Seoul Transportation Corporation said on the 7th that it adopted a joint resolution urging the national government to cover the public service expenses for legal free rides with five urban rail operating agencies across the country.
On the same day, the transportation corporations of Seoul, Busan, Daegu, Incheon, Gwangju, and Daejeon delivered a joint resolution with this content to the Chairman of the National Assembly's Land, Infrastructure and Transport Committee and government relation departments.
These six urban rail operating agencies reported that a loss of 722.8 billion won occurred from legal free rides last year. The expense of such legal free ride losses has been on the rise annually since 2020, with 445.5 billion won in 2020, 471.7 billion won in 2021, 536.7 billion won in 2022, and 617.4 billion won in 2023.
Legal free rides on urban rail are a transportation welfare policy targeting seniors over 65, people with disabilities, and veterans. The urban rail operating agencies claimed, "The free ride system has been implemented based on legal grounds for more than 40 years since 1984, but there has been no government support."
Regionally, based on last year's figures, Seoul Transportation Corporation had the largest loss amounting to 413.5 billion won, accounting for 57% of the total. It was followed by Busan Transportation Corporation (173.8 billion won), Daegu Transportation Corporation (68.1 billion won), Incheon Transportation Corporation (47.0 billion won), Daejeon Transportation Corporation (12.5 billion won), and Gwangju Transportation Corporation (7.9 billion won).
Seoul Transportation Corporation estimated that the loss from free rides will exceed 500.0 billion won in 2024.
The urban rail operating agencies also noted that Korea Railroad Corporation (KORAIL), which operates metropolitan rail services, receives reimbursement for free ride loss expenses from the government under the Basic Law on Railroad Industry Development.
According to the urban rail operating agencies, KORAIL has been receiving free ride loss expenses of around 200.0 billion won over the recent five years from 2019 to 2023. The reimbursement rate for free ride loss expenses is 88%.
Representatives from the urban rail operating agencies said, "The government is both the cause and beneficiary of legal free rides, so it should bear the public expenses incurred to maintain the transportation welfare system," adding, "To ensure the sustainability of the free ride system, national funding support for public expenses is necessary."