The routes of coastal passenger ships are important in the light of both economic and social view point. Islands around the Korean peninsular can be actually dominated by linking them with land by the ships. The service quality of the route is not high enough to satisfy habitants in the islands. The income of the service-users is increasing so that they expect better service in terms of ship's speed and cabin. The reality is not, however, good to motivate ship-owners to replace aged ships with new and large ones. The situation is caused by low passenger-fare and inefficient management. Therefore the fare should be raised and the fare system should be innovated. And the number of passenger ship companies should be reduced from 42 to 20 by merger and acquisition.

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