Gyeonggi Province announced on March 21st that it will be applying a new local bus fare, along with Seoul Metropolitan Government and Incheon City Government, as of April 1, 4:00 a.m.
The average fare will be raised by 13.3% for bus cards and 17.5% for cash payment. 

* Newly introduced discounts for youths and children for Red Bus and Express Red Bus

The increase that has come after 2 years and 5 months of price stability was inevitable, due to deterioration in the financial situation of the bus companies, which has been triggered by a rise in transportation-related costs, such as gasoline and wages.

Gyeonggi Province had previously refrained from raising bus fares in consideration of the burden brought on citizens who use public transportation. However, this increase was made inevitable by the deteriorating financial condition of the bus companies, triggered by rises in costs such as gasoline and wages, as well as the fact that the current bus fare that is below actual cost. As a result, Gyeonggi Province decided to adjust the bus fare, 2 years and 5 months since the last price increase on October 15, 2004.

* Gasoline prices have increased by 55%, and wages have increased by 7% since the last fare raise on Oct. 15, 2004.

In order to ensure the fare was raised by an appropriate and rational margin that will pose the least burden to citizens, 7 different open discussions and public hearings were held to collect various opinions. In compliance with the Article 9 of the Passenger Transport Service Act and the Article 25 of its enforcement regulations, the Gyeonggi Province Bus Transportation Association (hereinafter “Bus Association”) submitted an application to raise the bus fare on June 21, 2006, based on the prime cost analysis research by the Korea Institute of Management Innovation.
Gyeonggi Province verified the validity of the prime cost submitted by the Bus Association based on the ‘2006 Assessment of Management and Service of Gyeonggi Province Bus Transportation Industry’ conducted by the Gyeonggi Research Institute and suggested an arbitration proposal.

In order to ensure its arbitration proposal was appropriate, valid, objective, and would burden its citizens the least, Gyeonggi Province made a final decision after collecting opinions from various sectors of society through holding open discussions (2 times) joined by the Gyeonggi Province Policy Committee, which is composed of bus-related experts, Provincial Assembly (Construction and Transportation Committee), experts, civil groups, and the general public, and after passing deliberation of the Gyeonggi Province Consumer Policy Deliberation Committee, held on January 25.