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’s 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 “village bus service improvement agreement” in October, they signed an additional agreement on December 18 centered on these measures. Both parties have committed to jointly promoting improvements to village bus services that citizens can tangibly experience.

Seoul Mayor Oh Sehoon and Kim Seungyong, 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 as it definitively ends the controversy over the potential withdrawal of village buses from the transfer discount system, which could have caused inconvenience to citizens. Since the meeting between Seoul Mayor Oh Se-hoon and the association’s board of directors on September 26, the two sides have built consensus on service improvements through more than 30 rounds of discussions, including the first agreement on October 2 and subsequent working-level meetings.

Prior to the agreement, the city conducted a comprehensive inspection of all 252 routes to address previously raised issues such as non-compliance with first and last bus schedules, irregular intervals between buses, and non-operating vehicles. Going 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 deficit-running operators, the city will introduce incentive budgets based on service evaluation results, such as transportation contribution, 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, routes run by deficit operators (154 routes) that have suffered from insufficient service will see increases of 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 operation records based on the T-money system, to establish compliance with route schedules as a key management indicator, and will continue to consult with the association to ensure that service improvements are actually 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 results with the association. The system will be gradually refined, with the improved operation framework set to be fully established from 2027.

Kim Yongseung, 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 inconveniences experienced by citizens. The association will continue to do its best to operate safe and trusted village bus services as the closest means of transportation for citizens.”

Mayor Oh said, “With this agreement, we have established an operational framework for village buses that will enable citizens to use them with greater peace of mind and convenience. We will ensure that service improvements are implemented without delay so that citizens can truly feel that village buses have changed.”

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