“Government to Cover Losses from Free Metro Rides for Elderly and Disabled”

Chairman Imangyu Daegu City Council Proposal

Original Plan Passed by the Council of City and Provincial Chairpersons

[Asia Economy Yeongnam Reporting Headquarters Reporter Koo Dae-seon] On the 26th, Lee Man-gyu, Chairman of the Daegu Metropolitan Council, submitted the "Proposal for National Government Support for Losses from Statutory Free Rides on Urban Rail Transit" at the "2023 1st Extraordinary Meeting of the Korea Council of Chairs of Metropolitan and Provincial Councils" held in Ulsan, which was passed as originally proposed.

At the meeting, Chairman Lee Man-gyu stated, "The statutory free rides on urban rail transit for the elderly, disabled, and others, implemented in 1984 by presidential directive, have greatly contributed to guaranteeing the mobility rights of the disabled and creating social, economic, and cultural benefits. However, the accumulated losses from free rides over the past five years alone exceed 2.7 trillion won," adding, "The annual average loss of 552.6 billion won occurring in six major cities with subway operations?Seoul, Busan, Incheon, Daegu, Gwangju, and Daejeon?causes financial difficulties for urban rail transit operations and places a serious burden on local government finances, necessitating national-level measures."

Currently, according to enforcement ordinances related to the Elderly Welfare Act, the Disabled Welfare Act, and others, seniors aged 65 and over, disabled persons, and national merit recipients do not pay 100% of urban rail transit fares.

According to Article 21 of the Local Finance Act, when local governments perform national affairs, the state should bear the related financial burden based on the principle of causation. However, the government is entirely shifting the losses from free rides on urban rail transit to local governments, and the amendment to the Urban Rail Transit Act to compensate local governments for these losses has yet to pass the National Assembly due to government opposition.

Iman-gyu, Chairman of Daegu City Council.

In this proposal, Chairman Lee Man-gyu demanded, "Losses from free rides on urban rail transit should not be costs borne by local governments that have no authority over fare setting, and according to relevant laws, the Ministry of Health and Welfare, the Ministry of Patriots and Veterans Affairs, and other responsible ministries should proportionally allocate and provide national funds." He also strongly urged the National Assembly to "promptly enact legislation related to public services, such as the Urban Rail Transit Act, to establish grounds for government support to local governments for losses caused by free rides."

The proposal was passed by the council as originally proposed and is scheduled to be officially submitted as a formal request from the Korea Council of Chairs of Metropolitan and Provincial Councils to the Ministry of Land, Infrastructure and Transport, the Ministry of Health and Welfare, and other relevant ministries, as well as the National Assembly, in the near future.