Aging Population Drives Seoul Metro Deficit; Free Ride Losses Surge 70% in 5 Years

The deficit of Seoul Metro has significantly widened due to rising costs, including those for free transportation services driven by an aging population.

According to Seoul Metro, the corporation's net loss reached 826.8 billion won last year, a 14.2% increase from the previous year (724.1 billion won).

This deficit is nearly equivalent to the 816.7 billion won the corporation spent on public service obligations last year.

Last year, the corporation spent 448.8 billion won on free rides for seniors and others, while also covering costs for bus transfers (290.7 billion won) and support for commuter passes (77.2 billion won) as part of its public service expenses.

In particular, losses from free rides have increased every year from 264.3 billion won in 2020, marking a rise of approximately 70% over the past five years.

The corporation expects the scale of losses from free transportation to continue expanding as the population ages rapidly.

Seoul Metro's losses from free rides were the largest among the six urban railway operating agencies nationwide.

Last year, the total loss from free rides for all six agencies amounted to 775.4 billion won, with Seoul Metro accounting for more than half of that figure.

Unlike other operating agencies, Seoul Metro bears the entire cost of losses from free rides without support from the central or local government, leading to a heavy financial burden.

Meanwhile, the cost of transporting one passenger on Seoul Subway lines 1–8 last year was 1,817 won, while the average fare received was only 1,036 won, resulting in a loss of 781 won per passenger.

The transport cost per passenger last year, which includes labor costs, depreciation, and utility expenses such as electricity, was 1,817 won.

By line, Line 2 had the lowest transport cost at 1,374 won, while Line 6 had the highest at 2,343 won.

The average fare per passenger was 1,036 won. The corporation explained that despite a 1.6% increase in ridership and a 150-won fare hike compared to the previous year, the average fare only rose slightly by 38 won, which was insufficient to bridge the gap with transport costs.

The cost recovery rate per passenger stands at 57%, meaning passenger fares only cover about half of the transportation costs.

The corporation's cost recovery rate has been stuck in the 50% range over the past five years, recorded at 50.2% in 2021, 53.3% in 2022, 54.7% in 2023, and 53.9% in 2024.

Han Young-hee, Head of the Planning Division at Seoul Metro, emphasized, "As free transportation is a public service implemented as a national policy, a responsible approach at the national level is required regarding the resulting social costs," adding, "Government support measures for losses from free rides must be prepared as soon as possible."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.