Taxi fare hike may push up other transportation prices

A long line of taxis awaits customers in Seoul, Wednesday. Taxi prices are set to go up for the first time since 2013, from 3,000 won to 3,800 won, starting 4 a.m., Feb. 16. / Yonhap

By Kim Hyun-bin

A planned taxi fare hike in Seoul is feared to trigger a domino effect on other public transportation fees in the capital and its surrounding areas.

According to the Seoul Metropolitan Government Sunday, the base rate for taxis will increase to 3,800 won ($3.38) from 3,000 won, effective 4 a.m., Saturday ― the first increase since October 2013.

In addition, the late night basic fare will also increase by 1,000 won to 4,600 won.

Experts believe the move in the capital will inevitably lead to an increase in both bus and subway fares in Seoul as well as Gyeonggi Province and Incheon.

The three metropolitan councils recently held working-level talks and agreed to hike bus fares by a maximum of 300 won, while a 200 won hike was discussed for subway fares.

Current bus fares are 1,200 won in the capital, ans 1,250 won in Gyeonggi and Incheon.

Since 2007, the three metropolitan councils have allowed free transfers from buses to subways and vice versa, while simultaneously increasing bus and subway fares.

“Should either of them raise fares, it could cause a problem,” said an official of the Seoul city government.

The cost of taking the bus has generally been increased every three years, but, fares have been frozen since June 2015.

“There is a need for the fare hike as the last increase was four years ago. However, we also need to take a comprehensive approach as the rise could become a burden to the public and have an effect on other prices,” the official added.

According to the local government, nothing has been decided on at the moment.

The Seoul Metro recently released its 2017 to 2021 financial management report, which stressed the need for a hike in the subway fare of 200 won this year and in 2021 to better counter continuous deficits that have been piling up each year.

The basic subway rate for adults currently stands at 1,250 won, however, welfare policies such as free transportation for those over 65 have caused a deficit of around 50 billion won each year.

On the other hand, Seoul City has asked the four operators of airport “limousine buses” to reduce their prices by 10 percent. Currently, they charge 15,000 won to 16,000 won per passenger.

Since September last year, the city government has been working to reduce the airport shuttle bus fares after receiving hundreds of complaints regarding the high cost.