Daegu City: Senior free transit program yields 61.1 billion won economic effect in 2.5 years

Daegu City's pioneering free public transportation initiative for seniors has demonstrated significant economic and social benefits, according to an analysis presented at the 'Public Transportation Revitalization Forum.' Launched in July 2023, the program, which integrates free bus and subway access for the elderly, has already generated a net economic effect of 61.1 billion won within its first two and a half years of operation.

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The economic analysis of the senior free public transportation support project shows a net effect of 61.1 billion won in 2 years and 6 months.

The analysis projects a sustained positive impact, with an average annual net benefit of 35.1 billion won expected from 2023 to 2035. Over the entire analysis period, the total economic benefit is estimated at 1.19 trillion won, with a net effect of 411.5 billion won, confirming the program's long-term sustainability as a welfare policy.

Crucially, the initiative's impact extends beyond mere economic gains. Health and social benefits, including reduced medical expenses, decreased depression, suicide prevention, and eased caregiving burdens, account for nearly half (49.14%) of the total benefits. The program has demonstrably enhanced seniors' mobility, with bus usage by seniors nearly doubling from 9.67% to 17.59% and the proportion of those using public transport five or more times a week increasing from 27.7% to 55.0%.

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The project has confirmed its sustainability as a transportation welfare policy.

Furthermore, the increased mobility has stimulated local economies, with tourism and consumption effects contributing 22.38% to the overall benefits. User satisfaction surveys reveal overwhelming support, with 98.5% of respondents expressing satisfaction, primarily citing cost savings. The program has also encouraged a shift away from private car usage, with reliance on cars decreasing from 10% to 2% among users. Daegu City officials note that the program also contributes to accident prevention, reduced traffic congestion, and lower environmental pollution.

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The reduction in medical expenses, decrease in depression, suicide prevention, and easing of caregiving burden accounted for 49.14% of the total benefits.