Seoul mayor asks planning minister to expand state funding for aging infrastructure

Seoul Mayor Oh Se-hoon has called for expanded state funding to overhaul the city's deteriorating infrastructure, citing the enormous costs involved. He also raised concerns about a differential subsidy system that he said works unfairly against Seoul.

Oh met with Minister of Planning and Budget Park Hong-keun at the Korea Public Finance Information Service on Friday morning, outlining the severity of Seoul's aging infrastructure and requesting national-level reinvestment and state funding to address it.

Much of Seoul's infrastructure was built during the rapid growth period of the 1970s and 1980s, and about 58 percent of the city's roads, bridges and other facilities are now more than 30 years old. Among the major Class 1 and Class 2 facilities managed by the Seoul Metropolitan Government, the share of aging structures — those over 30 years old — is the highest of any local government in the country. As deterioration accelerates across the board, performance upgrades and maintenance costs are rising sharply, but the city says it cannot manage the burden on its own revenue alone.

Some 71.7 percent of electrical facilities on subway lines 5 through 8 have received a D rating due to aging. Seoul Metro, which operates the lines, has accumulated deficits of 19.9 trillion won ($13.5 billion) driven in part by free-ride policies, making it difficult to fund repairs from its own resources.

Aging sewer pipes — widely identified as a leading cause of ground subsidence — are also a pressing concern: 6,309 kilometers, or 58 percent of the city's total 10,884-kilometer network, have been in the ground for more than 30 years. Over the past five years, Seoul has invested more than 200 billion won annually from its own budget to rehabilitate about 100 kilometers of aging pipes each year. But roughly 150 kilometers of additional pipes cross the 30-year threshold each year, meaning rehabilitation cannot keep pace with aging. Other local governments receive state funding for sewer rehabilitation projects; Seoul alone is excluded.

According to the city, the fiscal strain from aging infrastructure is compounding an existing inequity: Seoul is subject to a differential national subsidy rate for universal welfare programs — those designed to guarantee a basic standard of living for all citizens — that is less favorable than the rates applied to other cities and provinces. As a result, Seoul bears an additional 3.45 trillion won per year in social welfare program costs compared with other local governments. When all programs are included, the additional burden rises to 3.57 trillion won.

The city also cited a recurring pattern in which the central government designs policy programs and delegates administrative responsibilities to Seoul without providing adequate funding or staffing. A recent example involves labor inspection duties transferred to local governments: other cities and provinces are set to receive personnel cost support through general grants, but Seoul — which does not receive such grants — must cover all related personnel costs from its own budget. When the system takes full effect in 2031, the city expects an additional annual fiscal burden of about 25.7 billion won.

"Seoul's infrastructure is the core backbone supporting the national economy and the daily lives of citizens," Oh said. "Aging infrastructure must be reinvested in at the right time, before risks become reality. The central government's resolve and active fiscal support are essential to securing public safety and the city's competitiveness." He added that "the principle must be that the state takes responsibility for nationwide, universal welfare programs and for duties it has delegated to local governments," and called on the government to "stop the unreasonable transfer of costs onto Seoul and strengthen the state's fiscal accountability."