Seoul Metropolitan Council Transportation Committee Holds Forum to Address Seoul Subway Financial Crisis

Chairman Woo Hyeong-chan of the Transportation Committee Seeks Solutions to Seoul Metro Financial Issues and Calls for Enhanced Subway Safety... Hosts 'Discussion on the Root Causes of Seoul Metro Financial Crisis and Strengthening Subway Safety Services'

[Asia Economy Reporter Jongil Park] The Seoul Metropolitan Council's Transportation Committee (Chairman Woo Hyung-chan, Democratic Party, Yangcheon 3) will hold a forum titled "Fundamental Causes of Seoul Transportation Corporation's Financial Crisis and Strengthening Subway Safety Services" at 2 p.m. on the 14th in the 2nd Conference Room of the Seoul Metropolitan Council Annex.

The forum, which will begin with an opening address by Transportation Committee Chairman Woo Hyung-chan, will be moderated by Seoul City Council member Chu Seung-woo. Following COVID-19 prevention guidelines, the event will be conducted as a no-audience online forum and broadcast live in real time to citizens via the Seoul Metropolitan Council's YouTube channel.

The presentations will be delivered by Kim Sang-chul, Chairman of the Public Network Policy Committee, and Lee Young-soo, Research Fellow at the Social Public Research Institute. Panelists include Lee Chang-seok, Director of the Seoul Metropolitan Government Urban Railroad Division; Lee Eun-gi, Director of Planning and Coordination at Seoul Transportation Corporation; Myung Soon-pil, Chairman of the Policy Advisory Committee of the Seoul Transportation Corporation Labor Union; and Shin Sung-il, Research Fellow at the Seoul Institute.

Since the inception of the Seoul subway, Seoul Transportation Corporation has grown into the largest urban railroad public enterprise operating lines 1 through 8. However, it is currently facing increasing financial difficulties due to chronic deficits.

Accordingly, the forum titled "Fundamental Causes of Seoul Transportation Corporation's Financial Crisis and Strengthening Subway Safety Services" aims to identify the root causes of the corporation's financial difficulties and seek solutions. Through this, it intends to establish a foundation for reinvestment in subway safety based on financial soundness.

Seoul Transportation Corporation is requesting national government subsidies due to deficits caused by free rides, while subway fares have been frozen for six years. Additionally, the corporation is suffering from financial problems due to a sharp decline in transportation revenue caused by the COVID-19 pandemic.

Seoul Transportation Corporation's budget first exceeded 3 trillion won in 2018, but the net loss reached 540 billion won. In 2020, when the COVID-19 pandemic broke out, the net loss exceeded 1 trillion won for the first time, reaching 1.1137 trillion won due to decreased transportation revenue, and the debt ratio reached approximately 88.2%.

Transportation Committee Chairman Woo Hyung-chan said, "This forum is significant in that it allows us to hear diverse perspectives and opinions from experts on the causes of Seoul Transportation Corporation's financial difficulties," adding, "Since the financial crisis negatively affects the strengthening of subway safety services, I hope this forum will find clues to overcome the financial crisis."

He continued, "Seoul Transportation Corporation must also do its best to lead social consensus through self-reflection and practical action, and the Seoul Metropolitan Council's Transportation Committee will do its utmost to work together to resolve subway financial and safety issues."

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