South Korea is implementing measures to reduce transportation costs for its citizens during the upcoming Chuseok holiday from September 24th to 27th. This includes waiving tolls on all expressways nationwide for the four-day period. Additionally, fuel prices at 226 state-funded gas stations operated by the Korea Expressway Corporation will be cut by 100 won per liter, setting average prices during Chuseok at 1,744 won for gasoline and 1,734 won for diesel. These reductions are based on prices from September 17th and exclude privately financed expressways.
These holiday incentives are part of broader government efforts to mitigate high fuel costs. Since 2017, the government has waived expressway tolls 14 times during Lunar New Year and Chuseok holidays, totaling approximately 1.045 trillion won ($752 million) in waived tolls for over 403 million vehicles. The Ministry of Land, Infrastructure and Transport announced these measures, stating they were finalized at the 41st Cabinet meeting.
Separately, the government has been spending significantly to cap petroleum product prices. The budget allocated to compensate refiners for losses under this price cap system has reached 5.65 trillion won ($4.07 billion). While the cap system initially aimed to curb inflation, experts warn that prolonged controls could outweigh the benefits, weaken consumption-curbing effects, and risk damaging the market's price-setting function, especially as winter approaches and demand for heating increases. Despite these concerns, the government maintains the cap, believing the fiscal cost is justified to hold down inflation, which it estimates would have been 0.5 percentage points higher last month without the measure.
Special traffic management measures will also be in place during the Chuseok holiday to handle increased demand at rest areas and gas stations. This includes separating traffic flows, providing real-time congestion information, and deploying additional personnel. The government plans to ensure smooth traffic and fuel supplies, working with related agencies to manage demand near interchanges and other locations.
