Ulleung County and Daejeo Ferry Finalize Operating Deficit Adjustment Plan Mediated by Anti-Corruption and Civil Rights Commission

Foundation Laid for Stable Resumption of Operations
for the Eldorado Express Ferry

The Daejeo Ferry's "Eldorado Express," which operates on the Pohang-Ulleung route, signed a final adjustment plan on May 30, 2025, mediated by the Anti-Corruption and Civil Rights Commission, to resolve the issue of unpaid operating deficits with Ulleung County.

They are taking a commemorative photo after reaching a final agreement on the adjustment plan for the operating deficit of the Eldorado Express, a public ferry of Ulleung County, under the supervision of the Anti-Corruption and Civil Rights Commission. Photo by Daejeo Ferry

With the signatures of the Anti-Corruption and Civil Rights Commission, North Gyeongsang Province, Ulleung County, Pohang Regional Office of Oceans and Fisheries, and Daejeo Ferry, a stable operational foundation has been secured for the Eldorado Express, a public ferry selected through a public contest.

The Eldorado Express officially began service in July 2023 and was selected as a public ferry through Ulleung County’s 2019 public contest project.

However, after its official launch and up to the first quarter of 2024, the ferry did not receive operating deficit payments from Ulleung County due to reasons such as failure to meet the "daily living sphere" requirement and disagreements over the "income calculation criteria."

As a result, the implementation agreement was effectively suspended after the first quarter of 2024, and worsening liquidity led to management difficulties, prompting the company to file for corporate rehabilitation proceedings at the Busan Bankruptcy Court in January 2025.

Subsequently, Daejeo Ferry filed a grievance with the Anti-Corruption and Civil Rights Commission in February. In March, key stakeholders?including the commission’s vice chairperson, officials from North Gyeongsang Province, Ulleung County, Pohang Regional Office of Oceans and Fisheries, and Daejeo Ferry?conducted an on-site investigation and working-level meeting at Ulleung County Office, focusing on major issues.

Following this, in April of last year, the Anti-Corruption and Civil Rights Commission presented the first adjustment plan. The operating deficit calculated based on this plan amounted to approximately 5.6 billion KRW. The plan also specified that, going forward, an external professional agency would determine the appropriate operating deficit, and the corresponding amount would be paid as an annual fixed subsidy.

Afterward, Ulleung County expressed objections to certain items through its county administration adjustment committee. In response, Daejeo Ferry proposed to forgo the 2023 operating deficit payment (about 3 billion KRW), taking into account the limited local financial resources of North Gyeongsang Province and Ulleung County.

North Gyeongsang Province and Ulleung County then agreed to reflect this in the fixed subsidy to be paid in the future, and they also accepted Ulleung County’s position regarding the loan criteria. This led to an agreement on the major issues and accelerated the adjustment plan discussions.

It was also agreed that income calculation criteria would be based on the guidelines of the Ministry of Oceans and Fisheries and the settlement standards used by the Korea Shipping Association, which are adopted by domestic coastal ferry operators. It was finally decided that, in the future, a fixed subsidy determined annually by an external professional agency based on the actual operating deficit would be paid. This was confirmed with the signatures of all relevant agencies on May 30, 2025.

According to the final adjustment plan of the Anti-Corruption and Civil Rights Commission, the unpaid operating deficit will be paid as soon as possible after going through internal procedures within Ulleung County. In addition, a system for paying a fixed subsidy based on the actual operating deficit determined by an external professional agency is expected to be established.

With this, the Eldorado Express has secured the foundation to stably fulfill its transportation role as a public ferry of Ulleung County, ensuring the mobility rights of local residents, and is expected to make a substantial contribution to improving regional transportation welfare in the future.