Seoul subway, bus fares may be 300 won more expensive next spring

A person purchases a subway ticket at a station in Seoul on Dec. 26. [YONHAP]

Subway and bus fares in Seoul are likely to rise by a few hundred won from as early as next April to make up for its growing deficits.

The Seoul Metropolitan Government proposed a public transportation fare raise for both subways and city buses by 300 won (24 cents) in late April, according to the city government on Thursday.

This will be the first price raise in eight years. In June 2015, bus fares were raised by 150 won and subway fares by 200 won.

Currently, the subway fare in Seoul when paid for using a transportation or credit card is 1,250 won, and 1,200 won for city buses. The price hike will increase the fare to 1,550 won and 1,500 won each.

The proposed fare hikes come as the city government operating subways and public buses failed to secure enough funds to make up for a growing deficit. The government also did not allocate a budget for public service obligation (PSO) compensation that could make up for the deficit caused by the free subway use policy for those aged 65 and older, the underprivileged and people with disabilities.

The city government also explained that the price hike is inevitable in order to replace the outdated public transportation facilities.

According to the city government, Seoul Metro, the city-run operator of the subway system in Seoul, has suffered an average net loss of around 920 billion won annually from 2018 to 2022.

Similarly, the bus operator in the capital city has also suffered an average net loss of around 540 billion won annually in the same period.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]