New Year Nationwide Taxi, Bus, and Subway Fare Increases One After Another

Seoul Taxi Base Fare 4,800 Won from February 1
Subway, City Bus, and Village Bus Fares Increase by 300 Won from April
Gyeonggi-do to Raise Taxi Base Fare Within the Year
Daegu and Ulsan Taxi Base Fare 4,000 Won This Month

On the 29th, when Seoul announced plans to raise public transportation fares by 300 won each for the subway, city buses, and village buses by the end of April next year, citizens were passing through the turnstiles at City Hall Station on Seoul Subway Line 1. The city decided to increase fares, judging that it could no longer endure the severe accumulated deficits of the subway and buses, especially since the government will not provide budget support for losses from free rides for the elderly next year. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Han Jinju] Taxi, bus, and subway fares nationwide will rise one after another in the new year.

According to Yonhap News on the 1st, most of the 17 cities and provinces across the country have decided or are seriously considering raising public transportation fares such as taxis, subways, and buses.

Seoul will raise the basic taxi fare from 3,800 won to 4,800 won starting at 4 a.m. on the 1st of next month. Subway, city bus, and village bus fares are also planned to be increased by 300 won each as early as April.

Gyeonggi Province is pushing for a taxi fare increase this year. The extent of the increase will be decided based on the ongoing cost estimation service, but it is highly likely to be at a level comparable to Seoul.

Daegu and Ulsan also plan to raise the basic taxi fare from 3,300 won to 4,000 won this month. Daejeon plans to increase the basic taxi fare of 3,300 won during the first half of the year.

Gyeongnam, Gyeongbuk, Jeonnam, Jeonbuk, Chungbuk, and Jeju have not finalized taxi fare increase plans but are currently conducting studies for fare increases or will review whether to raise fares within this year.

Incheon is reviewing fare increases for city buses and wide-area buses but has not yet decided on whether or how much to raise fares.

Bus fares, which have been frozen for 10 years in Busan and also in Gyeongnam and Ulsan, are under consideration for increases. Considering Seoul’s proactive increase in public transportation fares, it is likely that these regions will follow suit in the future.

A view of an electricity meter at a multi-family house in Seoul on the 30th, as the government is scheduled to announce the electricity and gas rate adjustment plan to be applied in the first quarter of next year. The Ministry of Trade, Industry and Energy will announce the electricity and gas rate adjustment plan for the first quarter of next year on this day. Photo by Kim Hyun-min kimhyun81@

Seoul plans to raise water supply fees, including for households, starting in January, and Incheon, Ulsan, Daejeon, and Sejong also have scheduled increases in water and sewage fees.

Gyeonggi, Jeonnam, Gangwon, and Chungbuk plan to raise water and sewage fees in some local governments within their provinces. Gyeonggi, Jeonnam, and Gangwon have decided to increase the prices of volume-based waste bags within their provinces.

As various fees influenced by the central government are rising, the justification for restraining local public fees has disappeared.

Electricity rates have been raised by 13.1 won per kWh, the largest increase since the oil shock in 1981. Gas rates were frozen in the first quarter but are likely to increase in the second quarter.

The Ministry of Economy and Finance stated in its new year economic policy direction that "to stabilize prices of public fees with high upward pressure, we will minimize factors for increases and, if unavoidable, postpone or spread out the timing of increases."

The inflation rate, which soared to 6.3% last July, is expected to continue its high-level trend around 5% for the time being.