By Lee Hyo-sik
The cumulative losses at subways due to elderly passengers riding for free over the past five years has reached 1.6 trillion won ($1.45 billion) for Seoul Metro and other subway operators across the nation.
According to the Ministry of Public Administration and Security, Wednesday, the amount of fares exempted for senior citizens at seven subway operators in Seoul and other metropolitan cities reached 343 billion won in 2010, compared with 337.3 billion won in 2009.
The lost revenue at Seoul Metro, the operator of the subway line Nos. 1-4, reached 139 billion won, while Seoul Metropolitan Rapid Transit, which manages the subway line Nos. 5-8, suffered an 84 billion won loss.
About 12.6 percent of subway passengers on lines operated by Seoul Metro were senior citizens, while those aged over 65 accounted for 13.5 percent of subway users on Seoul Metropolitan Rapid Transit lines.
Gwangju Metropolitan Rapid Transit Corp. recorded a ratio of 31.6 percent, the highest among subway operators.
In 2010, Seoul Metro recorded 257 billion won in the red, followed by 222 billion won at Seoul Metropolitan Rapid Transit.
``The number of subway users paying fares will decline in the future amid the rapid population aging and low birthrate. Without government help, we will continue to struggle with chronic deficits,’’ said Seoul Metro spokesman Lee Sang-ki said.
Lee said Seoul Metro and other subway operators in provincial cities do not receive any financial subsidies from central or municipal governments. ``Under the current system, the financial soundness of the subway operators will further deteriorate. Fortunately, Seoul City has realized the gravity of the situation. We really hope that there will be tangible support measures for subway operators,’’ the spokesman said.
This is unlikely as Seoul City and the central government are shackled by budget shortages. Nor, will fear of a strong backlash allow for a raise in the age limit for the senior pass program.
In October 2010, Prime Minister Kim Hwang-sik’s criticism of giving free subway tickets to the elderly was not taken lightly by senior groups.
He said it was not proper to give the benefit to all of them, regardless of their wealth, implying there would be a cut in the number of seniors who can ride the subway for free.
But he soon retracted his remarks after facing opposition from advocacy groups for senior citizens.
Subway managers are expected to incur larger lost revenues as a result of the senior pass card program in the coming years from the rapid population aging. When the program was first introduced in the early 1980s, people over 65 took up only 3.9 percent of the population, but they accounted for 10.7 percent in 2010. Numbers are forecast to reach 15.1 percent in 2020.