Seoul: The Seoul Metropolitan Council's recent initiative to provide bus fare support for residents aged 70 and over, coupled with considerations to raise the eligibility age for free subway rides from 65 to 70, marks a pivotal moment in South Korea's approach to aging. While seemingly a transportation policy, this reform is part of a broader discourse on redefining what it means to be "old" in a rapidly aging society.
According to Yonhap News Agency, the immediate impetus for this reform is the fiscal strain on Seoul Metro, which reported a deficit of 826.8 billion won ($537 million) last year, with free rides for seniors contributing 448.8 billion won to this shortfall. Over the past five years, the cumulative losses linked to the senior ride program have surpassed 3 trillion won. The proposed changes aim not just to curb expenses but to recalibrate the support system. By offering subsidized bus rides to those 70 and older, the reform addresses a significant gap for seniors in areas lacking convenient subway access. The estimated annual cost of 50 billion to 60 billion won is considerably lower than the savings anticipated from adjusting the subway eligibility age.
The conversation extends beyond budgetary concerns. The age of 65 as the threshold for senior benefits was established in 1981, when life expectancy was 66.7 years. Today, life expectancy has risen to 83.7 years, and more than 20 percent of the population is 65 or older, classifying South Korea as a "superaged society." By 2030, that demographic is expected to expand to 25.5 percent. Public sentiment also supports this shift, with nearly 60 percent of Koreans advocating for raising the senior age criterion to 70, reflecting a change in how old age is perceived.
Despite the changing perceptions, national reform has lagged. Discussions about redefining the senior age threshold have been ongoing since 2019, yet tangible progress has been elusive. Local governments like Daegu have taken the initiative, linking bus and subway benefits to phased increases in eligibility ages, but these measures cannot replace a comprehensive national strategy.
The challenge lies in ensuring that raising the age threshold does not exacerbate existing issues, such as South Korea's highest elderly poverty rate among OECD countries. Without adjustments to retirement age policies, reemployment opportunities, and welfare program designs, raising eligibility ages could shift financial burdens from public accounts to individual households. The debate must also consider moving from universal age-based benefits to systems that account for income and financial need.
Ultimately, Seoul's transit reform is a catalyst for a broader, overdue discussion on aging in South Korea. The goal is not to reduce spending on the elderly but to develop institutions that reflect longer lifespans, evolving work patterns, and the realities of a superaged society.