Gangnam-gu Provides 140 Million Won Support for Operating Deficit of Village Buses

Seoul City and Autonomous Districts to Match 50:50 for 15% of Operating Revenue Deficits of 7 Companies... Prompt Support from July Deficit

Gangnam-gu (District Mayor Jo Seongmyeong) will provide approximately 140 million KRW from the district budget in the second half of this year to village bus operators experiencing operating deficits, aiming to normalize village bus operations.

There are a total of 7 companies operating village buses in Gangnam-gu, covering 10 routes with 87 buses. Compared to 2019, village bus ridership decreased by 27.2% in 2020, 29.8% in 2021, and 30.6% in 2022, intensifying financial difficulties after COVID-19.

Moreover, as village bus drivers rapidly leave for delivery service companies and others, bus operation rates have declined and intervals between buses have been delayed, increasing inconvenience for residents.

Until now, Seoul City has supported 85% of the deficit within a daily limit of 230,000 KRW when village bus transportation revenue falls short of the financial support standard amount (457,040 KRW per bus per day).

However, due to rising bus fuel costs, decreased ridership, and driver departures, worsening village bus operating conditions, in April the city and autonomous districts agreed to share the remaining 15% of the deficit equally (7.5% each) to provide additional financial support.

As part of the 8th term public pledge projects to promote village bus financial support, the district quickly responded to the city’s support plan by enacting ordinances and preparing supplementary budgets in June.

Accordingly, the district will provide approximately 140 million KRW from the district budget to cover 7.5% of the financial support calculation amount for deficits from July to December this year for the 7 local companies.

Through this additional support, the number of bus drivers will increase from 1.79 to 2.43 per bus, and bus intervals will be restored to pre-COVID-19 levels.

Jo Seongmyeong, Mayor of Gangnam-gu, said, “We hope this support will help resolve the financial difficulties and normalize operations of village buses facing challenges,” adding, “We will continue to carefully monitor to ensure stable village bus operations and do our best to prevent any inconvenience in public transportation usage.”

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