Subway operators to take senior citizens' perk to court

By Kim Bo-eun

Sixteen operators of nationwide railroads plan to file a constitutional appeal over the government’s welfare policy allowing senior citizens aged 65 and over to ride subways free of charge.

The operators say the rising percentage of senior citizens amid Korea’s aging society is generating huge losses for them, and claim the it goes against the Constitution for the government not to make up for its losses.

The operators discussed the issue at a meeting convened Monday.

“Free access to subways is part of universal welfare provided by the central government, yet it is imposing on us a burden, which exceeds operators’ capacity,” Seoul Metropolitan Rapid Transit Corp. CEO Na Yeol said.

“We will submit an appeal to the Constitutional Court during the first half of the year on the grounds that this goes against property rights and the principle of equality.”

Besides senior citizens, the government also allows designated veterans and patriots to travel on subways free of cost.

Data showed citizens with free access to subways accounted for 17 percent of total passengers (396 million) on seven rail services in 2015. This amounts to 494 billion won in losses.

Subway operators argue the government not providing them subsidies for losses incurred from a state welfare policy goes against their property rights.

In contrast, the state-run Korail, unlike other local government-run corporations, is being subsidized for around 70 percent of the losses it suffers due to free passengers. Other operators claim this goes against the principal of equality.

However, the government says it is up to local authorities to cover losses of local government-run rail services with their own budgets.

But the operators claim the losses have exceeded levels they can cover, and this is making it difficult to draw up budgets to improve old facilities ― which affects safety.

The controversy has been ongoing for two decades, but it is the first time railroad operators will take the issue to court.

Based on data from Statistics Korea, the percentage of the population aged 65 and above will continue to grow, to 15.7 percent in 2020, 24.3 percent in 2030 and 32.3 percent in 2040, which will pose an enormous burden on operators if the government does not take any measures.