DAEGU < invest Korea

According to Yonhap News,

A typical day for 66-year-old Hwang Se-ja begins with riding a city train from her house in the small town of Yangpyeong, 45 kilometers outside of Seoul, to her daughter's house in the capital city's downtown to babysit her young grandchildren during the day.

The 80-minute trip -- which requires a ride on the Gyeongui–Jungang Line cutting through Gyeeonggi Province surrounding the capital city and a transfer to a underground subway line at the bustling Cheongnyangni Station in central Seoul -- is all free of charge, thanks to South Korea's mobility policy that offers free rides for all people aged 65 and older.

"I first felt a little ashamed of being officially labeled as a senior as I am perfectly able to pay around 5,000 won (US$3.89) for a round trip ... but now, I guess there is no reason for me not to enjoy this perk," Hwang said.

She is one of 9 million seniors out of the country's 51.6 million population who don't have to pay subway fares in Seoul and five major metropolitan cities -- Busan, Daegu, Incheon, Gwangju and Daejeon. The benefit also includes rides on trains that connect surrounding areas.

But the policy, first introduced back in 1984, is now one of the hotly debated issues in South Korea as the number of free riders has risen greatly over the decades in the fast-aging society to a level that critics say is no longer affordable.

Only 4 percent of the country's population was 65 years and older in 1984, but the proportion reached 17.5 percent this year, and is forecast to reach 30 percent in 2035 and 46.4 percent in 2070, according to data by the Statistics Korea.

It is not the first time that the 40-year-old policy has become the center of a heated debate.

Municipal governments have demanded the central government provide support to make up for their losses, claiming the influx of free riders is creating a massive financial burden.

Adding to the controversies, Seoul Mayor Oh Se-hoon has said his city government will discuss reforming the public transportation fare system, even including the possibility of cutting the benefit for the elderly.

Seoul Metro, the operator of the subway system in Seoul, suffered a net loss of around 1 trillion won annually since 2020, with an accumulated net loss posting a whopping 14 trillion won.

"The deficit in the urban railway operation due to free rides by the elderly population is expected to expand as we enter a super-aging society," said Shin Seong-il, a researcher at the Seoul Institute, a foundation under the Seoul metropolitan government.

n 2021, 257.4 million people took subway rides free of charge in the wider Seoul area, with around 80 percent of them estimated to be citizens aged 65 and older. That resulted in the losses of 378.4 billion won.

"Raising the minimum age that qualifies for free subway rides to 70 years is expected to result in a 25-34 percent reduction in losses," Shin said.

The southeastern city of Daegu also announced it will consider raising the minimum age eligible for free subway benefits from the current 65 to 70. Instead, the city government proposed expanding the free rides for buses.

Calls are made to revise what some call the "outdated" scheme created under the authoritarian regime of former President Chun Doo-hwan, to reflect changing demographics and worsening financial status.

"At the time (in 1984), the ratio of senior demographics was low and there were not that many metro lines," said a Seoul Metro official working at a Seoul subway station who asked not to be named. "I believe the deficit in reality will actually be much higher than the estimate as there are many seniors who do not tag their cards through ticket gates, thinking the ride is free any way."

The dispute is also a thorny issue for senior citizens whose life expectancy is getting longer.

"I do not agree with the saying that the seniors are the reason for the deficit," said Kim Ho-il, chief of the Korea Senior Citizens Association, during a debate held at the National Assembly, adding the scheme also keeps seniors more physically active in their everyday lives.

Kim cited several other possible causes, such as the increased number of total passengers, and the cost of repairs and maintenance of aging trains and systems.

The operating cost of Seoul Metro came to 2.64 trillion won in 2021, with 1.13 trillion won spent on personnel expenses and 173.2 billion won on the welfare benefits of employees.

Overhauling the senior welfare system can also be regarded as "rude" in the once deeply Confucian society, where the virtue of filial piety demands caring for elders.

Lee, a 78-year-old retired school teacher, said the policy should be maintained as a respect for the age group that spearheaded the development of Asia's fourth-largest economy that was once torn apart following the 1950-1953 Korean War.

"I have compassion for the deficit, but I am sure there are other ways to make up for it. The scheme is part of the country's unique senior welfare system that was enacted for a reason," Lee said while he was sitting on a priority seat reserved for elderly people on a Seoul Subway Line 1 train.

Not only President Yoon Suk Yeol but also previous administrations since the early 2010s had promised to improve fiscal health upon taking office but were always hesitant partly because elderly voters were a key support base.

Even among seniors, however, others voice the need to revise the policy as future generations should not be left to pick up the heavy burden.

"This is such a waste," said Kim Sang-cheol, a 67-year-old retired banker who lives a fairly affluent life in Seoul. He emphasized the benefit of free rides should be focused on people below the poverty line.

Senior couriers who completely rely on their free underground passes for their living should be a priority, Kim said. He also recommended a discounted rate in the form of vouchers or coupons for seniors depending on their income level.

They are also divided over the issue of the standard threshold for seniors.

"I do not understand why I am categorized as an old person as I still have my job and do not even have any grandchild," said 68-year-old Kim Ok-seon. She also emphasized the need to officially discuss criteria for the age at which people become senior citizens.

According to a recent survey conducted by the Seoul government, the average age of senior citizens perceived by Seoul's elderly was 7.6 years older than their official age of 65.

She also mentioned the issue of fairness, as elderly citizens living in rural areas mostly depend on buses for their mobility.

"It is time for politicians and government officials to step up and revise the policy without thinking about their political agendas and election results," she said.

khj@yna.co.kr

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Source: Yonhap News (Feb. 17, 2023)