"Frugal Gas Stations That Aren't Frugal... Only the Korea Expressway Corporation Profited" [2024 National Audit]

As some highway discount gas stations are effectively operating as 'emperor gas stations,' the supervisory agency, Korea Expressway Corporation, has been criticized for focusing solely on profit expansion by applying only part of the fuel tax reduction.

Citizens visiting the Mannam Square Discount Gas Station in Seocho-gu, Seoul, are refueling their vehicles. / Photo by Jo Yongjun jun21@

According to data submitted by Korea Expressway Corporation to Jeong Junho, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea, on the 21st, it was revealed that Wonil Distribution sells fuel at up to 297 KRW more expensive per liter at its discount gas stations.

Looking at the fuel prices at Wonil Distribution-operated discount gas stations in Chuncheon (Busan), Gangcheonsan (Gwangju), and Gangcheonsan (Daegu), gasoline is sold at up to 271 KRW more expensive per liter, and diesel at up to 297 KRW more expensive per liter.

Rep. Jeong said, "Considering the limited choice of gas stations due to the nature of highway driving, it is effectively allowing Korea Expressway Corporation to make excessive profits," and added, "It was confirmed that the corporation took no special measures until late September, just before the national audit, when it started issuing warnings."

The owner of Wonil Distribution is known to be Jeong Mo, who served as the chairman of the Korea Highway Rest Area Facilities Association, a group of rest area operators. The rest area operated by Jeong received the lowest rating for two consecutive years but continues to operate without being expelled.

Rep. Jeong also pointed out the profit-seeking issue of Korea Expressway Corporation. The corporation announced in August last year that it purchased diesel 15.6 KRW cheaper per liter due to a change in the bidding method. However, it was found that after the bidding method change, the corporation is actually losing about 8 KRW per liter. Before the change, the average price difference between discount gas stations and regular gas stations for diesel was 93 KRW per liter. After the change, the gap narrowed to 85 KRW. The difference was transferred as profit to Korea Expressway Corporation. The operating profit gap before and after the bidding method change increased from 21.9 billion KRW to about 24.4 billion KRW.

Rep. Jeong also criticized Korea Expressway Corporation for applying only part of the fuel tax reduction. Since 2021, the government has decided to reduce fuel tax three times to ease the burden on the public. However, according to Rep. Jeong, the corporation applied only part of the reduction in the first and second rounds.

Rep. Jeong said, "Since fuel prices are directly related to the daily lives of the people, active management and supervision by Korea Expressway Corporation are necessary," and added, "Unfair fuel sales at some leased gas stations must be eradicated promptly." He continued, "In this era of high inflation, Korea Expressway Corporation must take more proactive measures to share benefits with the people."