Seoul Metro Loses Case Seeking KRW 3.7 Billion in Compensation for ‘Free Rides’; Deficit Burden Continues

[Financial News] Seoul Metro lost a first-instance damages lawsuit seeking compensation from the state for losses caused by free rides provided to national merit recipients. The operator will have to bear KRW 3.7 billion in losses stemming from the free rides, as well as the litigation costs. Its request to refer the failure to allocate the relevant budget for constitutional review was also rejected.
Civil Division 36 of the Seoul Central District Court, presided over by Judge Kwon Tae-gwan, ruled against Seoul Metro on Monday in the first-instance damages lawsuit the operator filed against the Republic of Korea.
Seoul Metro filed the lawsuit against the Ministry of Patriots and Veterans Affairs last July, seeking compensation for KRW 3.7 billion in losses incurred in 2024 due to free rides for national merit recipients. The operator argued that because the state established the free-ride benefit by law, the state should also bear the cost. It further contended that although the relevant law requires the state to provide subsidies within the limits of the budget, the failure to allocate a budget had effectively rendered the law meaningless.
The government, however, countered that Seoul Metro, as a public corporation, could not be the holder of fundamental rights and that the matter was not subject to a civil lawsuit against the state.
According to Seoul Metro, its losses from free rides have increased by an average of 10% annually over the past five years. Its cumulative losses reached KRW 413.5 billion in 2024.

[email protected] Chang-hoon Lee Reporter