoe. A representative from the Expressway Corporation said, "Doseonghoe receives dividends because it invested. Above all, the profit sharing has nothing to do with the Expressway Corporation."
Meanwhile, Minister Won stated at the meeting of heads of audit institutions of 22 MOLIT-affiliated agencies on the 22nd, "We will eradicate interest cartels that unjustly gain profits and eliminate outdated practices," adding, "We will carry out strong reforms from the public’s perspective to restore trust and fairness in all sectors including housing, roads, railways, aviation, and safety management."
Therefore, it is anticipated that the interest cartel reform plan to be announced in October will include whether Doseonghoe receives preferential treatment in rest area operations and regulations related to hiring. When appointing Ham Jin-gyu as president of the Expressway Corporation in February, Minister Won also instructed, "We must boldly dismantle the food chain among insiders linked through retirees."
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