Seoul city council paves way for bus fare subsidies for riders aged 70 and older

The Seoul Metropolitan Government secured a legal basis to subsidize bus fares for residents aged 70 and older during a plenary session on Wednesday.

The city council passed an ordinance that allows the city to cover all or part of the transportation costs for buses for older adults who are registered as Seoul residents and meet eligibility criteria set by the mayor. The subsidies can reportedly take effect as early as next year.

"The specific eligibility criteria and support method have not yet been finalized," an official from the Seoul metropolitan government said.

The bill, proposed by city council member Lee Byung-yoon, was approved with 69 votes in favor, one against and five abstentions among the 75 council members present.

The transportation subsidy program was one of Seoul Mayor Oh Se-hoon's campaign pledges.

The city is reviewing a plan to limit the number of subsidized rides per month, with city officials reportedly discussing a maximum of 14.

The city plans to work out the details to maximize the program's effectiveness while avoiding overlap with existing transportation subsidy programs, including the government's K-Pass program, which reimburses a portion of transportation expenses for users who take buses at least 15 times a month.

Securing funding for the initiative is tied to a possible overhaul of the subway's free-ride program for seniors.

The city plans to fund the bus fare subsidy program with savings generated by raising the eligibility age for free subway rides from 65 to 70. Free subway rides for older adults cost the city about 380 billion won ($246 million) last year. City officials estimate that increasing the eligibility age to 70 would reduce those costs by roughly 115 billion won annually.

The annual budget required to subsidize up to 14 bus rides per month for residents aged 70 and older is estimated at 52.5 billion won. The amount is roughly half of what the city council had expected.

The proposed bus subsidy and the plan to raise the age threshold for free subway rides are part of a broader debate over how society should redefine what age constitutes “older citizens” in an aging population.

The city government plans to hold a public hearing with the Korean Senior Citizens Association in early July to discuss raising the eligibility age for free subway rides.

The Seoul chapter of the association recently sent an official letter to the city proposing that any increase in the age threshold for free subway transportation be considered alongside the introduction of bus fare subsidies, with the program's financial sustainability in mind.

“[The measures] could be implemented as early as next year if a social consensus is reached on both senior bus fare subsidies and raising the eligibility age for free subway rides,” said a city official. "The issue is likely to remain high on the agenda of the next city administration.”

BY  KIM MIN-WOOK [[email protected]]