Questions/Answers

Located in the southwest of the Korean Peninsula, a large proportion (78.7%) of the area of Jeollanamdo consists of farmland, fields and forests. Because of these features, the public transit network of the province is extremely limited. Among a total of 6,768 towns, 4,156 either have no bus services (462) or so little service that the bus runs less than 10 times per day (3,694). Meanwhile, due to urbanization and the low birth rate, the region’s population has decreased from 2.50 million in 1990 to 1.89 million in 2017; in contrast, the proportion of residents over age 65 dramatically increased from 7.7% to 21.5% within the same period. Due to a lack of public services and facilities in remote areas, our rural residents travel to nearby cities or counties for medical appointments, daily shopping, errands and social activities. Yet, because of low-income levels and the aging population, most of them either cannot afford or are unable to drive and face major challenges to mobility. As mobility is a fundamental human right, the government looked for solutions to this matter. In partnership with the private sector, such as user residents and taxi companies, the province began the “10-cent Taxi Service” in 2014, with the aim of improving transportation for rural residents. This Taxi Service program offers on-demand services only for 10 cents per ride to rural residents with physical or financial challenges. The Taxi Service offers nearly free ridership thanks to funding by local governments. Launched in 2014, the service began operations in 362 towns and has expanded to 741 in 2017 with average daily ridership of 2,018. Against this backdrop, the 10-cent Taxi Service program for the vulnerable class in rural areas is highly related to SDG 11 for making cities inclusive, safe, resilient and sustainable by offering convenient and affordable access to public transit services.

The main goal of the 10-cent Taxi Service is to offer rural residents with easy access to transportation services matching the convenience of transportation in urban areas, ensuring that no one in Jeollanamdo is left out from access to public transit, which translates into greater inclusion for general public services. Due to the poor public transportation network, sometimes taxis are the only option for mobility in rural areas; however, our remote rural residents, who are mainly low-income seniors, have trouble affording taxis because of the high cost of rides. The nearly zero-fare taxi service program allows rural residents to enjoy public services, social activities and other services, which are mostly available in hub cities or counties. The initiative also strengthens the resilience of small rural communities by improving living conditions and enhancing local rural economic growth by increasing the customer base for local shops. Therefore, it can be said that the program is closely linked to SDG 11 for making cities inclusive, safe, resilient and sustainable by offering universal access to public transit services to the vulnerable class in remote areas, resulting in a better quality of life.

The 10-cent Taxi Service for the vulnerable class in rural areas belongs to the Category 1 reaching the poorest and most valuable through inclusive services and participation.The program is designed for remote rural residents, mostly the elderly, usually residing in areas with poor public transit. Although they have to travel to nearby cities or counties to get public services, social activities or medical care, most of them either cannot afford or are unable to drive, because of low-income and physical challenges. Sometimes taking a taxi is the only option, but the high cost of the fare is a major obstacle.The taxi project makes it possible for residents to make use of a door-to-door taxi service anytime and anywhere by paying only 10 cents. The service costs 10 cents to encourage residents to play a leading role as an active service user, not a mere welfare recipient. The service is an inclusive and participatory welfare system that is people-centered and deeply rooted in the needs of residents. Ultimately, it influences the province’s ability to make the SDG 11 of “Making cities inclusive, safe, resilient and sustainable” by providing easier access to safe, affordable, accessible and sustainable transportation systems for all.

The residents’ right to mobility must be secured, regardless of region or income levels. Moreover, mobility is a key function for rural communities and a fundamental element of an individual’s quality of life. The 10-cent Taxi Service project provides welfare services to rural residents, who might have physical and financial limitations when it comes to accessing public transportation. It offers a door-to-door service at an extremely low fare, just 10 cents. This makes it an effective and innovative way to give public transportation services to residents in aging and low-income farming and fishing villages. In 2017, 1,523 taxis were operated 540,000 times in 741 transport-challenged villages, totaling over 1 million rides annually. The results of a 2017 service satisfaction survey by the Gwangju Jeonnam Research Institute shows that 82.9% of respondents rated the service as either “very satisfactory” or “satisfactory.” The initiative improved the quality of life for residents by providing easier access to shopping, errands, medical appointments, and social activities, which are mostly concentrated in big cities or counties.

