The most frequently searched-for policy in the freight transportation industry is back. The Safe Freight Rate Systemhas been reinstated for a three-year period starting January 1 of this year.
However, most news articles only cover the fact that it has been “reintroduced.” What transport companies are really curious about is something else entirely.
“Does this apply to our company?” “How is it different from the previous system?” “What happens if a shipper doesn’t comply?”
This article answers these three questions from the perspective of freight carriers and concludes by explaining why this system exists in the first place—and how it relates to carriers’ safety management.
Here is a brief summary of the timeline:
The Safe Freight Rate System is a program under which the Ministry of Land, Infrastructure, and Transport annually sets and publishes the statutory minimum freight ratespaid to truck drivers and transport companies. It can be easily understood as the freight transportation equivalent of the minimum wage.
Freight rates are announced in two tiers.
This system is designed to prevent freight rates from being progressively reduced at each stage in the multi-tiered structure—from shipper → carrier → truck owner—by protecting both parties.
Let’s start by clarifying the most common point of confusion. The Safe Freight Rate System does not apply to all cargo.
It applies to only two categories of goods.
| Applicable Items | Applicable Transportation |
|---|---|
| Import/Export Containers | Port ↔ Inland Container Transport |
| Cement | Cement Transportation (BCT, etc.) |
In other words, the transportation of general cargo, express freight, steel, hazardous materials, and other items is not subject to this system. The first thing to check is whether your company’s cargo falls under one of these two categories.
However, even if your cargo is not covered, it is still worth being aware of this system. This is because the Safe Freight Rate System serves as a benchmark indicating the direction of freight rates and safety regulations, and discussions regarding the expansion of covered items are ongoing.
This reintroduction is not simply a revival of the 2020–2022 system as-is. It includes measures to address issues that emerged during the program’s operation.
Penalties for shippers who pay freight rates below the Safe Freight Rate have been strengthened. Violations will result in a fine of up to 5 million won. From the shipper’s perspective, compliance with the Safe Freight Rate System has become an essential checkpoint in logistics contracts.
An obligation has been introduced requiring transport companies to payfreight charges in advanceto vehicle owners and drivers. This measure is intended to prevent the practice of vehicle owners bearing the burden due to delayed freight payments. For transport companies, managing cash flowhas become a practical challenge.
Freight rates for short-distance routes—which were previously criticized as unreasonable under the existing system—have been adjusted to reflect actual costs. Transport operators specializing in short-distance routes should review the officially published rate schedule.
Administrative forms have been introduced to reduce disputes surrounding ancillary charges (such as waiting fees and manual labor costs) in addition to freight rates. Verifying the form standards at the contract stage is advisable for dispute prevention.
Practical Checklist — For Transport Companies Subject to These Changes: ① Verify whether your cargo items are subject to these changes (import/export containers, cement) ② Verify that the contracted freight rate with the shipper is at least equal to the Safe Transportation Freight Rate ③ Verify that the freight rates paid to truck owners and drivers are at least equal to the Safe Consignment Freight Rate + Review the advance payment system ④ Organize ancillary charges according to the administrative form standards ⑤ Establish a system to verify the officially announced freight rates, which are updated annually (freight rates change every year)
Here, we need to revisit the name of the system. Why is it called the “Safe” Freight Rate Systemrather than the “Minimum” Freight Rate System?
The legislative intent provides the answer. If fares are too low, drivers will drive longer (overtime), carry heavier loads (overloading), and drive faster (speeding) to make ends meet. Such reckless driving leads to accidents. The Safe Fare System is designed to break this chain by guaranteeing a minimum fare.
In other words, the fare is a means to an end, and the end is safety.
However, there is one thing transportation companies must not overlook: just because freight rates are guaranteed does not mean safety automatically follows.
The system merely eliminates the “economic causes” of reckless driving. The remaining half— the actual management of risks during operation—still falls to the transportation companies.
The path to addressing that remaining half is clear: rather than relying on individual drivers’ attention, risksmust be detected in real time and managed through data.
AI-Matic’s AI Safe Driving Solutionis an integrated system in which the AI device Roadscope, installed in vehicles, detects and alerts drivers to risks, while the aid control platform accumulates and analyzes that data by driver and by vehicle. It addresses the very risks targeted by the Safe Freight Rate System, category by category.
