Seoul Village Bus Transfer Withdrawal Dispute Resolved... Increased Operations and Expanded Financial Support

Seoul City and Association Reach Agreement on Service Improvements
Up to 12% Increase in Operations for Deficit Operators
KRW 50 Billion in Financial Support Including Recruitment Incentives

The controversy over the potential withdrawal of Seoul village buses from the transfer discount system has been resolved. The Seoul Metropolitan Government and the Seoul Village Bus Transportation Business Association have reached a final agreement to normalize village bus operations, focusing on expanding financial support and increasing the number of operations.

The city and the association announced on December 21 that, following their initial "Agreement on Improving Village Bus Services" in October, they had signed an additional agreement on December 18 centered on these measures. They will jointly promote improvements to village bus services that citizens can directly experience.

Seoul Mayor Oh Se-hoon and Kim Yongseung, Chairman of the Village Bus Association, agreed on improving village bus services, focusing on expanding financial support and increasing the number of operations. The photo shows them posing for a commemorative photo after the agreement. Seoul City

This additional agreement is significant in that it definitively resolves the controversy over the withdrawal of village buses from the transfer discount system, which could have caused inconvenience to citizens. Since a meeting between Seoul Mayor Oh Sehoon and the association's board of directors on September 26, the city and the association have built consensus on service improvements through more than 30 rounds of discussions, including the first agreement on October 2 and the operation of a working-level council.

Prior to the agreement, the city conducted a comprehensive inspection of all 252 routes to address ongoing issues such as non-compliance with first and last bus schedules, irregular intervals between buses, and vehicles not in operation. Moving forward, the city plans to transition to an operation system that strengthens punctuality and reliability starting in 2026.

To achieve this, financial support for village buses will be increased from 41.2 billion won in 2025 to 50 billion won in 2026. In addition to supporting companies running deficits, the city will introduce incentive budgets based on service evaluation results, such as transportation contributions, and provide special support linked to driver recruitment.

The total number of village bus operations will increase by about 5% compared to this year. In particular, for 154 deficit-route companies with insufficient service, the number of operations will be increased by up to 12%. The association will also work to improve citizens' satisfaction by strengthening bus intervals during commuting hours and other measures. The city will use objective data, such as T-money-based operation data, to set compliance with operation routes as a core management indicator and will continue to consult with the association to ensure that service improvements are implemented on the ground.

The city has designated 2026 as the inaugural year for village bus service improvements. Taking into account on-site conditions such as driver recruitment, a three-month pilot operation will be conducted, followed by a review of operational performance with the association. The system will then be gradually refined, with the improved operation system to be fully established from 2027.

Kim Yongsung, Chairman of the Seoul Village Bus Transportation Business Association, stated, "Although the process was not easy, I believe this agreement is the first step toward resolving both the difficulties faced by association members and the inconvenience experienced by citizens. The association will continue to do its utmost to operate safe and reliable village buses as the closest means of transportation to citizens."

Mayor Oh said, "With this agreement, we have established an operating system for village buses that allows citizens to use them with greater peace of mind and convenience. We will ensure that service improvements are implemented without delay so that citizens will recognize the positive changes in village bus services."

The Seoul Metropolitan Government and the Seoul Village Bus Transportation Business Association have continued to clash over the scale of compensation for public transportation transfer discounts. Yonhap News