Gwangju City Council: "Government Should Compensate for Free Rides on Urban Railways"

Adoption of a Government Proposal
Urging National Subsidies for Free Rides on Urban Railways

A view of Gwacheon City Council.

On June 16, Gwangju City Council adopted a "Government Proposal Urging National Subsidies for Free Rides on Urban Railways" during the second plenary session of the 332nd first regular meeting.

The Industrial and Construction Committee of Gwangju City Council stated, "Local urban railways contribute to the realization of universal transportation welfare for citizens." The committee further explained, "Nevertheless, due to the legally mandated free ride system, local governments and local urban railway operators are shouldering enormous losses, which has led to a fiscal crisis."

The committee continued, "As of last year, the nationwide loss from free rides at urban railway operators amounted to approximately 722.8 billion won." The committee also argued, "In the case of Gwangju, the loss per person compared to transportation costs is 5,622 won, and the fare realization rate is 18.1%, which is the lowest level nationwide, making autonomous management virtually impossible."

In particular, the committee pointed out, "Korea Railroad Corporation, which operates the same free ride system, receives compensation for its losses from the national government, resulting in a severe disparity in fairness compared to local urban railways." The committee criticized, "Although the beneficiaries of the government's welfare policy are all citizens nationwide, the burden is being shifted to local governments." The committee then urged the government and the National Assembly to legislate national subsidies for free rides on local urban railways and to allocate a budget for such support.

Park Pilsun, chairperson of the Industrial and Construction Committee, stated, "Financial support for the free ride system, which is implemented under national responsibility, should naturally be borne by the central government, and the fiscal difficulties faced by local governments can no longer be ignored." Park added, "With the adoption of this proposal, we urge the government and the National Assembly to fully recognize the challenges faced by local urban railway operators and to actively pursue practical measures for national subsidies."