Seoul Subway Fare Hike for Seniors: Avoiding a Welfare Gap

Seoul is contemplating a significant shift in its public transportation policy, proposing to raise the age for free subway rides from 65 to 70. This potential change, which could be discussed in a public hearing as early as this month, is part of a broader strategy to address the Seoul Metro's mounting financial deficit. Concurrently, the Seoul City Council has approved a measure to subsidize bus fares for individuals aged 70 and above. The city plans to reallocate a portion of the savings generated from reducing subway subsidies to fund these bus fare benefits.

The primary driver behind the proposed age increase is the severe financial strain on the Seoul Metro. The free subway ride program for individuals aged 65 and over, introduced in 1984, has become a substantial factor in the company's losses, particularly as the senior population grows. In 2025, Seoul Metro's net loss is projected to reach 826.8 billion won, an increase from 724.1 billion won in 2024. Public service costs borne by the company amounted to 816.7 billion won in the same period, with senior free rides accounting for 448.8 billion won of that total.

Similar financial challenges are faced by other major cities with subway systems. Daegu, for instance, began incrementally raising its free subway ride age from 65, adding one year annually, starting in 2023. The city also plans to phase in a bus free ride program starting at age 75 and decreasing by one year annually, aiming for both subway and bus rides to be free for those 70 and older by 2028. These adjustments reflect a societal re-evaluation of the definition of "senior" and the associated welfare provisions.

While the need to adapt welfare systems to changing demographics and economic realities is acknowledged, the article highlights the significant social and economic benefits of the current free subway system. For over four decades, it has been a crucial tool for enhancing seniors' mobility, promoting physical and mental health, reducing healthcare costs, and stimulating local economies through increased tourism and consumption. A study in Daegu indicated that a 92 billion won investment in free bus transportation generated 153.1 billion won in economic benefits. Therefore, the article argues for a comprehensive social consensus that considers these broader benefits, not just the immediate deficits. It also stresses the importance of meticulous policy design to prevent a "transportation welfare gap" for those losing benefits or those in underserved areas who may not have previously benefited.