"Compensate Urban Railway Free Ride Costs with National Funds"... Six Urban Railway Operators Submit Joint Proposal

Urban railway operating organizations nationwide have called for the government to compensate for losses from free rides in order to alleviate the growing financial burden in an aging society.

Officials from urban railway operating organizations nationwide are having a meeting with the Chairman of the Land, Infrastructure and Transport Committee and taking a commemorative photo. Photo by Busan Transportation Corporation

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On the afternoon of May 7, six urban railway operators?Seoul, Busan, Daegu, Incheon, Gwangju, and Daejeon?held a joint labor-management council meeting and delivered a joint proposal to the National Assembly and the government, requesting national-level financial support for public service losses caused by legally mandated free rides.

The urban railway free ride system, introduced in 1984, is a welfare policy designed to guarantee the right to mobility for vulnerable groups such as the elderly, people with disabilities, and national merit recipients. However, the resulting financial losses have been entirely borne by the urban railway operators.

The labor and management representatives emphasized, "Since free rides are a welfare policy implemented by the government, the government should also be responsible for the losses," adding, "National funding to compensate for public service costs is a key issue for the sustainability of urban railways and the realization of transportation welfare."

In particular, in Busan, which has entered a super-aged society, annual losses from free rides for the elderly amount to several tens of billions of won and continue to increase. In contrast, Korea Railroad Corporation receives compensation from the government for losses from free transportation under the Framework Act on the Development of the Railroad Industry, but urban railways have been excluded from compensation, raising concerns about fairness.

Accordingly, the presidents and labor union leaders of the six operators adopted a joint proposal focusing on institutionalizing national funding to compensate for public service costs arising from free rides and reflecting a loss compensation budget of 365 billion won in the 2026 fiscal year budget plan. They agreed to work together in response.

The joint proposal was prepared based on the amendments to the Urban Railway Act, the Welfare of Senior Citizens Act, and the Welfare of Persons with Disabilities Act, which were submitted after the opening of the 22nd National Assembly, and was delivered to the Chairman of the Land, Infrastructure and Transport Committee, political parties, and relevant ministries.

A representative from Busan Transportation Corporation stated, "Institutional and financial support is essential for urban railways to fully function as public transportation," adding, "We will continue to pursue follow-up actions such as legislative and budgetary measures."

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