Public services are usually concentrated in cities and hub counties. 78.7% of Jeollanamdo consists of farmland and forests, and the residents of those areas live in settlements scattered throughout the province. Against this backdrop, remote rural areas have unique coordination barriers for offering fixed-route public transit, including great distances, inefficient land-use patterns and a shrinking user base from depopulation. Due to restricted access to public transit, remote farming and fishing towns in Jeollanamdo are seriously limited to public services. The province deeply understands that the residents’ right to mobility must be secured, regardless of region or income level. Moreover, mobility is key for functioning in a rural community and a fundamental element for an individual’s quality of life. Therefore, offering convenient transportation for easy access to public services is paramount. The nearly zero-fare taxi service offers a door-to-door service, allowing rural residents, who may experience physical and financial limitations when using public transportation, to reach public services, make medical appointments, go shopping and be engaged in social activities in the daytime or evening, seven days a week.

The 10-cent Taxi Service is a transit solution for rural areas, targeting the elderly, the disabled and expectant mothers, ensuring the basic human right to mobility. Jeollanamdo officially became a super-aged society in 2014. 44.8% of our rural residents, who are the target users of the program, are aged 65 or above. The service has dramatically improved the transit services to those seniors. Also, given that 14 out of 22 cities and counties of the province have no obstetric service, thanks to the nearly zero-fare taxi service, maternity care can be provided to women in remote areas. According to the 2017 service satisfaction survey by the Gwangju Jeonnam Research Institute, 82.9% of respondents rated the service as either “very satisfactory” or “satisfactory,” proving that the program is effective in catering to the needs of the vulnerable class in remote areas. This way, the 10-cent Taxi project allows remote rural residents to enjoy social services, healthcare, recreation, daily shopping and culture. Moreover, increasing visits among rural communities encourages regional economic activities resulting in a positive impact on the local economy.

The 10-cent Taxi Service significantly differs from existing services for three reasons. First, unlike other similar programs, the 10-cent Taxi Service is an inclusive and participatory welfare system that is people-centered and deeply rooted in the needs of the residents. The service costs 10 cents, and is not free, encouraging residents to play the role of active service users in the practice of the service, not mere welfare recipients.The second is the selection of the taxi as the means of transportation. Through public-private partnerships, privately-owned taxis could be utilized for offering public transit. Another factor that was taken into consideration was the fact that remote rural areas are largely composed of narrow winding roads inaccessible by buses. In addition, since taxis can offer door-to-door service, our target users, mostly the elderly with mobility issues, can use them without difficulty. A third factor was the cooperative partnership with residents, commercial taxi operators and local governments. Rural residents were actively engaged in the decision-making process, such as the selection of taxi operators and the method of distribution for vouchers. Because of its advantages, the initiative is highly valued by the central government of Korea and was adopted and implemented as a nationwide policy from 2018.

Other local governments at the municipal level in Korea use taxis as a form of transportation service, but with a different fare system, drawing its finances from the limited budgets of lower-level local governments. The Jeollanamdo Provincial Government adapted and upgraded the previous ways, befitting our given regional conditions. By partnering with transportation specialists in the private sector, residents, and private taxi companies, the province and sub-governments thoroughly examined similar transit systems of other regional authorities to troubleshoot possible issues to improve economic efficiency and sustainability. In doing so, we finally came up with the 10-cent Taxi Service, Korea’s first provincial level policy of such a service at a nearly zero-fare. In addition, with strong cooperation with residents and taxi operators, we continuously receive ongoing feedback that helps us promote sustainability in the project. Because of its advantages, it is highly valued by the central government of Korea and adopted as part of a Five-year Plan for the Administration of State Affairs, expanding nationwide with a national budget of KRW 11 billion or appx. USD 10 million from 2018.

