At a National Assembly forum attended in large numbers by lawmakers from the ruling Democratic Party of Korea, a claim was raised that the government should be responsible for covering the free-ride losses borne by local governments and their affiliated urban rail operators for riders such as seniors age 65 and older.
Seoul Metro said on the 10th that it held a policy forum to improve the urban rail free-ride system at the National Assembly Library, hosted by the joint council of six urban rail operators nationwide—Seoul Metro, Busan Transportation Corporation, Daegu Metropolitan Transit Corporation, Incheon Transit Corporation, Gwangju Metropolitan Rapid Transit Corporation, and Daejeon Metropolitan Express Transit Corporation—and the Korean Society of Transportation.
The forum was co-hosted by 19 lawmakers from both ruling and opposition parties and was sponsored by the Governors Association of Korea. The lawmakers who co-hosted the forum were Park Hong-geun, Park Ju-min, Kim Ju-young, Bok Ki-wang, Jeon Yong-gi, Cheon Jun-ho, Choi Ki-sang, Yoon Jong-kun, Lee Yong-woo, Jeong Jun-ho, and Chae Hyeon-il of the Democratic Party of Korea; Lee Heon-seung, Kim Hee-jung, Kwon Young-jin, Bae Jun-young, and Eom Tae-young of the People Power Party; and Shin Jang-sik, Jeong Chun-saeng, and Cha Kyu-geun of the Rebuilding Korea Party.
Yonsei University Professor Kim Jin-hee said in a presentation on "Improvement plans for the public service obligation (PSO) in urban rail" that "as the senior population surges, a fundamental reexamination of the system's sustainability (for free rides for seniors) is needed."
Yonsei University Professor Jeong Jin-hyeok cited overseas cases and proposed introducing a "conditional free ride" system such as partial discounts or a method in which users prepay fares and receive refunds. Han Young-hui, head of planning at Seoul Metro, said, "Because free rides are based on a presidential directive and the law, the government's responsibility must be made clear."
Domestic urban rail does not charge fares to people age 65 and older, people with disabilities, and national merit honorees. In 1980, a "50% discount for seniors age 70 and older" was introduced, and in 1984, under a directive by former President Chun Doo-hwan to "elevate respect for the elderly," the enforcement decree of the Senior Welfare Act was revised to cement "full fare exemption for age 65 and older." At the time, the senior population was small and there were only a few subway lines, so the burden was limited, but as aging has accelerated, the burden on each local government has grown.
Last year, nationwide urban rail free-ride losses totaled 772.8 billion won. Seoul Metro accounted for 413.5 billion won, and Busan Transportation Corporation for 173.8 billion won. At Seoul Metro, losses from free rides made up 57.1% of last year's net loss. Busan Transportation Corporation's net loss last year was 107.4 billion won, while losses from free rides were 173.8 billion won. If the government compensates for free-ride losses, they could turn to a surplus.
Under the Framework Act on the Advancement of the Railroad Industry, the government provides about 70% support for free-ride losses incurred on urban rail operated by the Korea Railroad Corporation (KORAIL).
Local governments and affiliated operators that run urban rail have steadily proposed system improvements on free-ride losses to the government and the National Assembly. The six urban rail operators delivered a joint proposal for national funding support for free rides to the National Assembly's Land Infrastructure and Transport Committee and to ruling and opposition presidential candidate camps in May, and to the Lee Jae-myung administration's Presidential Committee on Policy Planning in Jul.
The enforcement decree of the Senior Welfare Act stipulates fare discounts of 30% for Saemaeul and Mugunghwa trains and 100% for urban rail for seniors. However, the privately financed Busan-Gimhae Light Rail Transit charges seniors 100% of the fare, and the Great Train Express (GTX)-A line provides only a 30% discount.