Concerns are mounting that Seoul's fiscal burden on its bus system will grow further after the Supreme Court recently ruled that regular bonuses for city bus drivers must be included in ordinary wages. Over the past 20 years, wage growth for Seoul city bus drivers has significantly outpaced the average for all industry workers, while cumulative fiscal support since the introduction of the semi-public system has already exceeded 7 trillion won ($5.2 billion).
According to "Seoul Bus in Statistics 2026," published by the Seoul Bus Transport Business Association and obtained by The Seoul Economic Daily on Thursday, the monthly average wage for Seoul city bus drivers rose 107.9% from 2,478,316 won in 2004, when the semi-public system was introduced, to 5,151,256 won in 2024. Over the same period, the average wage for all industry workers rose 78.6%, from 2,254,889 won to 4,027,000 won. On an annualized basis, bus driver wages rose 5.1%, well above the 3.7% average for all industries.
Rising labor costs have pushed up the standard transport cost, the average daily cost of operating one bus. Seoul's standard transport cost rose 95.8%, from 441,867 won in 2004 to 865,353 won in 2023. Of this, labor costs surged 124%, from 281,893 won to 633,495 won. The share of labor costs in the standard transport cost also expanded from 63% to 75%.
The rising costs have translated into a heavier fiscal burden for the Seoul city government. Under the semi-public system, the city covers the shortfall when bus operating revenue falls short of operating costs. From the second half of 2004 through last year, Seoul's cumulative deficit support for city buses reached 7.1478 trillion won. Annual support also grew from 124.6 billion won in 2004 to 512.7 billion won in 2025. Critics say the structure, which guarantees fiscal coverage of deficits even as costs rise, weakens private operators' incentive to cut costs.
The Supreme Court's ruling on ordinary wages is likely to further amplify this burden. The Seoul city government estimated that including regular bonuses in ordinary wages could raise bus driver wages by up to 16.4%. Combined with the 2.9% baseline increase agreed earlier this year, the effective wage increase would exceed 19%. Given that every 1% increase in bus driver wages requires about 11 billion won in additional city funding, a 19% wage hike would add about 209 billion won to the fiscal burden. In that case, the annual fiscal outlay for the bus semi-public system is projected to exceed 700 billion won.
The fiscal pressure could also erode convenience for citizens. The number of authorized Seoul city buses fell by 925, from 8,307 in 2004 to 7,382 in 2024. A reduction in operating vehicles can lead to wider intervals between buses and reduced convenience for users. Some argue that a fare hike is inevitable, but given concerns over public backlash and inflationary pressure, calls for reforming the semi-public system are expected to grow. Some expect related discussions to gain momentum after the local elections. Lim Sam-jin, president of the Green Economy Research Institute, said, "We need to consider switching to a system that sets bus wages in advance to manage funding properly," adding, "We also need to consider measures such as introducing a congestion charge, as other countries have done, to secure separate funding for public transportation."