Bus firm Kuo Kuang withholds employee salaries due to financial instability
Kuo Kuang Motor Transportation Co, a well-known bus service provider in Taiwan, is currently grappling with financial difficulties but is not officially in a financial crisis, according to the company's management. The company has faced cash flow problems, marked by delayed wage payments twice in 2025, with their cash reserves dropping to about NT$2 million (US$67,953) at one point, leading to delayed salaries and unpaid fuel costs early in the year.
Despite the reduced ridership since the pandemic—largely due to customers switching to alternative train services—the company’s revenue and expenditures have recently balanced out under new management efforts. They are still servicing a bank loan taken during the pandemic but claim they are not operating at a loss and expect to pay upcoming wages on time.
Regarding unprofitable routes, although the search results do not directly specify which routes are unprofitable, the decline in ridership since the pandemic implies some routes may be less viable, contributing to operational difficulties and cash flow stress. The company is in discussions with the Taiwan Highway Bureau to explore service improvements, which likely include addressing unprofitable routes and operational efficiency.
Separate from the financial situation, Kuo Kuang suffered a serious bus accident on July 22-23, 2025, when a semi-trailer truck lost balance and crashed head-on into a Kuo Kuang bus in New Taipei’s Wanli District. This tragic incident resulted in one death and 14 injuries. The Highway Bureau responded by forming an emergency team to coordinate rescue and investigation efforts, providing support to victims.
The company is planning to reorganize its entire system and suspend 14 unprofitable bus routes. The specifics of the reorganization plan remain undisclosed, with Jen, the general manager of Kuo Kuang, unable to comment on the details. Industry sources suggest that the unprofitable routes include expressways and rural routes. The corporation is in talks with the Highway Bureau to improve services and financial health, aiming to find solutions to address the operational challenges and cash flow issues.
The financial situation of Kuo Kuang has sparked speculation of a potential financial crisis, but the company's general manager, Jen Chi-nan, has stated that Kuo Kuang is not in a financial crisis, but its operations have been affected. This has led to the delay of last month's salary payments until Tuesday afternoon. Many former customers have opted for train travel with Taiwan High Speed Rail or Taiwan Railway Corp instead, adding to the financial strain on Kuo Kuang.
The company's financial situation has improved since the current chairman took office, with efforts made to increase profits. However, the road to recovery may be long, as the company continues to navigate through these challenging times, seeking support from the Taiwan Highway Bureau and striving to improve services for its customers.
- The financial difficulties facing Kuo Kuang Motor Transportation Co, despite improvement efforts, have led to the delay of last month's salary payments, which could be a sign of potential stress in the finance industry.
- The reorganization plan of Kuo Kuang, including the suspension of 14 unprofitable bus routes, predominantly involves expressways and rural routes—areas where the transportation industry and business operations intertwine, potentially affecting both employment and commuting situations.
