Seoul Metro deficit widens despite fare hikes, company seeks government aid

Seoul Metro's financial struggles deepened in 2025, with the company reporting a net loss of 826.8 billion won. This marks a 14.2% increase from the previous year's deficit of 724.1 billion won, despite a 150 won subway fare hike implemented in the latter half of 2024 across the Seoul metropolitan area.

The company, which operates Seoul subway lines 1-8 and parts of line 9, has seen its net losses rebound after a decrease in 2023. A report from Korea Investors Service in May 2024 highlighted the challenges of operating urban rail services, which are characterized by high public utility and limited fare increases. These factors, combined with rising labor and depreciation costs, and the financial burden of free rides for the elderly and transit discounts, have led to persistent operational deficits.

While Seoul Metro receives subsidies from the city government, ongoing expenditures for facility modernization and continuous investment place a significant financial strain on the company. Seoul Metro is actively seeking financial support from national and local governments for public service obligations. These include fare losses from free rides for seniors (448.8 billion won), discounts for bus transfers (290.7 billion won, covering 40% of losses for Gyeonggi and Incheon), and commuter passes (77.2 billion won).

The company noted that the cost of transporting a single passenger on lines 1-8 in 2025 was 1,817 won, while the average fare collected was only 1,036 won. Despite an increase in passenger numbers and the fare hike, these measures proved insufficient to alleviate the financial difficulties. The growing elderly population is expected to further increase fare losses.