In order to carry out the initiative, government budgets, human resources for administrative affairs, vehicles and drivers are all necessary. To fund the service, local governments in Jeollanamdo share the burden from their own budgets. For human resources for administrative affairs, each government allocates 1 to 3 persons dedicated to operating the service. For material resources, the 10-cent Taxi program works with private taxi companies, which already possess an adequate number of vehicles and drivers. Therefore, its initial investment is significantly smaller than that of establishing fixed bus routes; moreover, the service can be available immediately. It also offers a considerable economic impact with lower expenses compared to expanding existing bus services. Regarding budget expenditures per capita in 2017, the 10-cent Taxi Service required KRW 4,144 or appx. USD 3.81, which is 35.7% lower than that of the operating loss subsidies for fixed bus routes in remote rural areas in Jeollanamdo (KRW 5,626 or appx. USD 5.17). Thanks to its economic and social advantages, it has been adopted to the Five-year Plan for the Administration of State Affairs and is being expanded nationwide with a national budget of KRW 11 billion or appx. USD 10 million starting in this year of 2018.

Yes

The 10-cent Taxi Service policy was adopted to the Five-Year Plan for the Administration of State Affairs in 2017 and is being expanded throughout 82 counties nationwide in 2018, injecting a national budget of KRW 11 billion or appx. USD 10 million. In general, the transportation infrastructure tends to be expanded in densely populated areas due to economic efficiency; therefore, remote rural areas without public transit service or under-served areas face the same issue. Since the 10-cent Taxi Service cooperates with private taxi companies, which own an adequate number of vehicles and drivers, it offers a considerable economic impact with lower expenses compared to expanding existing bus routes. Regarding budget expenditures per capita in 2017, the 10-cent Taxi program spent KRW 4,144 or appx. USD3.81 per person, which is 35.7% lower than that of the operating loss subsidies for fixed bus routes in remote rural areas in Jeollanamdo (KRW 5,626 or appx. USD 5.17 per person). Consequently, initial investment is low, and service can be available immediately. Because of such advantages, the initiative is highly valued by the central government of Korea and was adopted as a nationwide policy.

From social aspect, due to Korea’s rapid urbanization and the mass migration to the cities in the 1970s, the population of Jeollanamdo with its many farming and fishing villages sharply decreased from 2.50 million in 1990 to 1.89 million in 2017. Meanwhile, those aged 65 and older have dramatically increased from 7.7% (191,000) to 21.5% (408,000) within the same period because of the outward migration of the younger age-bracket and the low birth rate caused by population imbalance. Consequently, the demographic shifts increased the demands on healthcare and geriatric care. Above all, seniors with physical challenges and the lack of medical infrastructure in remote rural areas are likely to continue to increase the demand for the public transportation services; therefore, supplementary transportation services will become more necessary in the future. From an economic aspect, the service enables rural residents to sell their produce in local markets as well as increase the customer base for local shops, enhancing local rural economic growth through easier access. It also helps local taxi operators, who are experiencing financial difficulties due to a shrinking customer base. From an environmental aspect, it reduces air pollution and unnecessary environmental impact. Since LNG vehicles need higher up-front costs, public transit agencies in rural areas largely rely on diesel-powered buses that produce a large amount of greenhouse gas emissions. On top of that, bus companies are mandated to run buses on fixed-routes and schedules, sometimes carrying very few passengers in low-density, rural areas. Since mass transit vehicles use roughly the same amount of energy whether full of passengers or empty, the 10-cent Taxi Service contributes towards protecting the environment. In conclusion, given the increasing demand for the service and the positive impact on the environment and local economy, the project, which is demand-centered and eco-friendly,is bound to be sustainable.

First, the sustainability of the 10-cent Taxi Service can be found in the underdeveloped socio-economic condition of rural areas. The level of livelihood and development in Jeollanamdo is much lower than that of other provinces in Korea. 16 out its total 22 cities and counties in Jeollanamdo are designated as underdeveloped farming and fishing regions by national standards. For this reason, most of Jeollanamdo residents are still struggling to get access to key services such as education, healthcare and employment, resulting in an outflow of young residents, which perpetuates the vicious cycle of draining human capital from rural areas and deepening the population imbalance. It threatens social stability and the sustainability of rural communities. Since urbanization is increasingly recognized not only as a local issue, but as a global one, it will become more prevalent in developing countries. Therefore, urbanizing countries will inevitably face the same issue and the 10-cent Taxi Service will become a more effective alternative. Second, Jeollanamdo Provincial Government made a strong commitment towards eradicating the disparities in access to public services for all Jeollanamdo residents. To improve the quality of life of the vulnerable class by providing practical social assistance, the province prepares and implements “policies for vulnerable residents” every year, such as the “10-cent Taxi” program. We began with 25 programs in 2016 and will run 70 programs in 2018. This helps residents in a practical way and has resulted in very positive feedback from users. In conclusion, the increasing need for the service and the strong willingness of Jeollanamdo to promote the project will create favorable conditions for its sustainability.

