Free Rides for the Elderly is Causing Seoul Subway to Increase Prices

It is surprising how many elderly people ride the subway and the financial burden it is putting on the Seoul subway system:

The free subway fare for senior citizens, which was introduced in 1984, is one of the rare perks only seniors can enjoy in this aging society. It helps reduce rates of suicide and depression, as well as medical fees by keeping senior citizens active, according to the Korea Transport Institution’s research in 2015. 

However, transporting elderly riders for free doesn’t give only advantages.

It has recently emerged as a headache for heads of big city governments, especially Seoul where most of the nation’s population is concentrated, as the deficits of Seoul Metro are snowballing to a dangerous new level.

“Since the start of the COVID-19 pandemic, Seoul Metro has faced a deficit of 1 trillion won ($ 8.1 billion) annually, and the seniors’ free rides account for 30 percent of the deficit. Before COVID-19 it took 60 percent,” Seoul Mayor Oh Se-hoon wrote on Facebook, Tuesday. “In the meantime, Seoul Metro has endured by issuing corporate bonds, but now it has reached its upper limit. If it was a private company, it would have already gone bankrupt.”

Korea Times

You can read more at the link, but the Seoul government wants the national government to kick in money to support the subway system to prevent prices from going up even further.