EVALUATIONS AND IMPROVEMENTS OF THE KOREAN HIGHWAY ELECTRONIC TOLL SYSTEM

Abstract

In recent years, congestion pricing has gained popularity as a method for managing peak period congestion on major roads in urban areas. Especially, Intelligent Transportation Systems (ITS) technology has resulted in an electronic toll collection (ETC) system called “Hi-Pass” which is operated by the Korea Highway Corporation as a pilot program. Limited sections of highway have gained a good approval rating from motorists. In this research, the Korean highway toll system was analyzed with respect to the brief legal history of the toll road, collection method and levels. In addition, the electronic toll collection policy for foreign countries including France, Norway, and Italy are investigated. The toll system of each country is clearly differentiated with regard to the institution, regulation and the economy. After reviewing the pilot ETC program in Korea, the “Hi-Pass” system, several important factors were found. First, a more concrete marketing strategy for ETC users will be needed to encourage continued usage. Especially, frequent users and higher income users have more easily adopted the ETC system than others did. Second, in order to encourage the non-user to the ETC system, the costs of on-board units need to be reasonably low (about $50) and aggressive discounts (about 3–5% compared to 1% which are used currently) are needed.