Labor and management representatives of South Korea's six urban railroad operators called on the central government to cover losses from free rides provided to older adults and people with disabilities. They urged that the current structure, under which local governments and rail operators absorb costs arising from national welfare policy, be changed so that the central government, local governments and operators share the burden.
Representing labor and management at the six operators, Seoul Metro and Incheon Transit Corp. held a meeting on the 15th at the National Assembly with Yoo Eui-dong, chairman of the Land, Infrastructure and Transport Committee, to request state funding for free-ride losses. Seoul Metro was represented by Chief Executive Kim Tae-kyun and Kim Jung-seop, head of the Seoul Metro labor union.
"Free rides on urban railroads are a transportation welfare program implemented nationwide under national laws including the Welfare of Older Persons Act and the Act on Welfare of Persons with Disabilities, yet the costs are borne entirely by local governments and rail operators," the representatives said, stressing the need to shift to a three-way cost-sharing structure among the central government, local governments and operators.
To that end, they also asked the committee to move quickly on amendments to the Urban Railroad Act now pending before it. Bills currently before the National Assembly would have the state subsidize public-service costs incurred by urban railroad operators or cover free-ride expenses. The representatives raised a fairness issue, noting that Korail receives state funding for its free-ride losses under the Framework Act on Railroad Industry Development.
The financial strain on urban railroad operators from free rides continues to grow. Last year, free-ride losses at the six operators totaled 775.4 billion won ($559 million), accounting for 52.1% of their combined net loss.
Seoul Metro also asked for more state funding for urban railroad safety. With about 1 trillion won a year needed to reinvest in upgrading aging facilities and replacing old train cars, the company asked that safety-related state funding cut from the 2027 government budget proposal be restored.
"Financial pressure from free rides is reaching its limit, and safety investment essential to operations could be squeezed," Kim Tae-kyun, chief executive of Seoul Metro, said, urging swift passage of the amendments to the Urban Railroad Act.
