Capital Region Ready-Mix Concrete Transportation Fee to Increase to 3,100 Won This Year and 3,300 Won Next Year

Transportation fees for ready-mixed concrete (Remicon) in the Seoul metropolitan area will increase by 3,100 KRW per trip this year and by 3,300 KRW next year.

[Image source=Yonhap News]

According to the Remicon industry on the 6th, the Remicon manufacturers and the Korean Federation of Trade Unions Remicon Transport Labor Union reached a final agreement on this negotiation proposal in the Yeoju and Icheon regions, which are among the 12 regions in the metropolitan area.

Previously, the Seongnam and Yongin regions had also tentatively agreed to a similar level of increase.

Negotiations on Remicon transportation fees in the metropolitan area are conducted separately for each of the 12 regions. However, since the increase rate is usually standardized, it is expected that the other regions will reach agreements at similar levels.

Accordingly, the current average transportation fee per trip in the metropolitan area, which is 69,330 KRW, will rise to 72,430 KRW this year (a 4.47% increase) and further increase by 3,300 KRW to 75,730 KRW next year (a 4.28% increase).

This year's increase will be applied retroactively from July 1, according to customary practice.

A union official stated, "There are still regions where conflicts remain over the increase rate or the wording of the agreement," but added, "In most regions, agreements are nearly finalized, and the final agreements are expected to be signed sequentially."

Negotiations on Remicon transportation fees in the metropolitan area began in July. At the start of the negotiations, manufacturers insisted on freezing transportation fees, while the union demanded an increase of around 8,000 KRW, making it difficult to reach an agreement. However, after more than ten rounds of talks, both sides tentatively agreed on this increase proposal.

However, opinions differed regarding the baseline for calculating the increase rate after 2026. Manufacturers requested that the increase rate after 2026 be specified as "the inflation rate of the relevant year." In contrast, the union argued that the term "price index" should be used instead of "inflation rate."