Subway Free Transit Losses Reached 722.8 Billion Won Last Year: "National Funding Needed for Compensation"

Labor and Management Representatives from Six Urban Rail Operators, Including Seoul Metro
Appeal for Legislative Amendments and Financial Support at the National Assembly

Representatives of labor and management from urban rail operators across the country, including Seoul Metro, have called for legislative amendments and government financial support to improve the free transit fare system.

On the morning of the 28th, the National Council of Urban Rail Labor-Management Representatives held a press conference at the National Assembly Communication Office, joined by Assemblymen Park Honggeun and Jung Junho of the Democratic Party of Korea, Assemblyman Lee Heonseung of the People Power Party, and Assemblyman Shin Jangshik of the Rebuilding Korea Party. Together, they urged the government to compensate for losses incurred from free transit fares with national funding. The council includes Seoul, Busan, Daegu, Incheon, Gwangju, and Daejeon Metro Corporations.

At a joint press conference held at the National Assembly Communication Office on the 28th, Paek Ho, President of Seoul Metro, is speaking. Provided by Seoul Metro.

The free transit fare system was introduced in 1980 by presidential directive and has since been implemented based on national laws such as the Welfare of Senior Citizens Act, the Welfare of Persons with Disabilities Act, and the Act on the Honorable Treatment and Support of Persons of Distinguished Service to the State. However, the operating costs are borne by the urban rail operators and local governments, resulting in severe financial deterioration. Last year, losses from free transit fares amounted to 722.8 billion won, accounting for 58% of the total net loss. The accumulated deficit has reached 29 trillion won.

Furthermore, as of this year, Korea's aging rate stands at 20.3%, the fastest in the world, which is expected to further increase the burden on operators in the future.

Since the 17th National Assembly in 2004, multiple legislative amendments have been proposed to restructure the free transit fare system, but none have passed the National Assembly. In the current 22nd National Assembly, four bills-including amendments to the Urban Rail Act (proposed by Jung Junho and 13 others) and the Welfare of Senior Citizens Act and the Welfare of Persons with Disabilities Act (proposed by Lee Heonseung and 11 others)-remain pending.

The participants called on the government to promptly pass the pending amendments to the Urban Rail Act and related laws and to implement national compensation for losses at the same level as Korail. From 2017 to 2023, Korail received approximately 1.2 trillion won in national funding, covering 80% of its free transit fare losses.

Assemblyman Park Honggeun stated, "The right to mobility is a basic condition for a dignified life," adding, "The free transit fare system is both a gesture of respect for our seniors and a social contract for intergenerational solidarity. It should be approached as a matter of social responsibility, not merely as a cost issue."

Paek Ho, President of Seoul Metro, said, "Over the past 40 years, the urban rail free transit fare system has been proven to be a welfare policy with significant socioeconomic benefits, such as guaranteeing seniors' mobility rights, improving health, and revitalizing tourism. I ask for your active support for the national petition so that the pending legislative amendments in the National Assembly can be passed promptly."

The National Council of Urban Rail Labor-Management Representatives plans to secure more than 50,000 signatures for the national petition by November this year. They also intend to actively promote the need for legislative amendments through policy forums, citizen campaigns, and promotional posters and videos.