Court "Government compensates 9 billion won to operators of the extension section of the Shinbundang Line"

A court ruled that the government should compensate private businesses that operate the extension section of the Shinbundang Line for losses from the operation of free rides for the elderly and disabled.

The Seoul Administrative Court recently ruled in favor of some of the plaintiffs, saying the government should pay 8.99 billion won in a lawsuit filed by Gyeonggi Railroad against the government.

The court said the reason for the ruling is that the government only conducts formal consultations and does not take action, such as suggesting alternatives to the operation of the free ride system.

Gyeonggi Railroad signed an agreement with the Ministry of Land, Infrastructure and Transport in December 2009 on the design and construction of the extension section of the Shinbundang Line.

At the time of the opening of the extended section in January 2016, the two sides agreed to compensate for losses incurred by the free transport system for the first five years to a limit of 5.5% of total use demand, and to decide on a free ride operation plan through consultation after January 2021, the sixth year.

However, as the Ministry of Land, Infrastructure and Transport did not respond to the Gyeonggi Railroad's consultation due to research services, Gyeonggi Railroad reported a fare change that applies general fares to free riders from May last year, but the Ministry of Land, Infrastructure and Transport refused to repair it, saying it should take into account the burden of the elderly and disabled and the possibility of accepting local areas.