Study puts benefit of free metro rides for seniors in Korea at 650.6 billion won a year
In short
A study released on 22 October by Seoul Metro puts the annual social benefit of free urban rail rides for older people at 650.6 billion won for 2025. The same study projects the combined net loss of six urban rail operators will rise from 1.4821 trillion won in 2025 to 3.1486 trillion won in 2050. It proposes shared funding, including national government support.
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Free urban rail rides for older people produce a social benefit of 650.6 billion won a year, according to a study whose results Seoul Metro announced on 22 October. The study, a research service on making the urban rail free-ride system sustainable, was jointly commissioned by six urban rail operators including Seoul and carried out by the Korean Society of Transportation (대한교통학회). Hankook Ilbo listed the operators as those of Seoul, Incheon, Busan, Daejeon, Daegu and Gwangju. [ 1 , 2 , 3 ]
The benefit figure is for 2025. The health category was the largest at 338.6 billion won, covering prevention of suicide and depression and fewer illnesses. Transport and environment accounted for 229.3 billion won, including lower vehicle operating costs and fewer traffic accidents, and the economic category, such as stronger spending in local commercial areas, for 82.7 billion won. Asia Economy said the suicide-prevention effect alone was estimated at 142.1 billion won. The study projects the total benefit will grow to 898.3 billion won in 2035 and 1.0598 trillion won in 2050 as the population ages. [ 1 , 2 , 3 ]
The study also projects worse finances for the operators. Their combined net loss is estimated at 1.4821 trillion won in 2025, 1.9139 trillion won in 2030 and 3.1486 trillion won in 2050. Hankook Ilbo noted that this is each operator's overall net loss and not only the loss from free rides. It reported that Seoul Metro's 2025 free-ride loss was 448.8 billion won, about 58% of the 775.4 billion won lost by the six operators. [ 1 , 2 , 3 ]
In a Korean Society of Transportation survey of 2,000 adults nationwide, 73.6% said the central government (41.7%) or local governments (31.9%) should mainly bear the cost, while 9% said the operators should. Asked about the system itself, 51.5% said it should be maintained and 24.4% said there is no need to maintain it. Newsis added that 24.1% answered neutral. [ 1 , 2 , 3 ]
The study cited France, Germany and the United Kingdom, where the state or local governments cover fare-reduction losses for transport welfare in full or share them. It also questioned the government's opposition to national funding on grounds of fairness with regions without urban rail, pointing to ministry-level transport welfare programmes already in place. Its proposals include an inter-ministry body centred on the transport and health ministries to set roles and cost-calculation standards, and raising the free-ride age from 65 to 70. [ 1 , 2 , 3 ]
The age change would have limited effect, the documents report. Under the current system Seoul Metro would reach full capital erosion in 2033, and with a free-ride age of 70 that would move to 2034. The study said age adjustment should go together with reform of funding sharing, including national support. Han Young-hee, head of Seoul Metro's planning headquarters, said Seoul Metro will seek to persuade the National Assembly and government of the need for change and widen consensus through public debate. [ 1 , 2 , 3 ]
Why it matters
The findings were presented by Seoul Metro, which said it plans to press the National Assembly and government for changes to how the free-ride system is funded. The survey cited in the study shows public support for the scheme is only just above half.
Key facts
- The study, a research service on making the urban rail free-ride system sustainable, was jointly commissioned by six urban rail operators including Seoul and carried out by the Korean Society of Transportation (대한교통학회). [ 1 , 2 , 3 ]
- It estimates the annual social benefit of free rides for older people at 650.6 billion won for 2025: 338.6 billion won in health, 229.3 billion won in transport and environment, and 82.7 billion won in economic benefit. [ 1 , 2 , 3 ]
- The benefit is projected to reach 898.3 billion won in 2035 and 1.0598 trillion won in 2050 as the population ages. [ 1 , 2 , 3 ]
- The combined net loss of the six operators is estimated at 1.4821 trillion won in 2025, 1.9139 trillion won in 2030 and 3.1486 trillion won in 2050. [ 1 , 2 , 3 ]
- In a survey of 2,000 adults, 73.6% said the central government (41.7%) or local governments (31.9%) should bear the cost, while 9% said the operators should. [ 1 , 2 , 3 ]
- Proposals include an inter-ministry body led by the transport and health ministries and raising the free-ride age from 65 to 70, with funding-sharing reform including national support. [ 1 , 2 , 3 ]
Confirmed by several sources
- Seoul Metro announced the study results on 22 October, with the final report meeting held that day. [ 1 , 2 , 3 ]
- The study estimates the social benefit of free rides for older people at 650.6 billion won a year for 2025. [ 1 , 2 , 3 ]
- The combined net loss of the six operators is projected to reach 3.1486 trillion won in 2050. [ 1 , 2 , 3 ]
- Raising the free-ride age to 70 is among the options, but the study says age alone cannot resolve the financial problem and funding-sharing reform including national support should go with it. [ 1 , 2 , 3 ]
- In the survey, 51.5% said the system should be maintained and 24.4% said there is no need to maintain it. [ 1 , 2 , 3 ]
Still unclear
- How much of the operators' projected net loss comes from free rides. Hankook Ilbo said the 1.4821 trillion won figure is the operators' total net loss, not only the free-ride loss; the other outlets do not make this distinction.
- Whether the government will change national funding for free rides. The documents report that the government has opposed national funding, citing fairness with regions without urban rail; the study questions that, but no government response is given.
- The effect of a higher free-ride age on operators' finances across the six operators. Newsis said capital erosion would be delayed by up to about two years depending on the operator, and only the Seoul figure (2033 to 2034) is given.
What local media are saying
Timeline, local time
- Asia Economy published its report on the study, saying Seoul Metro would present the results on 22 October. [ 1 ]
- Newsis published its report, saying the results would be presented at the final report meeting held by Seoul Metro that day. [ 2 ]
- Hankook Ilbo published its report on the released study results. [ 3 ]