By Kim Rahn
Staff Reporter

Taxi fares in Seoul are likely to go up by 10 percent next year, while bus and subway rates will be held steady.

Seoul Mayor Oh Se-hoon said in an interview Sunday that the city is considering raising the fare, which has remained the same for the last three and a half years.

``We have not decided how much to raise it. But a large increase, as taxi operators demand, will see citizens not use taxis,'' Oh said, indicating a small rise was on the horizon.

Taxi operators demanded a 35 to 40 percent rise, while the city proposed 10 percent. Currently, the base rate for two kilometers is 1,900 won, a 17.5 percent rise from June 2005. The fare has not increased since then.

For rates of bus and subways, Oh said they are ``basic public'' transportation systems and the city will not increase the fares next year because it will aggravate citizens' financial difficulties. The base rate for buses and subways already rose in April 2007 to 1,000 won from 900 won when paying in cash.

He said water, gas and other public services fees will also remain the same.

The mayor said the city has allotted more to welfare for next year than this year, 3.7 trillion won or 22.7 percent of its total budget. The money will be spent on helping children, women, the elderly, the disabled and the poor.

To stimulate the economy and create jobs, Oh said he will promote construction projects. ``Half of the buildings in Seoul, except apartments, are over 20 years old. Building renovation can be a good construction stimulant,'' he said.

To that extent, the city will provide incentives for buildings that will undergo remodeling in a more energy-saving way. The city also aims to create 200,000 jobs via various projects.

rahnita@koreatimes.co.kr