Gyeonggi Province to Fully Reimburse The Gyeonggi Pass Users for More Than 60 Rides
City Bus Fares Frozen for Six Years... Worsening Financial Balance
Public Hearing on July 11 as Part of Fare Adjustment Procedures
Gyeonggi Province is initiating administrative procedures to adjust city bus fares for the first time in six years since 2019. To help alleviate transportation costs for residents, the province has added a new benefit to The Gyeonggi Pass, in addition to the existing reimbursement rate of 20-53%. The new benefit offers a full reimbursement for any usage exceeding 60 rides per month.
On July 11 at 2:30 p.m., Gyeonggi Province will hold a public hearing at the Gyeonggi Transportation Training Institute to gather feedback from a wide range of stakeholders, including representatives of consumer groups, industry officials, and relevant experts. After collecting opinions from the provincial council and undergoing review by the Consumer Policy Committee, the fare adjustment is expected to take place in the second half of this year.
Previously, despite fare increases for city buses in Seoul and Incheon in 2023, as well as rising prices and higher labor costs for transportation workers, Gyeonggi Province carefully considered adjusting city bus fares. This was due to the central government's policy on local public utility charges and the need to ease the financial burden on residents.
According to the results of a research study conducted last year, the cumulative operating deficit of bus companies in the province for 2023 and 2024 was estimated to reach approximately 170 billion won. The cumulative deficit is projected to reach 380 billion won by 2026, leading to the conclusion that an adjustment of city bus fares is necessary.
To mitigate the impact of fare adjustments on residents' transportation expenses, Gyeonggi Province is expanding the benefits of The Gyeonggi Pass, which reimburses a portion of transportation costs on all public transit nationwide for Gyeonggi residents.
The existing benefit reimburses 20-53% of monthly public transportation costs for those who use it at least 15 times a month (30% for people in their 20s and 30s, 20% for those in their 40s or older, 53% for low-income households, and 30-50% for households with multiple children). Starting in July, a full reimbursement will be provided for all public transportation usage exceeding 61 rides per month. The province explained that there is no additional cost for usage beyond this threshold, effectively creating an integrated fare system with the advantages of a commuter pass.
Park Noguk, Director of Transportation for Gyeonggi Province, stated, "We have postponed city bus fare adjustments for as long as possible over the past six years, but it has become unavoidable to proceed with this change. While we will carefully consider the extent of the fare adjustment to minimize the burden on residents, we will also continue to strengthen the benefits of The Gyeonggi Pass, which is used by 1.4 million Gyeonggi residents, and do our utmost to improve city bus services going forward."
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