There are concerns that, starting next year, public transportation fares paid by Seoul residents will increase. Village bus operators said they will no longer offer fare discounts even when passengers transfer to the subway or city buses, citing accumulated deficits. Because village buses run on steep slopes or narrow alleys where city buses do not go, if public transportation transfer discounts are not applied, the burden will grow for residents living in areas with poor transit access.
On the 22nd, at a press conference held in the union conference room in Daerim-dong, Yeongdeungpo District, Seoul, Chair Kim Yong-seung of the Seoul Village Bus Transportation Business Association (hereinafter "Village Bus Association") said, "All 1,600 or so vehicles of the 140 carriers under the association will withdraw from Seoul's public transportation transfer system as of Jan. 1 next year."
Previously, on Jul. 1, 2004, the Seoul Metropolitan Government implemented an integrated transfer discount system between buses and the subway. Under the system, when citizens transfer between the subway and buses, they are not charged the base fare twice and fares are charged based on the distance traveled. In 2007 it expanded to Gyeonggi buses, in 2008 to metropolitan buses, and in 2009 to Incheon buses, applying a single integrated public transportation fare system across the greater Seoul area.
Under the "public transportation transfer agreement" signed on Jul. 1, 2004 with the Seoul Metropolitan Government and the Seoul Bus Transportation Business Association, the Village Bus Association has been providing fare discounts when passengers who use village buses transfer to city buses or the subway. The agreement has been automatically renewed every year until now. The association officially notified the Seoul Metropolitan Government and the Seoul Bus Transportation Business Association that it will not further extend the term of the agreement and will terminate it as of Dec. 31 this year.
The Village Bus Association is withdrawing from the public transportation transfer system because it believes deficits are accumulating and Seoul's support is insufficient. Subway Lines 1–8 are operated by Seoul Metro, a city-affiliated public corporation, and city buses are operated under a semi-public system in which the city compensates operators for transportation losses.
The base fare for village buses is currently 1,200 won. If a passenger uses a village bus, the subway, and a city bus, the subway base fare (1,550 won) applies. According to the Village Bus Association, in that case the settled amount is 438 won for the village bus operator, 565 won for the subway operator, and 547 won for the city bus operator. The association argues that village buses take passengers and incur a loss of 762 won.
The Village Bus Association said it currently settles an average of 600 won per transfer passenger. It added, "Because the Seoul Metropolitan Government does not compensate private village bus companies for the 600 won transfer loss, we are facing operational difficulties."
From 2017 through Jul. of this year, over about nine years, the transfer losses of the 140 village bus operators totaled 866.8 billion won. The Seoul Metropolitan Government provided 282.3 billion won in support. The losses borne by the operators totaled 584.5 billion won.
The Village Bus Association asked the Seoul Metropolitan Government for three items: adjustment of the fare settlement method for transfer passengers; the addition of a provision to the "public transportation transfer agreement" to compensate transfer losses; and aligning transportation costs each year with inflation and wage increases. Last month, it also held four rallies near City Hall and the Seoul Metropolitan Council to urge the normalization of transfer fares.
In preparation for withdrawing from the public transportation transfer discount system starting Jan. 1 next year, the Village Bus Association plans to build a Tmoney-based, village bus–exclusive transit card system. It also plans to form an emergency response committee with members and experts, and will respond actively if the Seoul Metropolitan Government takes "unfair measures."
Chair Kim said, "The Village Bus Association and the 140 village bus companies will continue to work closely with the Seoul Metropolitan Government so that withdrawing from the transfer system does not cause inconvenience for citizens."