Six Major Economic Groups Express Concerns Over Side Effects of Safe Freight Rate System Revival

"Previously Caused Side Effects Such as Market Distortions"

The business community has expressed concerns over the passage of a bill to revive the Safe Freight Rate System in the National Assembly.

On July 23, six major economic organizations, including the Korea Chamber of Commerce and Industry, the Korea Federation of SMEs, the Korea Employers Federation, the Federation of Korean Industries, the Korea International Trade Association, and the Korea Federation of Middle Market Enterprises (listed in alphabetical order), issued a joint statement saying, "The business community regrets the passage of the amendment to the Trucking Transport Business Act for the reintroduction of the Safe Freight Rate System in the National Assembly's plenary session."

They continued, "We urge careful operation of the system going forward, as its previous implementation led to several side effects, including a sharp rise in freight rates and market distortions." They emphasized, "Above all, before the system is implemented, we hope that rational and objective freight rate standards, acceptable to all economic stakeholders, will be established through dialogue and consultation among market participants."

The Safe Freight Rate System is a policy that publicly announces minimum freight rates for truck drivers to ensure fair wages. It establishes and enforces 'safe transport rates' between shippers (companies commissioning freight transport) and carriers, and 'safe consignment rates' between carriers and truck drivers. The system was introduced temporarily for three years in March 2020 during the Moon Jae-in administration, but the Yoon Suk-yeol administration did not extend its expiration date. The Democratic Party of Korea sought to make the system permanent as soon as the 22nd National Assembly convened last year, but during the review process in the National Assembly's Land, Infrastructure and Transport Committee's subcommittee, it was revised to a three-year sunset clause.