Incheon Transit Corporation Unable to Cover Even Labor Costs with Fare Revenue... Incheon City Provides 113.1 Billion Won Subsidy

City Councilor Kim Jong-bae Calls for "Management Innovation Needed" in Administrative Audit

It has been revealed that the increase in labor costs at Incheon Transit Corporation has been unable to cover the rise in passenger transportation fares, resulting in continued deficits.

According to the Incheon City Council on the 20th, Assemblyman Kim Jong-bae (People Power Party, Michuhol-gu District 4) pointed out during the administrative audit of Incheon Transit Corporation at the 291st regular session on the 17th, "Reviewing the 2022 settlement data of the Transit Corporation, fares increased by 18.5 billion KRW to 131 billion KRW compared to the previous year, while labor costs rose by 23.8 billion KRW to 196.3 billion KRW, leading to a net loss of 173.6 billion KRW."

Despite a 16.53% increase in fares for Incheon Subway Lines 1 and 2 compared to the previous year, the rise in labor costs for the Transit Corporation employees is still unmanageable. As a result, Incheon City's subsidies increased by 46.3 billion KRW from 66.8 billion KRW in 2021 to 113.1 billion KRW last year.

Assemblyman Kim stated, "Although the unpaid fare revenue loss for Incheon Subway is about 25.4 billion KRW annually, the city's support has risen to 113.1 billion KRW each year, indicating a high dependency that necessitates management innovation," and demanded that Incheon Transit Corporation prepare measures for management improvement.

Kim Jong-bae, Incheon City Council Member [Photo by Incheon City Council]

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