Seoul, South Korea – Seoul’s subway fares are set to increase by 150 won in March, as the city grapples with the growing financial burden of operating its extensive public transportation system. The decision, made by the Seoul Metropolitan Government, Gyeonggi Province, Incheon Metropolitan City, and Korea Railroad Corporation (Korail), aims to alleviate the chronic deficits faced by the Seoul Metropolitan Rapid Transit Corporation (SMRTC).
The fare hike will raise the base fare from 1,400 won to 1,550 won. This marks the second increase in a year, following a previous hike of 150 won in October 2023. The city had initially planned a larger fare increase to align with bus fares but postponed it due to the South Korean government's request to stabilize public prices.
The SMRTC has been struggling with significant financial losses for years, primarily due to the rising costs of operation and the increasing number of elderly passengers who ride for free. The company's accumulated deficit has reached a staggering 7.3 trillion won.
Despite the fare increase, the SMRTC is still expected to operate at a loss. To address this ongoing issue, the Seoul Metropolitan Government has pledged to provide additional financial support. Furthermore, the city plans to expand the use of climate action cards, which offer discounted fares to encourage sustainable transportation, and will share the increased operational costs associated with this initiative.
Seoul Mayor Oh Se Hoon emphasized the importance of maintaining the city's public transportation system while acknowledging the burden placed on commuters. "We understand that any fare increase will be difficult for residents, but it is necessary to ensure the long-term sustainability of our subway system," Mayor Oh said.
The fare hike is expected to generate an additional 164.1 billion won in annual revenue for the SMRTC. However, experts caution that this may not be enough to fully address the company's financial challenges.
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