Yes

In 2017, the Gwangju Jeonnam Research Institute, a renowned research center specializing in local issues, carried out a customer satisfaction survey and conducted research to obtain a better understanding of the 10-cent Taxi Service. The survey asked for feedback from 2,697 users, 12.5% of the total customers, using a paper-based, self-enumeration method. The research paper titled “The 10-cent Taxi Effect and its Development Strategy” was published in December 2017. The service also won the second place for Innovation in Society in the Best Administrative Service Awards organized by the Ministry of Interior and Safety of Korea (MOIS) in October 2017. On top of that, thanks to its positive social and economic impacts, the central government is rolling out the affordable transportation program in 82 counties nationwide.

According to the 2017 satisfaction survey by the Gwangju Jeonnam Research Institute, 82.9% of respondents rated the service as “very satisfactory” or “satisfactory.” When asked about changes to their livelihood, 66.8% responded with “I go out more often,” 15.1% responded with “I enjoy more leisure activities,” and 12.7% said,“I enjoy more social gatherings.” The result indicated that the 10-cent Taxi Service contributed towards facilitating communication and exchanges among rural residents as well as towards fostering economic activity in the region. When asked about destinations, 45.9% of respondents answered “hospital,” 26.8% “market,” and 11.2% replied with “public office,” showing that the service improves conveniences in residents’ daily lives. In addition, the paper shows that increased communication and exchanges among residents helped to create a safety network for them.

The 2017 customer satisfaction survey’s indicators consisted mainly of: overall satisfaction, service use frequency and patterns, convenience, service quality and customer care. The Best Administrative Service Co-Development Contest by the MOIS evaluated the 10-cent Taxi Service across six categories, which are very similar to those of the UNPSA: 1) the seriousness of the existing challenge, 2) the main agents of social change, 3) innovation, 4) effectiveness, 5) sustainability of the service, and 6) transferability.

Citizen engagement in policy development and implementation is a key to policy success and a critical element of an open and inclusive society. In that regard, the 10-cent Taxi Service is generated based on residents’ passionate engagement in directly identifying needs and developing policy solutions. In the early stages of policy development, the provincial and 22 municipal governments first designed a zero-fare taxi service and test-operated the policy for two months, in a response to the soaring population of senior residents and the changing circumstances of rural communities. However, many were concerned that completely fare-free assistance can be a stigma that can be associated with the use of the service, negatively affecting recipients’ self-esteem. To resolve this issue, Jeollanamdo established a resident committee for service operation, which consisted of 5 members in each town, to involve them in the policy decision-making process. After listening to many opinions and feedback, it was finally decided to charge KRW 100 (10 cents) per ride to preserve the residents’ self-esteem and encourage their engagement. The committees themselves selected taxi businesses to use and decide ways to distribute vouchers. They freely voiced their concerns and opinions on participation in the deliberation process as service provider as well as service seeker. The governments, residents and taxi businesses regularly held meetings for quality improvements for better service and more effective interaction with stakeholders. Also, a research institute annually carried out surveys on customer satisfaction and shared best practices and feedback with all the stakeholders.

Average life expectancy is now approaching 100 years. Such increases will result in a greater need for social welfare systems. Many parts of the world are, however, still struggling from limited access to even basic services such as healthcare, public transportation and communications. Welfare benefits should be provided to all residents on an equal basis, regardless of age or region. As policymakers, central and local governments should continuously develop and implement effective policies tailored for specific age groups and regions to make sure that no one is left behind. We learned from trial and error of similar systems by other authorities and found that resident engagement is a key aspect for policy success. We shared information, involved residents as partners in the decision-making process and took this engagement into account when reaching a final decision. We believe that resident engagement must be undertaken at all stages of policy development and implementation. To make the initiative sustainable, we will further develop and upgrade the resident engagement framework for deeper engagement with residents on a wide variety of issues for provincial policy programs.