Is It Due to Free Rides for the Elderly? Controversy Over Bus and Subway Fare Increase Proposal

Seoul City and Council Consider Raising Public Transport Base Fare by 200-300 Won
Some Citizens Point to Deficit Due to 'Senior Free Rides'
Proposal to Raise Free Ride Age from 65 to 70
Council to Thoroughly Review Public Opinion

Elderly people are sitting in a priority seat on the subway. The photo is not related to any specific expression in the article.
[Image source=Yonhap News]

[Asia Economy Reporter Han Seung-gon] As Seoul City and the Seoul Metropolitan Council are reportedly discussing plans to raise the basic fares for public transportation such as subways and buses by 200 to 300 won, some voices are emerging that the senior citizen free ride system itself should be adjusted. There are claims that the large-scale annual deficit amounting to several hundred billion won due to losses from this system has ultimately led to the fare increases for buses and subways.

According to the Seoul Metropolitan Council on the 24th, members of Seoul City and the Seoul Metropolitan Council are reviewing plans to raise subway and bus fares in Seoul accordingly.

Three options for the basic fare increase of subways and buses?200 won, 250 won, and 300 won?are being discussed. Based on the current basic fare for city buses, Gyeonggi Province charges 1,450 won and Seoul charges 1,200 won, and the council is reportedly considering a 250 won increase.

The problem lies in the fact that the increase in public transportation fares, which serve as the "feet" for ordinary citizens, comes at a time when household economies are strained due to the recent surge in COVID-19 cases, making the burden of increased expenses even heavier for citizens.

Citizens have expressed negative views on the fare increase for buses and other transportation. Kim, a company employee in his 30s who commutes in Seoul, said, "As someone who uses public transportation, I inevitably oppose the fare increase," adding, "The cost of fares will only get higher, which is worrying." He continued, "Also, I am trying to save money because of COVID-19, so I don't understand why they have to raise fares right now."

A bus operating at Samgakji Station in Yongsan-gu, Seoul. The photo is not related to any specific expression in the article. [Image source=Yonhap News]

Another office worker in his 40s, Park, also said, "I hope they consider various complex factors regarding fare increases that directly affect the working-class economy," and questioned, "With how hard self-employed people are struggling due to COVID these days, is it really necessary to review a fare increase now?"

Meanwhile, there are opinions that the background for the public transportation fare increase is related to the senior citizen free ride system on the subway.

Lee, a company employee in his 40s who uses Line 1 for commuting, said, "It would be good to slightly raise the age for seniors who ride free during commuting hours," emphasizing, "This is not about disrespecting the elderly, but if this is well considered, the subway deficit could be avoided." He added, "I hope they review the fare increase while considering such measures."

In fact, according to the 21st issue of the "Seoul City Budget and Finance Analysis" published by the Metropolitan Council in April 2017, the number of senior free riders and the losses from senior free rides have surged recently due to the aging trend.

The council stated that the cumulative losses from senior free rides on Seoul subways are expected to reach 14 trillion won by 2040, and they have requested cost-sharing between the central government and local governments.

Subway turnstile. The photo is not related to any specific expression in the article. [Image source=Yonhap News]

According to the council, if the current system of free rides for all seniors aged 65 and over is maintained, losses from senior free rides are expected to increase from 296.8 billion won this year to 364.4 billion won in 2020, 638.7 billion won in 2030, and 988.7 billion won in 2040.

Furthermore, cumulative free ride losses are projected to rise to 14.6605 trillion won by 2040, which will increase Seoul City's financial burden, the council forecasted.

According to Seoul City, as of 2018, losses from free riders on six urban rail lines nationwide amounted to 617.5 billion won, accounting for 58% of the total net loss (1.0619 trillion won). Amid this situation, with rapid aging, the proportion of senior free riders increased from 15.8% in 2013 to 17.9% (453 million rides) in the same year.

Given these circumstances, there are calls to raise the age for senior free rides. Kim, a company employee in his 40s, said, "In the era of 100-year lifespans, considering those aged 65 and over as seniors should change," emphasizing, "It would be better to raise the age to 70 for subway senior free rides. Aging is progressing rapidly, isn't it?" He added, "If raising the age is difficult, the burden should be reduced through detailed adjustments."

Experts share similar views. According to the "Seoul City Budget and Finance Analysis" (2017), the council stated, "To improve the accumulating losses from senior free rides, after comparing cases from the US, UK, France, and other countries, it is necessary to revise the Urban Railway Act for cost-sharing between the state and local governments," adding, "Institutional improvements such as adjusting the upper age limit for free rides, adjusting the discount rate for free rides, restricting free rides during commuting hours, and phased implementation plans are urgently needed."

Meanwhile, there are also forecasts that the process of raising bus and subway fares?including public hearings, Seoul Metropolitan Council plenary sessions, and deliberations by the Seoul Price Countermeasure Committee?may not proceed smoothly. This is because fare increases for public transportation amid the economic recession caused by COVID-19 are a sensitive issue that could worsen public opinion.

A Seoul Metropolitan Council official stated that they will thoroughly collect public opinion and review the matter.

This content was produced with the assistance of AI translation services.