Travelers may soon be able to enjoy 24-hour convenience stores and coffee priced around 1,000 won at highway rest areas.
The Ministry of Land, Infrastructure and Transport announced on July 9 a reform plan to shift the operation of highway rest areas from the existing multi-stage structure to a direct contract system.
The ministry pointed out that the previous structure, which flowed from the Korea Expressway Corporation (KEC) to rest area operators and then to individual vendors, led to high commission fees, ultimately resulting in expensive food prices at rest areas.
A survey revealed that rest area operators took an average of 33 percent of the revenue from vendors (up to 51 percent), while the KEC collected 13.9 percent of the operators' revenue as rent.
In response, the ministry has decided to restructure operations by establishing a public management company starting next year to sign direct contracts with vendors.
The plan will be applied sequentially to rest areas as their current contracts expire, with about 100 locations expected to operate under the direct contract system next year. The ministry aims to expand this to 80 to 90 percent of all highway rest areas (approximately 200 locations) nationwide by 2030.
For the eight rest areas that are newly established or have expiring contracts this year, the KEC will temporarily handle the direct contracting process.
Hong Ji-sun, Second Vice Minister of Land, Infrastructure and Transport, stated, "While it is difficult to mandate this policy for privately funded roads, we will negotiate with newly built private roads to strengthen the public nature of their rest areas. We will also provide guidance and recommendations to existing rest areas to improve commission fees and services."
Through this reform, the average rent burden on vendors is expected to drop from the current 33 percent of revenue to the 8 to 9 percent range.
Even when including management fees, this is less than half of the previous cost.
The government plans to ensure that these reduced rents lead to higher-quality services and more reasonable prices.
First, the ministry will improve bidding criteria to select companies that offer affordable prices while guaranteeing food quality and service.
It is expected that more vendors, such as professional dining brands and popular local restaurants that reflect the preferences of users, will enter the market.
To ensure fairness in bidding, an external evaluation committee will be introduced, and annual performance reviews of operators will be conducted.
The ministry emphasized that the appearance of rest areas will change significantly from the past through these reforms.
For instance, convenience stores at rest areas, which typically close at 10:00 PM, are expected to switch to 24-hour operations.
Like regular convenience stores, they will offer "1+1" discount promotions and allow the accumulation and use of mobile carrier points.
It is also expected that there will be more space within convenience stores to cook and eat simple meals such as lunch boxes, gimbap, and cup noodles.
The reduction in rent will also make it easier for low-cost coffee brands to enter the market.
The ministry expects that the price of an Americano, currently around 4,800 won, could fall to below 2,000 won.
In addition, the ministry plans to operate youth-run stores to support early-stage startups and use additional revenue generated from rest area land to improve services.
Furthermore, the ministry has prepared measures to enhance fairness, such as blocking "ex-official privileges."
Current KEC employees and those who have retired within the last three years, as well as their spouses and immediate family members, will be excluded from bidding for store spaces.
The ministry will also strengthen monitoring by building a database of retirees.
The Doseonghoe, an organization of KEC retirees, and its subsidiaries will be prohibited from participating in the rest area business.
The organization is expected to amend its articles of association to sell off the six rest areas it currently operates immediately.
Minister of Land, Infrastructure and Transport Kim Yun-deok said, "Due to an irrational structure that has been entrenched for decades, people have had to endure the inconvenience of high prices and lackluster service at rest areas. We will return the rest areas to the public."
(Photo: Provided by the Ministry of Land, Infrastructure and Transport, Yonhap News)