[473 Social] Endless Deficits, Confronting the Unstable Future of Free Ride

2025-09-22     Lee Jae-won
The subway fare was recently increased to 1,550 won due to ongoing deficits. /Photography by Lee Jae-won

   Since the 1984 revision of the Enforcement Decree of the Welfare of Senior Citizens Act, South Korea’s metropolitan subways began offering free rides to seniors aged 65 and older. It has long been regarded as an emblematic place of “senior privilege.” However, nearly 40 years after its implementation, the policy now confronts a fundamental question of sustainability amid rapid demographic shifts brought by low birthrates and an aging society. The mounting deficits of subway operators are increasingly shifted onto the public, making this not merely a matter of “welfare,” but a complex social problem.

The shadow of an aging society, the endless cycle of deficits

   According to Statistics Korea, as of 2024, seniors aged 65 and older comprise 19.2% of the total population, and by 2025, the figure is expected to surpass 20%, making the country’s transition to a super-aged society. This surge in the elderly population has continuously expanded the financial losses stemming from free subway rides. For instance, the Seoul Metro reported losses of 366.3 billion won in 2023 and approximately 413.5 billion won in 2024 due to senior free rides, with the trend worsening each year. The problem is that despite repeated fare hikes, the deficit has not narrowed. Seoul’s base subway fare was raised from 1,250 won to 1,400 won in October 2023, and again to 1,550 won in June 2025. Still the corporation’s net loss in 2024 exceeded 690 billion won. In effect, while the free ride policy provides benefits concentrated in one generation, the growing elderly population has resulted in the economic burden being directly shifted onto the youth and the general public.

Unequal rides, Seoul’s senior free ride policy under controversy

   A survey conducted during the “Seoul City Subway Senior Free Ride Policy Forum” in 2025 revealed that 6 out of 10 respondents supported raising the free ride eligibility age, with 70 being the most frequently suggested threshold. Among respondents, those in their 50s accounted for 18.4%, while those in their 30s made up 17.7%. Those in their 20s and 60s each represented 16.3%, followed by respondents in their 70s at 9.4% and those aged 80 or older at 4.8%. The primary reasons for supporting an age increase were “heavier burdens on future generations” (39%), “changing social perceptions” (37%), and “inequality with seniors in cities without subways” (24%). Moreover, 71% of respondents said that setting the definition of “senior” at 70 or above would be more appropriate.

   The numbers further underline the need for reform. Between January 1st and January 25th, 2023, a total of 14.68 million seniors aged 65 and older used subway lines 1 to 8 in Seoul, an increase of 750,000 compared to the same period in the previous year. During heat waves, many seniors ride subways to save on electricity bills at home, giving rise to the expression “subway summering.” This has led to congestion and disputes during rush hours when seniors occupy seats or space, causing inconvenience to commuters. Meanwhile, political efforts toward reform have been cautious, with some observers noting that the significant presence of senior voters benefiting from the systems makes change more complex.

   The free ride system also exposes regional disparities. Seniors in the metropolitan area benefit from the daily convenience of free subway rides, while those in rural areas without subways do not enjoy equivalent privileges on buses or other forms of transport. Although the law applies nationwide, uneven implementation has raised doubts about how effective it is as a universal welfare program.

Sustainable alternatives abroad and South Korea’s path forward

   Other countries have taken different approaches to senior transit welfare, prioritizing sustainability and equity over unconditional free rides. In Japan, there is no nationwide free ride policy; instead, local governments run their own senior pass programs. For example, Osaka City offers the “Keiro Pass” to seniors aged 70 and above, allowing them to use subways and buses at 50 yen per ride. This model emphasizes affordability but requires a modest personal contribution. Berlin also does not provide free transit. Instead, it offers discounted passes such as the “Berlin-Ticket S” for low-income residents (19 euros per month) and the “VBB-Abo 65plus” for seniors aged 65 and above (62 euros per month). This system strikes a balance between social fairness and fiscal sustainability. London operates the “Freedom Pass,” granting free public transport to citizens over 60, but with restrictions during weekday peak hours, 4:30 A.M. to 9 A.M. Seniors must pay fares during these times but can ride for free afterward and on weekends. This system addresses both traffic congestion and welfare needs.

   South Korea can draw insights from lessons from these international cases. Suggested reforms include raising the eligibility age, applying means-tested benefits, clarifying cost-sharing responsibilities between central and local governments, and establishing a clear legal basis for compensating transit operators. The focus should move beyond stopgap fare subsidies to a comprehensive approach that both guarantees seniors’ mobility rights and ensures the system’s long-term sustainability.

 

   Ultimately, the free ride policy is not simply about “whether seniors should ride for free,” but about how welfare systems can adapt amid demographic transformation, balancing generational fairness and regional equity. A policy that once functioned as a strong social safety net 40 years ago now faces new challenges: a growing elderly population and rising burdens on younger generations. Reform should not mean outright benefit cuts, but rather aim to preserve seniors’ mobility and dignity while easing the strain on younger citizens. The debate on free rides reflects broader societal shifts, digital transformation, aging, and regional disparities. Ensuring that no one is excluded requires intergenerational dialogue, clear policy roadmaps, and political leadership. Only through collective action and balanced reform can South Korea move toward a more equitable and sustainable welfare society.