(Seoul = Yonhap News) Reporter Kim Jun-tae = The Seoul Village Bus Transportation Association argued on the 7th that the village bus industry has reached its limit due to a long-term fare freeze, rising transportation costs, and accumulated transfer losses, and that a fare increase is necessary starting next year.
On the 19th of last month, the union officially proposed an increase in the current village bus fare of 1,200 won to the Seoul Metropolitan Government, and announced that it plans to hold a vehicle protest in the area of the city council and Seoul City Hall from the 9th to the 11th.
According to the union, Seoul village bus fares increased from 500 won in 2004 to 600 won in 2007, 750 won in 2012, and 900 won in 2015, and were then frozen for eight years before being raised to 1,200 won in 2023.
The union claimed that compared to Gyeonggi-do (1,650 won), Busan (1,480 won), and Daejeon (1,350 won), Seoul's village bus fare is the lowest in the country.
Meanwhile, transportation costs, including driver wages, fuel costs, vehicle prices, and maintenance costs, continued to rise.
In addition, village buses are said to operate in traffic-vulnerable areas such as alleys and hills, and travel relatively short routes, making them less profitable.
In addition, the proportion of transfer passengers among village bus passengers is about 60%, which is more than that of single-use passengers, but according to the integrated transfer fare distribution structure, the transfer income that village buses actually receive is said to be around 41.9% of the total income.
Based on the current fare (1,200 won), the amount distributed to village buses is only about 600 won, so the union explains that the more transfer passengers it receives, the more it loses.
To check citizens' perceptions, the union conducted an online survey targeting 1,013 Seoul citizens from July 21st to 27th.
As a result, 81.5% of survey participants answered that Seoul village bus fares need to be increased compared to other cities and provinces, and 58.9% said that the city of Seoul should support 100% of the losses arising from transfers.
Regarding the appropriate level of fare, the highest response at 43% was 1,500 won. 1,050 won was followed by 24.5%, and 1,700 won was followed by 10.5%.
In addition, the union added that in a specialized service related to fare increases, it was calculated that a fare increase of at least 890 won was necessary for the stable operation of village buses.
Kim Yong-seung, chairman of the Seoul Village Bus Transportation Association, said, “The current village bus fares are too far from reality considering the prices and wage levels in Seoul,” and added, “The city of Seoul and the Seoul City Council must take seriously the fact that 81.5% of citizens agreed on the need for a fare increase in the survey.”
At the same time, he said, "We are not asking to increase the profits of transportation companies, but to create a foundation for better services such as improving the treatment of drivers, reducing dispatch intervals, and replacing old vehicles," and urged, "Please make a decision to finalize the necessary procedures for raising village bus fares within this year so that realistic fares can be applied starting next year."
