Seoul Metro's Debt Snowball and 257 Billion Won Interest Over 2 Years... "Inevitable for Aging Facility Improvements," Explanation

Seoul Metro (President Baek Ho) responded to media reports stating that interest payments alone amounted to 257 billion KRW over two and a half years due to a significant increase in debt, explaining that "citizens' taxes are being used for safety investments to improve aging subway facilities and for financial support to resolve the corporation's liquidity issues, with a portion being used for interest expenses."

They also stated that although the interest burden is increasing as debt rises due to financial deterioration, the corporation is doing its best to manage it within 130%, the Ministry of the Interior and Safety's standard for public corporation bond issuance.

The corporation's debt ratio (based on bond issuance standards) was 113% in the first half of 2024 and is estimated to be 121% by the end of this year.

Regarding reports that losses from free rides and the Climate Companion Card are burdensome to the corporation, they said, "Seoul City and the corporation will work together to ensure that national subsidies for free rides can be provided."

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