Busan City Hall

City Government

Ordinances

HOME > City Government > Ordinances

BUSAN METROPOLITAN CITY ORDINANCE ON THE OPERATION OF AND SUPPORT FOR DEMAND-RESPONSIVE TRANSPORT

By Transportation Innovation Division Dec 16, 2025 22  Views
Attachments
내용

BUSAN METROPOLITAN CITY ORDINANCE ON THE OPERATION OF AND SUPPORT FOR DEMAND-RESPONSIVE TRANSPORT

Enforcement Date: Dec. 25, 2024

Enacted by Busan Metropolitan City Ordinance No. 7460, Dec. 25, 2024
Busan Metropolitan City (Transportation Innovation Division)

  • ●Article 1 (Purpose)

  • ●The purpose of this Ordinance is to prescribe matters necessary for the operation of and support for on-demand passenger transport in order to enhance transport welfare for citizens residing in areas underserved by public transport, thereby guaranteeing citizens’ right to mobility and contributing to improved mobility benefits.

  • ●Article 2 (Definitions)

  • ●The terms used in this Ordinance are defined as follows:

  • ○1. The term “on-demand passenger transport” means a means of transport used for on-demand passenger transport business under Article 3 (1) 3 of the Passenger Transport Service Act (hereinafter referred to as the “Act”), referring to motor vehicles falling under item 7 of Appendix 1 to the Enforcement Rule of the same Act;

  • ○2. The term “areas underserved by public transport” means areas designated by the Mayor of Busan Metropolitan City (hereinafter referred to as the “Mayor”) from the cases falling under any of the items of Article 3 (1) 3 of the Act, where city buses or village buses are not operated on a regular basis, or where long headways result in a limited number of trips;

  • ○3. The term “total-cost bidding system” means a system under which Busan Metropolitan City (hereinafter referred to as the “City”) selects the transport operator who proposes the lowest total cost required for bus operation conditions presented by the City, and under which the City manages the fare revenues;

  • ○4. The term “net-cost bidding system” means a system under which the City pays the on-demand passenger transport operator (hereinafter referred to as the “Transport Operator”) the difference between revenues and costs as forecast by the City, whereby revenues accrue to the Transport Operator and the City pays only the contracted difference;

  • ○5. The term “platform” means an application program used on mobile communication devices or an internet website, etc., for operating on-demand passenger transport.

  • ●Article 3 (Relationship with other ordinances)

  • ●Except as otherwise provided by other ordinances, matters concerning the operation of on-demand passenger transport and support therefor shall be governed by this Ordinance.

  • ●Article 4 (Basic Plan)

  • ●(1) The Mayor shall, each year, formulate a basic plan of Busan Metropolitan City on the operation of and support for on-demand passenger transport (hereinafter referred to as the “Basic Plan”) for the systematic and efficient operation of on-demand passenger transport.

  • ●(2) The Basic Plan under paragraph (1) shall include the following matters:

  • ○1. Basic goals and directions;

  • ○2. Financing plans;

  • ○3. Operational plans, including the method for selecting the Transport Operators, fare systems, platforms, settlements, etc.;

  • ○4. Action plans in the event of an emergency;

  • ○5. Other matters the Mayor deems necessary for the operation of and support for on-demand passenger transport.

  • ●Article 5 (Selection of operators)

  • ●(1) Where the Mayor intends to grant a limited license under Article 4 (3) of the Act to a person who intends to obtain a license to engage in an on-demand passenger transport business, the Mayor shall select the operator by the total-cost bidding system.

  • ●(2) Notwithstanding paragraph (1), the Mayor may select an operator by the net-cost bidding system, etc., in consideration of the efficiency of fiscal management. In such cases, the selection shall be subject to deliberation by the Busan Metropolitan City Committee on the operation of on-demand passenger transport under Article 6.

  • ●(3) The term of a limited license for an on-demand passenger transport business shall be within 6 years; provided, where the business is to continue after the expiration of the limited license, an application for renewal shall be filed not later than 3 months before the expiration date.

