Choo Kyung-ho, "The Logic of Supporting Free Subway Rides by Local Governments Is Not Sound"

[Asia Economy Sejong=Reporter Dongwoo Lee, Sejong=Reporter Seungseop Song] On the 7th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho addressed the issue of "free subway rides for the elderly," stating, "It does not make logical sense for local governments to claim financial difficulties and ask for support."

[Image source=Yonhap News]

During the National Assembly's economic sector questioning session, in response to People Power Party lawmaker Hong Seok-jun's inquiry that "local governments say government financial support is necessary for free rides on public transportation such as subways for senior citizens," Deputy Prime Minister Choo said, "Some local governments operate their own facilities and argue 'there is a deficit, so the country should support us,' which is a flawed logic."

He added, "Seoul has the highest financial independence rate in the country, exceeding 80%, and if it claims financial difficulties, then how can provinces like Jeonnam and Gyeongbuk, with less than 30% financial independence, cover their financial support needs?" He emphasized, "From an equity perspective, it does not make sense. It is unreasonable to ask the central government to borrow more and support financially sound local governments." This clearly expresses opposition to demands from Seoul Mayor Oh Se-hoon and others for the government to share subway deficits.

Deputy Prime Minister Choo stated, "The subway operated in Seoul is a local government affair of Seoul City, so the local government should be responsible for operating it with its own budget," adding, "(Regarding senior citizen fares) making them free is entirely at the discretion of the local government according to laws and regulations." He further argued, "The first priority should be Seoul's self-effort to conduct management diagnosis and examine whether there are areas for efficiency improvement or cost reduction in the deficit portion."

However, he explained, "The government has provided 2.2 trillion won to improve screen doors, aging vehicles, and other safety-related issues where accidents have occurred, and will provide more than 140 billion won in funds this year as well."

Regarding raising the age for free rides, Deputy Prime Minister Choo said, "There are various opinions, from the view that 65 is too low to suggestions to limit usage times," and added, "On one hand, there is the reality that seniors retire at 60 and the elderly poverty rate is high." He also mentioned, "How to handle those aged 65 and over should be a matter for social discussion, whether at the national or local level."