Number of project beneficiaries greatly expanded from 160,000 to 300,000 → 8 additional project areas added
Additional mileage payment expanded from ages 19-34 to all ages → Strengthened linked services
[Asia Economy Reporter Kangwook Cho] The number of eligible participants for the ‘Metropolitan Discounted Transportation Card Project,’ which is being promoted to reduce national transportation costs and revitalize public transportation, will significantly increase, and mileage benefits will also be expanded.
The Metropolitan Transportation Committee of the Ministry of Land, Infrastructure and Transport announced on the 22nd that it will expand the scale of the Metropolitan Discounted Transportation Card (hereafter Discounted Card) project this year and promote system improvements to enhance policy effectiveness.
First, the number of Discounted Card users, which was about 160,000 in the first year of the project last year, will increase significantly to over 300,000. In addition, eight new regions including Jecheon in Chungbuk, Suncheon, Muan, and Sinan in Jeonnam, Gimcheon and Yeongcheon in Gyeongbuk, and Jeju and Seogwipo in Jeju have newly joined the project, allowing residents in these areas to benefit from transportation cost savings through the Discounted Card.
Accordingly, the total project area has expanded from the previous 14 metropolitan cities and provinces covering 128 cities, counties, and districts to 16 metropolitan cities and provinces covering 136 cities, counties, and districts, enabling 83% of the total population to apply. The Ministry of Land, Infrastructure and Transport plans to continuously expand the project area, focusing on non-participating regions within metropolitan areas in the future.
Starting from the 1st of next month, a new system will be introduced to provide additional mileage on top of the basic mileage currently paid based on walking, bicycle, and other usage distances. Accordingly, if public transportation is boarded by 6:30 a.m. (based on the first boarding time in case of transfers), an early bird additional mileage (50% of the basic mileage) will be granted. This is expected to reduce the transportation cost burden for public transportation users commuting or attending school early in the morning, while also helping to disperse public transportation demand and encourage social distancing. After a six-month pilot period, the effect will be analyzed to decide whether to continue the program.
Furthermore, the age range eligible for additional mileage payments for basic livelihood security recipients and low-income groups will be expanded from the current youth group aged 19 to 34 to all ages. This is expected to more effectively reduce the transportation cost burden for basic livelihood security recipients and low-income groups who heavily depend on public transportation.
Additionally, the Metropolitan Transportation Committee conducted a public opinion survey for a name change and decided to change the project name from ‘Metropolitan Discounted Transportation Card’ to ‘Discounted Transportation Card’ starting from the 1st of next month by removing ‘Metropolitan.’ This change addresses concerns that the previous name was too long and caused misunderstandings that the card was only for metropolitan commuters.
In the second half of this year, expansion of linked services such as mobile pay and cross-marketing will be promoted. Accordingly, mobile pay services that can be used with only a smartphone without a physical card are expected to expand. The mobile Zero Pay Discounted Transportation Card, which was only available for accumulation in the metropolitan and Daejeon-Sejong areas, added Jeju as a usable area from last month and plans to continue expanding. In addition, consultations with related organizations are underway to introduce various mobile pay services within the year.
Moreover, plans are underway to collaborate with shared mobility companies to promote campaigns and provide linked benefits for fostering a proper shared mobility culture. Various cross-marketing initiatives will also be conducted with organizations related to public transportation use, environmental protection, and health promotion, which align with the project’s purpose.
The Metropolitan Discounted Transportation Card is a transportation card that provides mileage proportional to the distance traveled by walking or bicycle when using public transportation (20%) and offers additional discounts from card companies (10%), enabling up to 30% savings on public transportation costs. In the first year of the project last year, about 160,000 people used the card, saving an average of 12,862 KRW per month (8,420 KRW in mileage and 4,442 KRW in card discounts), achieving about a 20.2% reduction in public transportation costs.
Jang Gujung, Director of the Metropolitan Transportation Fare Division at the Ministry of Land, Infrastructure and Transport’s Metropolitan Transportation Committee, said, “This is a low-cost, high-efficiency project where relatively small costs directly benefit those who really need it,” adding, “We will strive to ensure the system is stably established and can be sustained.”
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