Commuters crowd Gwanghwamun Station in Jongno District, central Seoul, during rush hour on April 7.NEWS1
Seoul's subway system loses nearly 800 won (50 cents) on every passenger it carries, according to figures released Friday by Seoul Metro.
The company, operating subway lines 1 through 8, said the cost of transporting a passenger last year was 1,817 won, while the average fare paid was just 1,036 won — a gap driven in large part by free rides for seniors and disabled passengers and discounted bus transfers that the company provides without government compensation, its data showed.
The deficit varied by line and its ridership. Line 2, for instance, which runs a circular route through central Seoul and connects major business districts such as Gangnam and Jamsil with dense commercial and residential areas, had the lowest per-passenger cost at 1,374 won. Line 6, running in a U-shaped curve across northern Seoul, had the highest at 2,343 won.
Ironically, the deficit comes amid rising ridership on Seoul Metro's eight lines, which grew by 27 million passengers, or 1.6 percent, on year in 2025. The base fare was also raised by 150 won. The average fare actually collected by Seoul Metro, however, rose by only 38 won from the previous year's average of 998 won, reflecting the drag from free rides and discount programs. As a result, the share of transportation costs covered by fares stood at 57 percent, meaning passenger fares cover only about half of what it costs to move them. The recovery rate has trended upward over the past five years, but remains stuck below 60 percent.
Seoul Metro attributed the structural deficit primarily to public service obligations, such as free rides for senior citizens aged 65 and older and people with disabilities, and discounted transfers to buses. Last year, the company posted total revenue of 2.37 trillion won against total costs of nearly 3.2 trillion won, resulting in a net loss of 826.8 billion won. Public service expenditures came to 816.7 billion won over the same period, nearly equal to the net loss, suggesting that without those obligations, the company would have roughly broken even.
A passenger walks through a subway gate at a station in Seoul on June 12.NEWS1
Free-ride losses were the single largest component, accounting for more than half of all public service losses at 448.8 billion won. Bus transfer discounts added 290.7 billion won, followed by commuter pass discounts and other concessions at 77.2 billion won.
Free-ride losses have grown sharply, rising roughly 70 percent over five years from 264.3 billion won in 2020 to 448.8 billion won last year. Seoul Metro said it expects the losses to keep growing as Korea's population ages.
Among the six urban rail operators nationwide, including those in Busan, Daegu, and Incheon, Seoul Metro bears the largest free-ride burden. More than half of the 775.4 billion won in free-ride losses recorded across the country last year fell on Seoul. Yet Seoul Metro receives no government or municipal support for these costs and absorbs them entirely on its own. "We are pursuing self-help measures, including asset sales, new business ventures and labor cost reductions, but the structural deficit from free rides and other obligations has left us facing a fiscal wall," a company representative said.
Aging infrastructure is adding to the pressure. Seoul Metro plans to spend 700 billion to 900 billion won annually over the next five years replacing old rolling stock and upgrading facilities. Electricity costs have also surged 60 percent, or 100.5 billion won, compared to 2021, following seven rounds of rate increases since 2022.
"Free rides are a public service mandated by national policy, and the associated costs should therefore be shared at the national level," Han Young-hee, head of Seoul Metro's planning division, said. "Government support measures must be put in place promptly to ensure sustainable public transportation operations."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
