※ The attached PDF is provided in Korean.

In this issue brief, we assess the potential of a restructured municipal transit pass to drive public transit shift in Seoul amid rising global fuel prices and pressing national emissions targets. Currently, the metropolitan government's unlimited transit pass, the Climate Card, costs KRW 62,000 per month, which offers limited incentive to middle-expenditure commuters who spend between KRW 20,000 and 60,000 monthly. To overcome this barrier, we propose lowering the pass price to KRW 20,000 and integrating Seoul's municipal bike-sharing system, Ttareungi, as a free service to resolve the last-mile gap between transit hubs and final destinations. By replacing post-hoc rebate programmes, such as the national K-Pass scheme, with immediate and substantial price reductions, municipal policy can directly influence daily travel choices at the point of decision.

Our analysis finds that reducing the monthly pass price to KRW 20,000 would expand total subscriptions to approximately 2.06 million, drawing in 1.34 million new users from the existing 10.8 million non-subscribed transit commuters. This policy would also encourage private vehicle users to switch to public transit. Based on transport elasticity modelling, we project a reduction in private car traffic by 157,464 to 407,464 vehicles daily, with the impact amplified when coupled with a projected 25 per cent rise in international oil prices. This modal shift is estimated to prevent up to 343,500 tonnes of carbon dioxide emissions and save up to 1.17 million barrels of imported petroleum annually, representing a key contribution to the national transport demand management target.

While implementing this proposal would require Seoul to secure an additional KRW 214.3 billion, bringing its public transit support budget to KRW 363.1 billion, the fiscal outlay is highly cost-effective compared to alternative decarbonisation initiatives. The carbon abatement cost of this scheme ranges from KRW 2.88 million to 3.33 million per tonne, which is more cost-effective than subsidising electric vehicle deployment at KRW 5.21 million per tonne and matches the efficiency of introducing eco-friendly buses. Ultimately, the proposed approach calls for integrating this affordable pricing scheme with broader private vehicle demand-management strategies, such as increased congestion charges, to accelerate Seoul's transition toward a public transit-centred urban model.

Author
Eunok PARK | Local Transformation Team | eunokpark@igt.or.kr