By Lee Hyo-sik

The central government has put the brakes on Seoul City’s move to raise bus and subway fares by 150 won ($0.13) in February, citing government-wide efforts to help curb surging consumer prices.

The Ministry of Public Administration and Security urged the Seoul Metropolitan Government Sunday to push back the hike plan to the latter half of the year.

The ministry said it is inevitable for bus and subway fares to be raised as public transit operators have been suffering steep losses. However, an increase in charges at the beginning of the year could negatively affect government efforts to rein in inflation and encourage other municipalities to follow suit, it said.

According to Statistics Korea, consumer prices rose 4 percent in 2011, well above the Bank of Korea’s target of 3.5 percent, due to soaring prices of crude oil and agricultural products.

“President Lee Myung-bak has pledged to spare no efforts to tame inflation in 2012. But if Seoul City raises bus and subway fares as soon as the Lunar New Year is over, it is expected to prompt other municipal administrations to do the same,” a ministry official said. “We expect Seoul Mayor Park Won-soon to take appropriate measures to help improve the livelihoods of low-income families when he returns from vacation.”

On Jan. 25, the Seoul Metropolitan Government announced a plan to increase public transportation fares by 150 won next month to make up for rising deficits from transfer fee discounts and high fuel costs. It seeks to raise basic subway journeys to 1,050 won from the current 900 won. Fares for inter-city fares will be hiked to 1,850 won from the current 1,700 won. The city proposed the increase in public transportation fees in November last year.

If realized, it would be the first time in nearly five years for Seoul to up public transport fees.

Over the years, companies operating the nine metropolitan subway lines connecting Seoul and cities in Gyeonggi Province have recorded hundreds of billions of won in deficits each year. It is not much different for city bus operators.

In September last year, Seoul City, headed by former Mayor Oh Se-hoon, sought to raise bus and subway fares by 200 won but it was forced to retract the plan, due to strong public opposition.