"800 Won Deficit Per Passenger Arrival"... Seoul Subway in Distress

"Limitations of Debt Reduction Through Self-Effort Alone"

Seoul Metro, which operates subway lines 1 to 8, reportedly incurred a loss of about 800 won for every passenger it carried.

According to data received by Kim Ji-hyang, a member of the People Power Party from Yeongdeungpo 4 district in the Seoul Metropolitan Council, the corporation suffered a loss of 798 won per passenger last year.

The photo is not related to any specific expression in the article. [Image source=Yonhap News]

The cause of the deficit is analyzed to be the fare (1,400 won, or 962 won excluding transfer fees) being lower than the transportation cost (1,760 won). The cost recovery rate was only 54.7%.

As losses accumulated, the corporation's total debt approached 7.0833 trillion won as of June this year. The debt also increased, with interest expenses from borrowing over the past five years totaling 372.3 billion won. Due to the impact of the base interest rate hike, about 370 million won per day was spent on interest at high rates this year.

Amid growing concerns over the corporation's financial deterioration, CEO Baek Ho acknowledged that "there are limits to reducing debt through self-help efforts alone" and emphasized that "raising fares and resolving losses from free rides are urgent." Seoul's free ride system issues 'Preferential Transportation Cards' to citizens aged 65 and older. Using this transportation card allows free rides on metropolitan area urban railways.

Assemblyman Kim said, "With the corporation's massive financial deficit, it is difficult to expect further improvements in citizen safety and service," and urged, "Please secure national and city funding and make self-help efforts to provide safer and more convenient services."