Six urban rail operators urge state to cover free-ride losses

Incheon Transit Corp. and five other urban rail operators across the country urged the national government Monday to share the cost of free-ride losses that are growing as South Korea's population ages.

The six operators reported combined free-ride losses of 775.4 billion won ($572 million) last year.

Incheon Transit Corp. joined operators from Seoul, Busan and three other cities to meet with Democratic Party of Korea Floor Leader Han Byung-do on Monday, calling for legislation to require the national government to fund free-ride losses on urban rail systems.

The six agencies adopted a joint petition that day, calling for legislation to require the national government to cover free-ride losses, the establishment of a cost-sharing framework among the central government, local governments and operators, and institutional support to ensure the sustainable operation of urban rail systems.

Free rides on urban rail are a legally mandated welfare benefit extended to senior citizens, people with disabilities and veterans.

The operators say financial strain is mounting because the number of free riders is rising alongside the aging population, yet the costs are borne almost entirely by the rail operators and local governments.

Free riders accounted for 21 percent of all passengers on the six networks last year, when combined losses from the benefit reached 775.4 billion won.

The operators said that because free rides are required by national law, the costs should not be passed on solely to local governments and the operators themselves.

They said the urgency of securing stable funding is particularly acute given that an aging population will only expand the scale of free rides and deepen the fiscal burden over time.

In response, labor and management representatives from the operators asked Han to push for the swift passage of relevant legislative amendments and for national-level fiscal support.

The operators also said free rides deliver broad social benefits beyond a simple operating cost — guaranteeing mobility for the elderly and people with limited transportation access, and reducing traffic congestion and pollution by cutting private car use.

"Free rides are an important transportation welfare system that guarantees the public's right to mobility," said Choe Jeong-gyu, president of Incheon Transit Corp. "There are limits to how long operators can sustain this on their own fiscal resources."

He added that "a rational cost-sharing framework involving the central government, local governments and operators must be established," and urged that "national funding for free-ride losses be institutionalized as soon as possible."

The urban rail operators said they plan to continue raising the issue jointly and to push for improvements to the related legal framework.