{"id":2205323,"date":"2024-05-31T12:44:08","date_gmt":"2024-05-31T03:44:08","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205323"},"modified":"2024-05-31T14:38:23","modified_gmt":"2024-05-31T05:38:23","slug":"free-subway-rides-for-seniors-strains-south-koreas-railways-and-ignites-debate","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/free-subway-rides-for-seniors-strains-south-koreas-railways-and-ignites-debate\/","title":{"rendered":"Free subway rides for seniors strains South Korea\u2019s railways, and ignites debate"},"content":{"rendered":"
South Korea faces significant challenges in maintaining its current senior welfare policies, particularly <\/span>free subway rides<\/span><\/a> for senior citizens. Current policies not only threaten the country\u2019s fiscal sustainability but also raise questions about the nation\u2019s ability to cope with a rapidly aging population.<\/span><\/p>\n As the elderly population continues to grow and the birth rate remains low, policymakers are confronting questions about how to address these risks and consider alternative solutions to ensure the long-term viability of senior welfare programs.<\/span><\/p>\n Lee Jun-seok, the former leader of the New Reform Party (NRP), brought these issues to the forefront earlier this year when he <\/span>pledged<\/span><\/a> to abolish the country’s free-ride policy for senior citizens.<\/span><\/p>\n Lee argued that the existing policy places an undue burden on the country\u2019s national railway operator, Korea Railroad Corporation (Korail), leading to increased debt that future generations will ultimately have to bear.<\/span><\/p>\n As an alternative, the NRP proposed providing senior citizens with annual transportation vouchers worth $87 (120,000 won). Once the voucher is exhausted, seniors would receive a 40% discount on transportation costs.<\/span><\/p>\n But this proposal sparked an intense debate not only on the free-ride policy but also on the broader issue of welfare policies for South Korea\u2019s senior citizens.<\/span><\/p>\n DEMOGRAPHIC SHIFTS AND POLICY EVOLUTION<\/b><\/p>\n South Korea\u2019s free ride policy for senior citizens has evolved since its introduction in May 1980, when it initially provided a 50% discount on transportation costs for citizens aged 70 or older. The Elderly Welfare Act of 1981 redefined the senior citizen age from 70 to 65, which remains the standard today.<\/span><\/p>\n In 1984, the South Korean government further reformed the law, replacing the 50% discount with completely free transportation rides for senior citizens.<\/span><\/p>\n However, since the policy\u2019s inception, South Korean society has undergone significant demographic shifts that have prompted a reevaluation of senior welfare policies. The <\/span>elderly population<\/span><\/a> has grown from 4% in 1980 to about 20% today, driven by a steadily decreasing birth rate and improved health care and sanitation, among other factors.<\/span><\/p>\n According to Statistics Korea, South Korea\u2019s total fertility rate fell to a quarterly low of <\/span>0.65<\/span><\/a> in the fourth quarter of 2023, making it the <\/span>lowest<\/span><\/a> among the Organization for Economic Co-operation and Development (OECD) countries. Simultaneously, <\/span>life expectancy<\/span><\/a> has risen from 66 in 1980 to 84 today.<\/span><\/p>\n Concurrently, Seoul Metro \u2014 a government-owned rapid transit system that serves the Seoul Metropolitan Area \u2014 has <\/span>recorded<\/span><\/a> a net loss of around $771 million (1 trillion won) annually since 2020.<\/span><\/p>\n