🚨 Transit Transfer System Withdrawal

Today Korean Social News for Beginners | 2025.09.23

0️⃣ Village Bus Transfer Discount Ends, Citizens Face Higher Transport Costs

📌 Seoul Village Bus Association Announces "Transfer System Withdrawal"…Citizens Worry About Higher Transport Costs

💬 Seoul's Village Bus Transport Business Association announced they will withdraw from the transfer discount system starting next January. The association claims they only receive half of passenger fares due to the transfer structure, causing continuous losses, and Seoul City does not provide enough compensation. However, Seoul City argues they have more than doubled their support over the past 5 years and points to accounting problems and low operation rates, saying withdrawal would only inconvenience citizens. If withdrawal becomes reality, citizens will face additional fare costs when transferring to village buses. This has become an important social issue directly affecting citizens' daily transportation costs, going beyond just industry conflicts.

💡 Summary

• Transit transfer system withdrawal means specific transport unions leaving the public transport transfer discount system.
• Seoul's village bus association announced withdrawal from the transfer system starting January 2025.
• If withdrawal happens, citizens will lose transfer discounts when using village buses, increasing their costs.

1️⃣ Definition

Transit Transfer System Withdrawal means when specific transport unions or routes leave the public transport transfer discount system, making passengers unable to receive fare discounts when transferring to other transportation modes. Currently, Seoul operates an integrated fare system where transfers between subway, city buses, and village buses within a certain time period require no additional fees or offer discounted rates.

The transfer system is a policy designed to reduce citizens' economic burden when using multiple transportation modes and encourage public transport use. If specific transportation modes withdraw from this system, passengers must pay separate fares when using those transportation modes, increasing citizens' transport costs.

💡 Why is this important?

• It directly affects citizens' daily transportation costs.
• It shakes the foundation of integrated public transport policy.
• It can create bigger burdens especially for transportation-disadvantaged people and low-income groups.
• It affects the efficiency of Seoul's entire public transport system.

2️⃣ Current Transfer System and Background of the Conflict

📕 Seoul's Transfer System Operation Structure

• The transfer system has been operating since 2004. Main features include:

  • Seoul City, Bus Transport Business Association, and Village Bus Transport Association signed a transfer agreement.
  • Transfers within 30 minutes require no additional fees.
  • Free transfers are possible between subway and buses, and between different buses.
  • Contracts specify expiration dates but automatically renew without separate notice.

• Village buses' special operation structure is causing problems. Main realities include:

  • Village bus basic fare is 1,200 won, but actual settlement is only half due to high transfer passenger rates.
  • Discounted portions from transfers must be compensated by Seoul City through subsidy payments.
  • The association claims subsidies don't cover 100% of losses.
  • This causes village bus companies to face continuous deficits, they claim.

📕 Different Positions Between Seoul City and Village Bus Association

• Village Bus Association's claims and demands include:

  • They claim management difficulties worsened after transfer system implementation, with only half of passenger fares being settled.
  • They express dissatisfaction that Seoul City's subsidy support doesn't adequately compensate actual losses.
  • They argue that operating costs increase due to rising fuel prices and labor costs, but support is insufficient.
  • They announced withdrawal, saying they cannot maintain the transfer system without expanded compensation.

• Seoul City's counter-arguments and response policies include:

  • They expanded support from 19.2 billion won in 2019 to 41.2 billion won in 2025, more than doubling in 5 years.
  • They point out accounting irregularities and service degradation problems at some village bus companies.
  • They criticize low schedule adherence rates causing citizen inconvenience.
  • They present structural improvement plans including performance-based support systems and accounting transparency.

💡 Main Issues in Transfer System Conflict

1. Adequacy of Financial Support: Association claims insufficient, City argues significantly expanded
2. Accounting Transparency: City points to some company irregularities, Association emphasizes structural problems
3. Service Quality: Whether to improve schedule punctuality and operation rates
4. Negotiation Balance: Association's pressure tactics through withdrawal announcement
5. Minimizing Citizen Damage: Preventing citizen inconvenience during conflict resolution

3️⃣ Expected Impact of Withdrawal and Response Plans

✅ Direct Impact on Citizens

• Transportation cost burden is expected to increase significantly. Main changes include:

  • Transfers from subway to village buses will require an additional 1,200 won payment.
  • Transfers from city buses to village buses will also incur separate fees.
  • Round-trip use will create an additional daily burden of 2,400 won.
  • Monthly transport costs could increase by 40,000-50,000 won maximum.

• Certain groups are expected to face bigger impacts. Main affected groups include:

  • Transportation-disadvantaged people (elderly, disabled) who mainly use village buses may face significant harm.
  • Economic burden will increase for low-income areas with high village bus dependency.
  • Household budget burden will increase for office workers who commute only by public transport.
  • Student transportation costs will also increase, leading to higher education expenses.

✅ Policy Solutions and Negotiation Prospects

• Seoul City's structural improvement plan is key. Main directions include:

  • Introducing performance-based support systems to link service quality with support.
  • Ensuring accounting transparency to promote efficient use of support funds.
  • Proposing expanded support conditional on improved schedule punctuality and operation rates.
  • Introducing digital management systems to increase operational efficiency.

