Advance Payment of Village Bus Subsidies... Mapo-gu Takes Decisive Step for Stable Bus Operations

Switching from "post-payment" to "advance quarterly payment and settlement"
Securing both liquidity for bus operators and stability in village bus operations

Mapo-gu (District Mayor Park Kangsoo) has completely overhauled its financial subsidy payment system for village bus operators with poor financial conditions, shifting from "monthly payments" to "advance quarterly payments followed by settlement." This aims to ease the burden on operators and support stable route operations.

Currently, under the Ordinance on Financial Support for Village Buses in Mapo-gu, Seoul, Mapo-gu provides financial support to operators running deficit routes whose revenues do not meet the standard amount.

Within a limit of 230,000 won per bus, the Seoul Metropolitan Government covers 92.5% of the deficit, and since November 2023, Mapo-gu has been providing an additional 7.5% to cover the remaining amount.

However, under the previous system, Seoul calculated and notified the subsidy amount monthly based on performance, and then the district office paid the operators afterward. This process typically took one to two months from calculation to payment. For example, the district office would only receive final confirmation from Seoul for the January subsidy amount in March, and then pay the operators.

Because the subsidies were settled late, this did not directly help operators secure liquidity, which in turn increased their management burden.

To address this, starting from the second quarter of 2025, Mapo-gu will pay operators in advance an amount equivalent to three months of the average monthly subsidy based on the previous year's performance. After the quarter ends, the actual amount will be settled based on Seoul's calculations, with any excess or shortfall reflected in the next quarter's payment.

With this change, operators are expected to secure a more stable cash flow and improve their management conditions, which in turn is anticipated to enhance the operational stability of village buses used by residents.

Park Kangsoo, Mayor of Mapo-gu, stated, "A small change, such as advancing the payment timing and adjusting the method, can provide much-needed relief for operators and guarantee stable bus service for residents. We will continue to listen to inconveniences and turn them into positive changes."

Currently, there are 16 routes and 104 village buses operating in Mapo-gu. As of 2024, Mapo-gu's share of financial support for deficit transportation operators amounted to approximately 220 million won.

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