“The world’s best subway” | Why Seoul’s subway drew praise from CNN and now attracts railway delegations after starting with Japanese technology
An independent exercise, not a statement by the video creator or verification of every claim in the video.
Does carrying more riders increase the operating deficit?
Consider a hypothetical subway line with 1,000 rides a day. At an average fare of 1,000 won, daily fixed costs of 1,000,000 won and a variable cost of 500 won per ride, total daily cost is 1,500,000 won, or 1,500 won per ride. The daily deficit is 500,000 won. If trains have spare capacity for 100 extra rides and fares and variable cost per ride stay the same, revenue increases by 100,000 won and cost rises by 50,000 won. The daily deficit falls to 450,000 won.
Check for yourself
- At what point would additional riders require more trains or staff?
- If the actual fare paid by additional riders changes, what happens to the difference between revenue and cost per extra ride?
Limits of application
This hypothetical calculation assumes spare capacity and constant fixed costs and unit variable costs. It excludes crowding costs and subsidies.
- What to look for
- See how Seoul expanded its subway and changed safety and accessibility practices after introducing technology from abroad.
- Why it matters
- Compare average fares with average costs, then calculate how cost and revenue change when extra riders board trains with spare capacity.
Timeline
8 segmentsSeoul reported that for 2025 on Line 1 through Line 8, average transport cost per ride was 1,817 won and average fare was 1,036 won, a gap of 781 won. Average cost includes labor and depreciation. The video also discusses aging trains and delivery delays, raising questions about both costs and service levels.