An AI camera monitors the driver’s condition in real time while driving. As soon as risky behaviors such as drowsy driving, failure to monitor the road ahead, or cell phone use are detected, a voice warningis issued to help correct the behavior immediately. In the freight transportation industry, where long-distance and nighttime driving are common, drowsiness is a matter of split seconds; therefore, intervention in the moment—rather than post-incident review—is key.
Continuous drivingisalsomanaged through data. Since the system tracks each driver’s extended driving periods without breaks, it provides an objective basis for dispatch and break-time management. If guaranteed freight rates have reduced the economic pressure to drive excessively, this data becomes a practical tool for actually reducing overwork.
Based on vehicle data, 11 major risky driving behaviors—including speeding, prolonged speeding, rapid acceleration, rapid deceleration, and sudden lane changes—are automatically detected and recorded. But it doesn’t end there; the process continues in two additional steps.
Roadscope 10for trucks integrates safety and regulatory compliance into a single solution tailored to the realities of freight carriers.
Safety devices and DTGs—which freight carriers previously had to install and manage separately—are consolidated into a single device, and the monthly task of submitting driving records is automated. The obligations for submitting truck driving records and inspection procedures are detailed in our “Monthly Submission Obligations for Large Freight Truck DTGs” and “Company Inspection Guide.”
If an accident does occur, the data accumulated over time serves as a shield for your company.
In a pilot project conducted by the Korea Transportation Safety Authority (KOTSA) for monitoring hazardous material transport vehicles, it was confirmed that using AI to directly detect accidents reduced the time required for accident detection by 92.5%(from 159 seconds to 12 seconds) and decreased false positives, significantly reducing the burden on control centers.
Freight rates are now legally guaranteed. It’s time to manage safety with data.
👉Learn more about AI-Matic’s AI Safe Driving Solution
We’ll assess whether risky driving behaviors—such as overwork, speeding, and drowsiness—are being detected and managed in real time.
A. No. The reintroduced Safe Freight Rate System applies only to two categories: import/export containers and cement. The transportation of other items—such as general cargo, parcel deliveries, and steel—is not covered by the system. However, discussions regarding expanding the scope of covered items are ongoing, so even transport companies not currently subject to the system should stay informed about its future direction.
A. It will be implemented for a limited period of three years, from January 1, 2026, to December 31, 2028. Like during its initial implementation from 2020 to 2022, the system is structured as a sunset provision; whether it will be extended or revised thereafter is expected to be determined based on an evaluation of its performance.
A. Shippers who pay less than the safe freight rate will be subject to **administrative fines (up to 5 million won)**. A major difference from the previous system is that the obligations and penalties for shippers have been strengthened in this reintroduction. From the carrier’s perspective, they must verify that the contracted freight rate is at least equal to the officially announced rate and, if it falls short, be prepared to respond with supporting evidence.
A. The payer and the recipient are different. The Safe Transportation Fareis the minimum amount a shipper must pay to a transportation company, while the Safe Consignment Fareis the minimum amount a transportation company must pay to a vehicle owner or driver. It serves as a dual safeguard to prevent fare reductions at both levels of a multi-tiered structure. Since transportation companies are both recipients and payers, they must verify both fares.
A. No. Fare payment and safety management are separate obligations. If an accident occurs, compliance with safety management obligations—such as whetherthe company monitored the driver’s risky behavior or provided training and corrective measures— is assessed separately. The Safe Freight Rate System is designed to reduce the economic incentives for reckless driving, but detecting and managing risks during operation remains the responsibility of the transportation company.
A. There are four major changes: stricter penalties for shippers(fines of up to 5 million won), a mandatory requirement for transportation companies to pay freight rates in advance, the adjustment of short-distance freight rates to reflect actual costs, and the introduction of administrative forms for supplementary provisions. Overall, the system has been revised to enhance its effectiveness and transparency.
This article was prepared based on the Ministry of Land, Infrastructure and Transport’s “Notice on Safe Freight Rates for Freight Vehicles Applicable in 2026” and publicly available guidance materials. Since specific published freight rates and application requirements are updated annually, please ensure that your contract and payment procedures are based on the latest notice and verified by experts.