Abolishing Free Subway Rides for Seniors Promoted by Lee Jun-seok [What Do You Think?]

Rapid Aging Leads to System Lifespan Expiry
Fairness and Equity Controversies
Igniting Intergenerational Conflict
Cost-Benefit Analysis First... Age Increase Also Suggested

As the Reform New Party led by former People Power Party leader Lee Jun-seok proposed abolishing free subway rides for those aged 65 and older as an election pledge, the representative welfare policy of ‘free subway rides for the elderly’ has once again become embroiled in controversy over its continuation. According to the Elderly Welfare Act, those aged 65 and above can ride the subway for free regardless of their income, but rapid aging has led to increasing criticism regarding the policy’s effectiveness and practicality. Subway deficits lead to fare hikes and intergenerational conflicts, fueling social debate.

The Reform New Party recently announced a pledge to abolish the ‘free subway rides for those aged 65 and older’ system and replace it with an annual prepaid transportation card worth around 120,000 KRW, usable on urban rail, buses, and taxis. Former leader Lee Jun-seok emphasized, “This system, modeled after the Soviet Union’s free rides for the elderly, has now reached the end of its lifespan. The costs incurred from free rides remain as debt, passed on to future generations.”

The current subway free ride benefit began in 1980. The ‘Senior Citizen Discount Implementation Plan’ passed by the State Council in 1980 included a 50% discount on fares for railroads, subways, intercity buses, and park entrance fees for those aged 70 and above. In 1984, the subway fare discount was changed to 100%, and this benefit has continued for 40 years. At the time of introduction, the elderly population was small, so the cost burden was low. However, since 2000, the rapid increase in the elderly population has caused various problems.

The first issue is the chronic deficit faced by Seoul Metro. According to Seoul Metro, the average monthly number of free rides by seniors aged 65 and older last year was about 19 million (including duplicates). In 2022, Seoul Metro’s losses due to free rides were estimated at approximately 315.2 billion KRW. Seoul City raised the basic subway fare by 150 KRW last October and plans to increase it by another 150 KRW in July.

Issues of fairness and equity are also problematic. Since the free ride benefit is limited to the subway, elderly residents in areas without subway service are excluded from the benefit, raising fairness concerns. It is also criticized for violating equity because elderly residents living in station areas or the metropolitan area, who tend to have relatively higher incomes, benefit more.

Experts acknowledge the limitations of the current ‘free rides for seniors aged 65 and older’ system and agree that not only local governments but also the central government should share the costs of free rides. However, they emphasize the need to carefully evaluate the benefits and effectiveness of the system to identify improvements.

Lee Jun-seok, Chairman of the Reform New Party's Policy Committee, is delivering a congratulatory speech at the 'New Future Party Founding General Assembly' held on the 16th at Seoul Women's Plaza in Dongjak-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

Professor Yoo Jeong-hoon of Ajou University’s Department of Transportation Systems Engineering said, “The criticism regarding the unfairness and regressive aspects of the current system, as raised by former leader Lee Jun-seok, is valid,” but added, “Since this system has been maintained for a long time, decisions on improvements should be made carefully, considering the benefits and effectiveness of the current system.” He noted, “Mobility rights for the elderly are directly linked to mental health, medical expenses, and health issues, so it is difficult to abolish the policy abruptly.”

Professor Lee Dong-seok of Daegu University’s Department of Social Welfare viewed raising the age limit as more realistic than the prepaid card alternative proposed by the Reform New Party. He said, “If the card is given uniformly, it will be less effective for beneficiaries who use cars or other transportation modes,” and added, “Raising the retirement age baseline is more practical, and discussions should be held long-term alongside public transportation fare public systems like the bus quasi-public system.”

There are also calls for the central government to publicize and resolve this issue from the perspective of social consensus on the retirement age baseline. Professor Yoo said, “Raising the age for free subway rides should be discussed together with extending the retirement age and reconsidering pension receipt timing,” and added, “Since this is a policy under the Elderly Welfare Act, it should be publicized at the government level, including the Ministry of Economy and Finance.”

Meanwhile, Seoul City raised subway fares from 1,250 KRW to 1,400 KRW per card ride on October 7 last year and is considering adjusting the fare to 1,550 KRW with an additional 150 KRW increase as early as July this year. As of 2022, Seoul City’s cumulative subway deficit stands at 17.6808 trillion KRW.