"Parcel Delivery by Subway"... Seoul Metro Corporation Challenges Future Growth Opportunities

Baekho Transportation Corporation President Press Conference
"Expanding from Passenger Transport to Logistics"

Baekho, President of Seoul Metro, announced that the corporation will break away from its reliance solely on subway fares and create new future revenue sources through 'urban underground logistics.'

At a press conference held at the Seoul Metro headquarters on the 31st of last month, President Baekho stated, "We are conducting in-depth research on establishing a Seoul-style urban logistics system utilizing the subway."

Baekho, President of Seoul Metro, is speaking at a press conference held at the Seoul Metro headquarters on the 31st.

Seoul Subway raised its base fare by 150 won last month, with an additional 150 won increase scheduled for the second half of next year. However, since the operating cost is 1,904 won, the final proposed fare of 1,550 won is still far from sufficient. In this regard, President Baekho proposed measures to resolve the corporation's chronic deficit problem, including ▲ management rationalization ▲ transforming subway commercial spaces into complex shopping centers ▲ establishing a Seoul-style urban logistics system ▲ disposing of idle real estate.

The most notable among these is the establishment of the Seoul-style urban logistics system. President Baekho said, "Seoul Metro is striving to find new revenue sources beyond the traditional method of operating solely on passenger fares and city financial support," adding, "The underground infrastructure of the subway is spread throughout Seoul, so we intend to utilize it."

The 'Urban Joint Logistics Center,' planned for construction between 2025 and 2030, envisions Seoul Subway handling logistics transportation in addition to passenger transport. The parcel delivery volume in Seoul and the metropolitan area accounts for 70% of the national total. The corporation aims to convert up to 10% of this volume to underground logistics.

President Baekho explained, "If logistics are delivered to each hub via the subway during off-service hours, operations can be more efficient," adding, "Currently, most logistics in Seoul do not move directly within the city but pass through Gyeonggi Province, which is inefficient." He further stated, "We are researching specific matters such as dedicated logistics facilities and exclusive elevators."

Regarding the recent announcement of a general strike by the labor union in opposition to workforce reduction plans, he explained that there will be no reduction in current staff. President Baekho said, "Personnel unrelated to safety will be outsourced again to subsidiaries, and for some employees, we plan to reduce headcount by not hiring replacements upon retirement," adding, "We will negotiate to minimize inconvenience to citizens."

This content was produced with the assistance of AI translation services.