  • ●Article 6 (Committee)

  • ●(1) The Mayor shall establish the Busan Metropolitan City Committee on the Operation of On-demand Passenger Transport (hereinafter referred to as the “Committee”) to deliberate on the following matters concerning the operation of on-demand passenger transport:

  • ○1. Selection of operation areas;

  • ○2. Matters concerning methods of operation and service levels, etc.;

  • ○3. Matters concerning the calculation of operating costs;

  • ○4. Matters concerning changes in the method of selecting the Transport Operators;

  • ○5. Other matters the Mayor deems necessary for the operation of on-demand passenger transport.

  • ●(2) The matters subject to deliberation by the Committee under paragraph (1) shall be deliberated by the Busan Metropolitan City Transport Committee under the Busan Metropolitan City Ordinance on the Transport Committee. In such cases, the Busan Metropolitan City Transport Committee shall be deemed the Committee under paragraph (1).

  • ●Article 7 (Fares)

  • ●Fares for on-demand passenger transport shall be the same as the city bus fares.

  • ●Article 8 (Compensation for transfer-discount deficits)

  • ●The Mayor may, under the Busan Metropolitan City Ordinance on Financial Support to the Passenger Transport Service, compensate passenger automobile transport business operators implementing the transfer-discount system for deficits arising from the operation of on-demand passenger transport.

  • ●Article 9 (Customer Support Center)

  • ●(1) The Mayor may have the Transport Operator operate a Customer Support Center to handle the following matters:

  • ○1. Vehicle calls (reservations) via Customer Support Center telephone, call button, or other means, and the provision of dispatch information;

  • ○2. Receipt of civil petitions regarding inconveniences in the use of on-demand passenger transport and the platform, and replies on the handling results;

  • ○3. Receipt of reports and replies on the handling results with respect to emergencies related to the operation of on-demand passenger transport;

  • ○4. Other matters the Mayor deems necessary for citizens’ convenience of use.

  • ●(2) Detailed matters concerning the operation of the Customer Support Center shall be determined separately by the Mayor.

  • ●Article 10 (Service evaluation)

  • ●(1) The Mayor shall conduct at least 1 service evaluation each year to provide citizens with pleasant and convenient on-demand passenger transport services; provided, where the license period during the year is less than 6 months, the operator shall be excluded from evaluation.

  • ●(2) For the service evaluation under paragraph (1), the Mayor may require the Transport Operator to submit materials necessary for the evaluation, and may utilize the evaluation results when renewing licenses or providing financial support.

  • ●(3) Where the results of the service evaluation under paragraph (1) are unsatisfactory, the Mayor may recommend service improvements to the Transport Operator.

  • ●Article 11 (Operation of on-demand passenger transport by Gu/Gun)

  • ●(1) Where the head of a Gu/Gun deems it necessary to operate on-demand passenger transport, he or she shall submit an implementation plan (hereinafter referred to as the “Implementation Plan”) to the Mayor. In such cases, the Implementation Plan shall include the matters under subparagraphs 2 through 4 of Article 4 (2).

  • ●(2) After reviewing the Implementation Plan submitted under paragraph (1), the Mayor shall, where it is deemed necessary to operate on-demand passenger transport in the relevant area, decide whether to operate it after deliberation by the Committee under Article 6.

  • ●(3) The Mayor may subsidize part of the expenses necessary for the operation of on-demand passenger transport by Gu/Gun within budgetary limits.

ADDENDUM

Ordinance No. 7460, Dec. 25, 2024

  • ●Article 1 (Enforcement date) This Ordinance shall enter into force on the date of its promulgation.

  • ●Article 2 (Amendment of other Ordinances) Part of the Busan Metropolitan City Ordinance on the Transport Committee shall be amended as follows:
    Previous Subparagraphs 9 and 10 of Article 3 moved to subparagraphs 10 and 11, respectively, and subparagraph 9 Added on as follows:
    9. Matters concerning Article 6 (1) of the Busan Metropolitan City Ordinance on the Operation of and Support for On-demand Passenger Transport.

List