Seoul Also Raised Fares... Yongin Village Bus "Please Increase the Fare"

Demand Stagnation and Rising Cost Burdens Despite 4 Years of Fare Freeze
City Unwilling to Raise Prices Amid Industry's 100-Won Increase Request Due to "Inflation Burden"

There is a conflict between Yongin City in Gyeonggi Province and the local industry over village bus fares. The industry is demanding a fare increase due to financial difficulties, but the city is taking a cautious stance due to concerns about the increased burden on citizens following successive public utility fee hikes.

According to Yongin City and the local village bus industry on the 3rd, the industry recently requested the city to raise the current average fare of 1,350 won (based on transportation card) by 100 won to 1,450 won. Currently, in the Yongin area, nine companies operate a total of 362 village buses on 110 routes, including 2 public, 62 semi-public, and 46 private routes.

The reason companies are demanding a fare increase is that deficits have been accumulating due to a decrease in passengers after COVID-19, coupled with rising prices such as fuel costs and labor shortages, which have worsened management difficulties. On the other hand, fares have been frozen for the past four years since 2019.

The average operation rate of village buses in the Yongin area remains at about 80%. Considering that the operation rate for public and semi-public buses is 100%, the operation rate for private village buses is only around 60%. A company official explained, "Because drivers must be prioritized for semi-public buses that must maintain a 100% operation rate, the operation rate of private buses inevitably remains low."

The industry also states that the sharply increased costs are a burden. According to the industry, fuel costs have risen by 42% over the past four years since 2019, and the costs of various parts such as tires have also increased by more than 30%. Additionally, although the number of public transportation users has stagnated since COVID-19, fares have remained the same, intensifying management difficulties, according to the industry.

However, Yongin City maintains that it is not considering a fare increase. A city official explained, "With planned fare hikes for railways and other services, raising bus fares as well could increase the cost of living burden on low-income residents," adding, "At present, we are not considering a fare increase." According to the urban railway fare increase plan, the fare for the Yongin Light Rail will rise by 150 won from 1,250 won to 1,400 won starting this October.

The fact that other local governments in the Seoul metropolitan area are not showing significant moves to raise fares also seems to be a reason for Yongin City's cautious stance. Currently, Seoul City has raised village bus fares by 300 won, but among Gyeonggi Province local governments, only Goyang City has announced plans to increase fares.