Seoul and major cities set to raise public transportation fares

[Photo by Yonhap]

South Korea’s local governments, including the Seoul Metropolitan Government, plan to raise subway and public bus fares as early as in January, raising concerns that this would fuel inflation, which is projected to surpass 5 percent early next year.

Seoul announced on Thursday that it would raise subway and public bus fares by 300 won ($0.24) late April or early May to 1,550 won and 1,500 won, respectively. It decided to raise the fees after the National Assembly on Saturday failed to allocate a budget for public service obligation (PSO) compensation to make up for the deficit caused by the free subway use for those aged 65 and older and people with disabilities.

This is the first time in almost eight years public transportation fees will be increased in the capital city. Seoul Metro, the city-owned transportation operator, has posted a loss of 1.2 trillion won every year.

Other local governments are set to raise public transportation fares. Gangwon province will raise bus fares by 21.43 percent to 1,700 won in January. Daegu is also considering fare hikes after a freeze for six years. Busan and Ulsan local governments may follow suit amid energy price hikes.