North Korea’s Cabinet has ordered Pyongyang city people’s committee to fix private bus operations and overhaul its fare system. This appears aimed at closing the gap between official state-set rates and what private buses actually charge, while tightening government control over these operations.
A Pyongyang source told Daily NK on Tuesday that “Cabinet administrative orders about private bus fare controls were sent to Pyongyang city people’s committee on Sept. 3,” adding “this directive follows up on private bus-related instructions issued to all provincial, city, and county people’s committees last April.”
According to the source, the Cabinet ordered authorities last April to survey private bus fares operating across the country, establish reasonable regional rates, and have local people’s committees manage and control them. This was designed to rein in skyrocketing private bus fares.
Private buses fill transportation void
Private buses emerged to replace North Korea’s collapsed public transportation system. They operate both within Pyongyang and on long-distance routes connecting major cities nationwide, becoming essential transportation for North Koreans.
These buses work through individuals registering vehicles under institutional names and paying institutions a portion of their earnings. Consequently, fares fluctuate constantly based on market conditions. Whenever exchange rates and fuel prices rise, private bus fares follow suit.
As authorities intensify their crackdown on fares, ticket sellers initially sell tickets at official rates but then separately collect the actual fare in cash. This intervention by the Cabinet has resulted in the problematic practice of double fare collection.
Daily NK understands that the official fare from Pyongyang to Sinuiju—roughly 225 kilometers—costs 120,000 North Korean won, but passengers actually pay over 300,000 won. The source said “sellers openly tell passengers ‘the ticket costs 120,000 won, but you actually pay 300,000 won.'”
Passengers accept the system
Despite this situation, people don’t complain much about double charging. The source explained that “even though there’s a huge gap between official and actual rates, nobody makes a fuss about it,” adding “people have accepted that paying more is worth it if buses run on time and get you there quickly.”
The source noted that “people used to wait for hours on roadsides in rain, heat, or cold for buses, but since private buses appeared, they don’t have to endure that anymore, so satisfaction remains high despite expensive fares.”
Increasing state control over private buses represents an attempt to nationalize these private operations. However, most view this possibility as unlikely.
The source said “the state essentially has no choice but to tolerate private bus businesses,” explaining “the system where institutions let individuals register vehicles and take part of the profits to meet state quotas is already established” and “ultimately, it benefits both individuals and the state.”
The source continued, “individual operation is much better for transportation convenience than state-run buses,” but added “something needs to be done about fares constantly rising due to exchange rate and fuel price changes.”
