Seoul seeks W8.1b subsidy to cover Han River bus operating losses

The Seoul Metropolitan Government has applied for approximately 8.1 billion won ($6.05 million) in subsidies to cover operating losses incurred by the Han River bus service. The city noted, however, that the subsidy calculation differs from the quasi-public system used for city buses, and that the final amount could be adjusted depending on the profit margin applied.

According to a Han River bus operating-loss subsidy application that Seoul submitted to Democratic Party of Korea lawmaker Yang Bu-nam at Thursday's national audit by the National Assembly's Public Administration and Security Committee, the total subsidy requested for 2024 and 2025 came to 8.12 billion won. Specifically, operating losses of about 1 billion won were recorded in 2024, while losses of approximately 7 billion won were incurred in 2025, the first full year of regular service.

The city said the figures were calculated "with a profit margin of zero percent applied," adding that the margin "will be finalized later by a review committee based on the criteria used to calculate operating revenue and expenditure."

According to the city, applying a 5 percent profit margin would raise the subsidy to 8.5 billion won, while a 10 percent margin would push it to 8.9 billion won.

Audit records for Han River Bus Co. show the company recorded no transport revenue in 2024 but spent 1 billion won on expenditures. After launching regular service in 2025, it generated about 200 million won in transport revenue. However, operating costs — including vessel depreciation, ferry terminal depreciation, labor and maintenance — totaled 7.2 billion won.

During the same period, the company brought in approximately 6 billion won from ancillary businesses. A breakdown of 2025 revenue shows convenience store sales accounted for 2.9 billion won and restaurant sales for 1.2 billion won.

Seoul also submitted to Yang a reference document on profit margin estimates compiled by Han River Bus Co.

The city said it provided the document because, according to the National Tax Service, the average profit margin for "land transport and pipeline transport" — covering buses and subways — is 5 percent under the simplified standard expense ratio, while water transport services such as the Han River bus carry an average margin of 10 percent.

The city explained that city bus subsidies under the quasi-public system cover all costs by adding a margin to operating expenses, whereas the Han River bus subsidy is calculated by deducting only operating revenue from the profit figure. "The subsidy structures for city buses and the Han River bus are different," it said.

The Han River bus, which launched its inaugural service in September last year, surpassed 700,000 cumulative passengers within its first year of operation. In September, it carried a total of 115,387 passengers — the first time monthly ridership exceeded 100,000.