Six Urban Railway Operators, Including Busan Transportation Corporation, Hold Policy Forum on Improving the Urban Railway Free Fare System

"7 Trillion Won in Losses, National Responsibility Needed for Transportation Welfare"
Bipartisan Lawmakers and Experts Speak with One Voice

On September 10, six urban railway operators nationwide (Busan, Seoul, Daegu, Incheon, Gwangju, and Daejeon), along with the Korean Society of Transportation, held a 'Policy Forum on Improving the Urban Railway Free Fare System for Sustainable Transportation Welfare Services in a Super-Aged Society' at the National Assembly Library's small conference room.

Six urban railway operators nationwide, including Busan Transportation Corporation, are holding a "Policy Forum on the Improvement of the Urban Railway Free Fare System." Photo by Busan Transportation Corporation

The forum was attended by National Assembly Speaker Woo Wonshik, Land, Infrastructure and Transport Committee Chairman Maeng Sungkyu, 15 lawmakers from both the ruling and opposition parties, government officials, academic experts, civic groups, and representatives from the operating agencies, who gathered to seek solutions for losses incurred from free rides as Korea enters a super-aged society.

The urban railway free ride system, introduced in 1984, is a representative welfare policy that guarantees the right to mobility for senior citizens aged 65 and older, as well as for transportation-vulnerable groups. However, the rapid increase in the elderly population is intensifying financial pressure.

In fact, the proportion of the population aged 65 and older surged from 4.1% in 1984 to 20.3% in 2025, and free ride beneficiaries now account for 18% of all urban railway passengers.

As of 2024, the annual loss from free rides for the six operators nationwide amounts to 722.8 billion won, representing 58% of their net loss for the year. In 2025, it is estimated that out of a total of 2.257 billion passengers, approximately 505 million will ride for free.

Jinhee Kim, a professor in the Department of Urban Engineering at Yonsei University, who delivered the keynote presentation, emphasized, "The issue of losses from free rides should be addressed by the central government serving as the control tower for transportation welfare, taking responsibility for calculating the nationwide cost of public service and establishing compensation contracts." She stressed the need for phased amendments to relevant laws.

During the ensuing discussion, participants agreed that losses from free rides should be defined not as 'corporate deficits' but as a 'public responsibility in terms of national welfare,' and that it is urgent to establish a legal basis for government funding support.

Byungjin Lee, President of Busan Transportation Corporation, stated, "Since 2004, several bills for government support of losses from free rides have been proposed, but none have passed the National Assembly. In the 22nd National Assembly, it is essential to establish a basis for government compensation so that not only transportation-vulnerable groups but all citizens can safely use urban railways, opening the future of sustainable transportation welfare."

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