1. Compulsory reporting on freight rates and charges

- Article 4 (Reporting on Freight Rates and Charges) of the Enforcement Decree of the Trucking Transport Business Act

- Require trucking business operators to report on parcel freight rates and charges

2. Criteria for revocation of permission, etc.

- Attached Table 1, subparagraph 7, items S and T, and attached Table 4, subparagraph 9, item J of the Enforcement Decree of the Trucking Transport Business Act

- Strengthen penal provisions for any person who has not installed an enclosed cargo area and who has caused his or her cargo to drop by failing to comply with cargo fixation obligations

Prescribe penal provisions for violations concerning the direct operation of environmentally friendly trucks

(1) Reasons for Proposal

The growth of the parcel service market has caused social unrest concerning the treatment of parcel drivers and additional charges for island regions, etc. To improve the transparency of parcel charges and driver fees, the Amendment introduces a charge registration system for parcel delivery. It also aims to maintain order in the cargo market by prescribing sensible penal provisions to ensure compliance with permission standards, as new permissions for environmentally friendly trucks will be granted under the condition of non-transferable direct operation. The Amendment strengthens penalties to prevent traffic accidents caused by inadequately fixated cargo as trucking business operators in practice often fail to fulfill their obligations to fixate cargo which has led to major accidents such as that of Changwon Tunnel. The Amendment also increases the scope of orders for improvement issued by administrative authorities to trucking business operators, to provide trucking business operators with an opportunity to correct matters prior to administrative action.

(2) Major Provisions

A. Introduce a report system for parcel service charges (Article 4, subparagraph 3 of the Enforcement Decree newly inserted)

Introduce the charge report system for trucking business operators who collect, sort, and deliver cargo, in addition to two trucks and container vehicles.

B. Increase the scope of orders for improvement (Article 4-2 of the Enforcement Decree newly inserted)

Introduce expanded provisions to allow orders for improvement to provide trucking business operators with an opportunity to correct matters prior to administrative action to address a violation.

C. Prescribe penal provisions against violations of permission standards for environmentally friendly trucks (attached Table 1 of the Enforcement Decree amended)

Newly insert provisions on administrative action prescribing that where a person who has obtained a permission of a trucking transport business with an environmentally friendly truck entrusts the vehicle or management thereof to another person, the business shall be wholly suspended, and that the permission shall be revoked upon the third violation.

D. Strengthen the penalty against trucking business operators for dropping cargo

Strengthen the penalty against cargo dropped by at least two-fold and apply the maximum reduction disposition of the number of vehicles and promote the installation of enclosed cargo areas by prescribing that vehicles fitted with an enclosed cargo area shall be excluded from the penalty.