President Lee: "Deficits from SRT and KTX Must Be Considered... If Accumulated, They Will Ultimately Be Covered by Public Taxes"

President Lee Presides Over Cabinet Meeting on the 25th

Express Buses Disappearing Due to Weakened Competitiveness

"Polarization in Transportation;
Measures Needed for Review"

President Lee Jae-myung commented on August 25 regarding the fare reduction following the integration of KTX and SRT, stating, "We must consider the fact that the overall deficit in railway operations continues to grow."

In a Cabinet meeting held that morning at the Blue House, President Lee made these remarks after receiving a report from Minister of Land, Infrastructure and Transport Kim Yoon-duk on the "Integration of High-Speed Railways to Change the Everyday Lives of the People." Minister Kim reported that the integration of KTX and SRT would be completed by September 1 and that KTX fares would be reduced by 10 percent to match SRT levels.

President Lee pointed out, "SRT appears to have actually run a deficit, and KTX is also operating in the red. It's not as if fares have been raised; if fares are lowered, wouldn’t the existing deficit only increase further?" He continued, "Providing affordable rail service for the public is important, but if the deficit keeps piling up, it will ultimately become a burden for the people that has to be covered by tax money."

President Lee Jae-myung is speaking at the Cabinet meeting held at the Blue House on the 25th. August 25, 2026. Photo by Yonhap News

Minister Kim explained, "The goal is to ensure that people can truly feel the benefits of integration." President Lee responded, "I assume the reasoning is that by lowering fares, ridership will increase and the overall deficit will not grow."

President Lee also raised concerns that "express and intercity bus services continue to disappear." He analyzed, "Relatively, the number of railways is growing rapidly, speeds are fast, and fares are low. As bus ridership declines, terminals are shutting down, and the number of drivers and related workers is decreasing."

President Lee stated, "This is also a kind of polarization," adding, "People in areas with high-speed rail or stations have convenient, cheap, and fast transportation, but people in other areas have to take the bus. They end up having to transfer from a local bus to the train, then another bus, or even a taxi."

In response, Minister Kim replied, "There needs to be measures to designate essential routes for bus companies and ensure they continue operating, as well as plans to realistically adjust fares." President Lee then said, "Fare adjustments alone are unlikely to be a comprehensive solution," instructing, "I would like you to review possible responses to this issue."

Meanwhile, Kang Yoo-jung, Chief Spokesperson for the Blue House, said in a written briefing that day that President Lee received a report from the Ministry of Health and Welfare on the "Current Status and Improvement Plan for Lump-Sum National Pension Repayments by Foreigners." President Lee inquired about the number of foreigners making such repayments and criticized the fact that foreigners who have resided in Korea only briefly are eligible for lump-sum repayments, calling it contradictory.

He then urged the Ministry of Health and Welfare, "From the perspective of the people, you should urgently consider tightening eligibility requirements based on the actual period of residence in Korea."

Finally, President Lee called for strengthened communication and public relations regarding each ministry's policies. He emphasized active and preemptive responses, stating, "Respond immediately to prevent any misinterpretation or misunderstanding of policies, and especially, provide detailed explanations to the public regarding changes related to tax expenditures or the tax system."

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