KOTI - Korea Transport institute

The road freight transport market mainly consists of small and medium-sized businesses. It has been chronical instability because of deep conflicts of interest among market members. Over the past 10 years, there have been market crises for several times. Cooperatives as an alternative to market stabilization have been pointed out. In this situation, Cooperatives Act entered into force last December, and hence it became possible to establish cooperatives in the road freight transport market. This study, therefore, aims to develop policies to promote establishment of cooperatives in the road freight transport market. This study is carried out in accordance with the following four steps. Firstly, contents of Cooperatives Act are investigated and its implications are derived. In order to explore the possibility of introducing cooperatives in the market, then, the establishing conditions are analyzed through a series of process - examination of structural problems of the market, analysis of expected forms of cooperatives, set-up of activation elements, and evaluation of market conditions according to elements. Next, related cases in developed countries are investigated to derive implications. Finally, detailed policies are presented by categories - revision of Trucking Industry Act, development of promotion programs, and institutional support measures