Changes to Express Bus Ticket Cancellation Fee Standards, Effective from May
Starting from May, there will be significant changes to the standards for cancellation fees for express bus tickets.
This change includes a system that differentiates fees based on weekdays, weekends, and holidays, as well as a gradual increase in fees for cancellations made after departure.
The purpose of these changes is to manage bus seats more efficiently and resolve the no-show issue.
How Will Cancellation Fees Change?
1️⃣ Introduction of Distinctions for Weekdays, Weekends, and Holidays → Different Cancellation Fees Applied Just Before Departure
Previously, the same cancellation fee was applied on all dates, but after the changes, differentiated fees will be applied based on weekdays, weekends, and holidays.
The fee rate for cancellations made before departure will be applied differently based on the time of cancellation. From Monday to Thursday (weekdays), a 10% fee will be imposed, increasing to 15% from Friday to Sunday and on public holidays. Notably, during the holidays of Seollal (Lunar New Year) and Chuseok (Korean Thanksgiving), the fee will rise to 20%.
Additionally, the maximum fee standard for cancellations made before departure has been changed. Previously, if a cancellation was made within 1 hour of departure, a 10% fee was charged, but now, a fee ranging from 10% to 20% will apply for cancellations made within 3 hours before departure. This aligns with the standards of rail transport.
As a result, higher fees will be charged for cancellations just before departure during weekends and holidays, making the reduction of no-shows due to simple change of mind after booking a primary goal.
2️⃣ Increase in Cancellation Fee After Departure → Up to 70% Increase by 2027
The current cancellation fee applied after departure is 30%. However, under the new standards, this fee will gradually rise to a maximum of 70%.
The schedule for increasing cancellation fees is as follows: 50% in 2025, 60% in 2026, and 70% in 2027.
Since express buses cannot resell empty seats after departure, it is reasonable to impose high fees for cancellations made after departure. Personally, I believe there should be no allowance for cancellations after departure.
Additionally, rail transport (KTX) also imposes a maximum fee of 70% after departure, and there are similar cases overseas where high fees are typically charged for cancellations just before or after departure. These practices can be understood as measures to minimize losses for transport companies.
Why Make These Changes? Addressing the No-show Problem is Key
1️⃣ Solving the Issue of People Who Need Seats Unable to Get Tickets
Express buses have a limited number of seats. Especially on popular long-distance routes like Seoul to Busan and Seoul to Gwangju, cancellations often occur just before departure, preventing actual passengers who need seats from securing tickets. This issue leads to inconveniences in transportation use.
Looking at the annual cancellation statistics for express buses, there are 1.75 million instances of cancellations made within 1 hour of departure, which accounts for about 25% of all cancellations. Additionally, there were 370,000 cancellations after departure.
These figures indicate that the rate of cancellations made after booking just before departure is excessively high, causing significant inconvenience to actual passengers.
2️⃣ Resolving the Issue of Abuse of Seats
Currently, some passengers reserve two seats and then cancel one after departure to enjoy extra space alone, taking advantage of the low cancellation fee applied after departure.
Looking at cases of abuse, there are situations where passengers reserve two seats and then cancel one after departure. In such cases, they end up paying only 1.3 times the fare while using both seats simultaneously.
Furthermore, there are frequent occurrences of monopolizing seats by repeatedly cancelling just before departure. In fact, over 126,000 cases of this kind of abuse have been confirmed annually.
Thus, by increasing the cancellation fee after departure to 70%, it is expected that such fraudulent use will significantly decrease.
How Does It Compare Internationally? Korea's Cancellation Fees Are Still Low
Even after the recent changes, cancellation fees in Korea are still relatively low compared to major countries abroad.
✅ Cancellation Fee Policies in Major Countries:
| Country | Cancellation Fee Rate |
| Australia (Port Stephens Coaches) | 50% if cancelled within 24 hours of departure, 100% if cancelled within 6 hours |
| United Kingdom (National Express) | No refunds depending on ticket type or cancellation only possible 24 hours prior to departure |
| United Kingdom (Airport Bus Express) | No refunds |
| Korean Rail (KTX) | Up to 70% charged for cancellation after departure |
Overseas, there are cases where cancellations after travel departure are completely prohibited or charged at 100%.
Korea is also looking for ways to gradually increase fees after travel departure to enhance effectiveness.
User Inconveniences and Solutions
Increased burden on users
If cancellation fees are increased, users will experience a financial burden. This situation could be particularly disadvantageous for workers or travelers whose schedules change frequently.
As a countermeasure, improvements to the reservation and cancellation system are necessary. The Ministry of Land intends to enhance the ticket reservation and departure notification system for greater efficiency.
It plans to expand real-time checking of available seats through mobile applications, streamline refund processes, and strengthen notification services.
Additionally, it is also considering providing connections to alternative transportation options.
Moreover, local governments are likely to encourage revisions to cancellation fees for intercity buses, leading to improvements in cancellation standards for intercity bus tickets.
Conclusion: Establishing a Culture of Fair Use is Key
The revision of express bus cancellation fees aims to enhance seat utilization and ensure fairness.
With the penalties for cancellations just before or after departure being strengthened, it is expected that the monopoly of seats and the no-show phenomenon will decrease.
While still moderate compared to overseas cases, we must consider the potential increase in burden for users.
Users should keep in mind the following important points:
First, they should make careful decisions when reserving tickets. Second, it is advisable to book in advance while considering the possibility of schedule changes. Third, understanding the new fee structures is essential.
Since express buses are a public transport means used by many, urgent policy improvements are needed for a fair reservation and cancellation culture to take root.
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