Free subway rides for the elderly becomes political flashpoint

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Free subway rides for the elderly becomes political flashpoint

Published: 12 Feb. 2023, 17:32

Elderlies enters a subway in Seoul. [YONHAP]

Local governments are trying to raise the age for free subway rides from 65 to 70, the first increase in 40 years.

The central government opposes the efforts.

Seoul Mayor Oh Se-hoon has been pushing for raising the age for free subway rides while asking the central government to cover the losses generated .

Oh on Thursday visited the National Assembly, where he asked for the support of the legislators in raising the age for free rides.

“We have arrived at the point where free ride has become a major burden,” Oh said when meeting with the head of the National Assembly’s Strategy and Finance Committee.

The Seoul mayor raised the issue first on Jan. 30 during his New Year’s press conference.

“For eight years we have not raised the fare,” Oh said. “Even if we raise the ticket 300 and 400 won, it will still be not enough to cover the costs of operating the trains.”

He said the city could only lower the increase on its subway ticket when the Finance Ministry provides financial support.

“We have reached our limits,” Oh said in a Facebook post last month. “If we were a private company, we would have already been bankrupt.”

Oh has asked for the support for the central government, stressing that public transportation costs have a big impact on average Korean’s life as much as heating costs, which has become a major issue this winter due to rising gas prices.

The Seoul city government said the local governments are bearing the burden caused by a policy implemented by the central government since the 1980s, and therefore the central government has to share the cost.

Seoul Mayor Oh Se-hoon, right, with People Power Party Yoon Young-seok on Thursday in rallying support from the legislators in Yeouido. [YONHAP]

Finance Minister Choo Kyung-ho has rejected the central government covering the losses stating that the issue is something that should be made by the local government on its own.

“It is logically wrong for a local government to request the central government to provide support by taking out loans,” Choo said. “Seoul is a city whose fiscal independence exceeds 80 percent. It doesn’t make sense for a local government that has the best financial situation to ask for help.”

Seoul Metro Corp. estimates last year’s net loss at 630 billion won, 315.2 billion won from free rides.

In 2019, losses generated from free rides were 63 percent of the total 586.5 billion won loss.

The situation is expected to get worse as the number of people 65 or older is expected to grow.

Last year for the first time those 65 years or older exceeded 9 million. By 2025, those 65 or older are expected to account for 20 percent of the entire population and 30 percent in 2035.

“While it is an issue that is up to the local governments, they need to be cautious.” said Cho Kyu-hong, health and welfare minister at the National Assembly on Friday.

The minister agreed that it is an issue that needs to be raised considering the low birth rate in the country and the aging population.

“But it needs to be careful as we are at the world’s top in terms of the poverty rate of elderly,” Cho said.

Daegu city government on Friday said it plans to raise the age of people riding free on subways starting next year.

Starting next year, those 66 and older will be allowed to ride subway for free, up from 65. It will eventually raise the threshold every year to reach 70 by 2028.

Daegu city plans to allow people 75 years old or older to ride buses for free starting July. That age barrier is expected to be lowered one year every year down to 70 by 2028.

The Daegu city government plans to get approval on the public transportation fare system from its local council next month.

“We have made a quick policy decision to reduce unnecessary social conflict,” said Mayor Hong Joon-pyo. “As it is a welfare policy with respect to the elderly, we will proceed with the policy with precision.”

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]