Seoul City Council Halts Expanded Support for Han River Bus Operator Amid Financial Woes

The Seoul City Council has put the brakes on the Seoul Metropolitan Government's attempt to increase financial aid for the struggling Han River bus service. In a decisive move, the Environment and Water Resources Committee voted down a proposed amendment to the operating agreement. This decision reflects a growing unease among council members, spanning both the ruling and opposition parties, regarding the financial viability of the Han River bus project and the city's management of it. The committee's action signals a clear message that the current financial trajectory of the operator is unacceptable and that further public funds require more rigorous justification.

The core of the issue lies in the dire financial state of the joint venture company, Han River Bus Co., Ltd. Recent audits reveal that the company has incurred cumulative losses reaching 16.1 billion won by the end of 2025, leading to a complete erosion of its capital. The first year of operation alone saw a gross operating loss of approximately 2.8 billion won, indicating that the service is consistently losing money. This financial instability has raised serious questions about the sustainability of the project and the wisdom of injecting more public money into it without a clear path to profitability or improved operational efficiency.

Adding to the council's concerns are revelations from a recent audit by the Board of Audit and Inspection. The audit highlighted that the Seoul Metropolitan Government proceeded with the project and even publicly announced a target speed of 17 knots, despite knowing that the actual operating speed of the ferries was significantly slower, ranging between 14.5 to 15.6 knots. This discrepancy between advertised performance and actual operation has fueled skepticism about the transparency and effectiveness of the city's oversight. From a local perspective in Seoul, this situation is particularly sensitive. The Han River bus was envisioned as a new mode of public transportation and a tourist attraction, but its financial woes and questions surrounding its management have tarnished its image. The City Council's decision, therefore, is not just about fiscal responsibility; it's also about ensuring public trust and demanding accountability from the city administration in managing large-scale public projects.

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The amendment to the business agreement has problems, so it should be rejected.