Korea Expressway Corporation pilots direct contracts to lower rest area food prices

The Korea Expressway Corporation is implementing a direct contracting pilot program at eight highway rest areas across South Korea to combat rising food prices. Currently, many rest areas operate through a multi-layered system where the corporation contracts an operator, who then subcontracts individual stores. This structure results in high commission fees for vendors, averaging 33% of sales and reaching as high as 51% in some cases.

By transitioning to a direct contracting model, the corporation aims to reduce vendor commission rates to approximately 8–9%. This change is intended to lower consumer prices and improve food quality. Recent data shows significant price hikes for popular items: pork cutlet (donkatsu) prices rose by over 34% since 2020, while bibimbap and various snacks have also seen double-digit increases.

The pilot program includes existing rest areas such as Yeoju, Daecheon, Gunwi, and Jangyu, as well as new locations like Hapcheonho and Wolchulsan. The corporation will also utilize comprehensive evaluations—considering taste and price rather than just high rent bids—and implement stricter bidding rules to prevent nepotism. While the initiative aims to benefit consumers, industry experts note that existing long-term contracts and the potential for vendors to absorb savings as profit remain challenges.