• Settlement possibilities and future prospects include:

  • Both sides don't want citizen harm, making last-minute negotiations likely.
  • The association is using withdrawal announcement as a negotiation tool, so finding compromise at some level is expected.
  • Seoul City's additional support and the association's service improvement promises are likely to become exchange conditions.
  • Gradual solutions through step-by-step improvement plans are expected.

4️⃣ Related Terms Explanation

🔎 Public Transport Transfer System

• The public transport transfer system waives or discounts additional fees when using multiple connected transportation modes.
  • The public transport transfer system means an integrated fare structure that doesn't charge additional fees or applies discounted rates when transferring between different public transport modes like subway, buses, and village buses within a certain time period. It was introduced in Seoul in 2004 and later spread throughout the metropolitan area.
  • Main features of the transfer system include: First, no additional fees for transfers within 30 minutes. Second, transfer benefits only available when using transportation cards. Third, transfers possible between subway↔buses and bus↔bus. Fourth, transfer frequency limits exist, so unlimited transfers are not possible.
  • Effects of introducing the transfer system include citizens' transportation cost savings, increased public transport usage, and improved traffic flow due to reduced transfer resistance. However, it also created complex financial structures including revenue settlement between transport companies and government subsidy payments.

🔎 Village Bus

• Village buses are small buses connecting residential areas not served by subway or city buses to major transport hubs.
  • Village buses are small buses with 25 seats or fewer that operate to resolve public transport blind spots, mainly connecting mountain areas, new town internal circulation, and subway stations with apartment complexes. Introduced in the mid-1990s, approximately 270 routes currently operate in Seoul.
  • Village bus characteristics include: First, using small vehicles with 25 seats or fewer. Second, able to operate on narrow roads or steep terrain. Third, life-oriented transportation supporting residents' daily movement. Fourth, mostly private business operators running the system.
  • Village buses are essential transportation for transportation-disadvantaged people and residents in areas with poor public transport access. Especially in aging areas, village buses are often the only public transport option, so transfer system withdrawal could significantly impact these residents' mobility rights.

🔎 Subsidy System

• The subsidy system compensates transport companies for losses due to public transport policy implementation.
  • The subsidy system means local governments financially compensating transport companies for revenue reductions caused by public transport policies like transfer discounts, fare freezes, and free rides. It's used as a policy tool to balance public interest and profitability.
  • Subsidy calculation methods include: First, calculating based on discount amounts from transfers. Second, reflecting differences between actual passenger numbers and settlement fares. Third, comprehensively considering operating cost increases and revenue decreases. Fourth, possibly including company-specific operation performance and service quality as evaluation factors.
  • Subsidy system issues include setting appropriate compensation levels, ensuring accounting transparency, linking service quality with support, and sustainability of financial burden. This transfer system withdrawal controversy also stems from conflicts over subsidy levels, requiring future system improvements.

5️⃣ Frequently Asked Questions (FAQ)

Q: How much will village bus fares increase if they withdraw from the transfer system?

A: You'll need to pay an additional 1,200 won basic fare for transfers.

• Currently, transfers from subway or city buses to village buses within 30 minutes require no additional fees, but after withdrawal, you must pay the village bus basic fare of 1,200 won separately. For example, using subway (1,370 won) + village bus (1,200 won) would total 2,570 won, an increase of 1,200 won from current costs. Daily round-trip use would create an additional burden of 2,400 won, with monthly transport cost increases expected at 40,000-50,000 won. This will be a significant economic burden especially for residents with high village bus dependency.
• However, if you use only village buses independently, the existing fare of 1,200 won remains unchanged. The problem is additional costs when connecting with other public transport.

Q: Have there been similar transfer system withdrawal cases in other regions?

A: Nationwide cases are rare, but some regions have had similar conflicts.

• Other metropolitan cities like Daegu and Busan have also had conflicts between transport companies and local governments over subsidy payments during transfer system operations. However, actual complete withdrawal from transfer systems is very rare. Most cases have been resolved through negotiations by adjusting compensation levels or adding service improvement conditions. Some cities and counties in Gyeonggi Province have delayed or reduced transfer system introduction due to financial burden.
• Seoul's current case draws attention because the entire village bus association collectively announced withdrawal in the region where the transfer system is best established. This is very unusual nationwide, and the resolution method could influence other regions, making the outcome noteworthy.

Q: When will transfer system withdrawal be applied if confirmed?

A: The association announced January 1, 2025, as the starting point.

• Seoul Village Bus Transport Business Association announced they would withdraw from the transfer system starting January 1, 2025. However, this is only the association's unilateral announcement, and actual withdrawal requires going through agreement termination procedures with Seoul City. Both sides are currently continuing negotiations, so actual withdrawal depends on consultation results during the remaining period.
• If withdrawal is confirmed, sufficient guidance will be provided to citizens before implementation. Preparation work including transportation card system changes, fare structure guidance, and alternative transport information is also needed. Seoul City stated they are seeking solutions through negotiations until the last minute to minimize citizen inconvenience. Therefore, actual implementation remains to be seen until year-end.

Table of Contents

• Go to Guide