Incheon's austerity drive has intensified since the launch of the ninth elected municipal administration, with the city moving to scale back its "Incheon i Bada Pass" ferry fare subsidy program — following an earlier suspension of cashback benefits under the Incheon e-eum card.
The city announced Tuesday that it will end fare subsidies for visitors from other cities and provinces under the Incheon i Bada Pass program, effective Saturday at midnight.
The move comes after ridership on coastal passenger ferries surged well beyond projections since the program launched, exhausting the allocated budget ahead of schedule.
After a comprehensive review of its fiscal position, the city said it determined that continuing the program in its current form was no longer feasible.
However, fare support will remain in place for island residents, Incheon citizens, people with hometown ties to Incheon, and family members visiting military personnel — preserving subsidies directly tied to residents' daily lives.
The city said the Bada Pass had been used to promote island tourism and expand maritime transport use, but a simultaneous rise in ferry ridership and fuel surcharges caused fiscal pressure to mount sharply.
Even after ending support for out-of-city visitors, the city projects a funding shortfall of about 6.8 billion won ($4.59 million) for this year's program operations.
Rather than borrowing to extend the program, the city said it had decided to prioritize fiscal soundness. It plans to overhaul its overall budget management to ensure the program's long-term viability.
The decision marks another round of fiscal tightening, coming on the heels of the recent suspension of Incheon e-eum cashback support.
Since Mayor Park Chan-dae took office, the city has launched a fiscal and budget reform task force and made restoring fiscal health its top administrative priority, including a review of financial burdens accumulated under the previous administration.
The successive cutbacks have drawn disappointment from residents. The city, however, maintains that establishing a sustainable fiscal foundation takes precedence over stretching limited resources.
Kim Seong-hyeon, head of Incheon's Island and Ocean Policy Division, asked for understanding from affected users. "This is not a stopgap measure to plug a short-term budget gap, but an unavoidable decision to build a stable, long-term fiscal management framework," he said. "We ask for residents' understanding and cooperation."
The city said it will continue providing fare support for island residents and Incheon citizens while working in parallel to secure the program's sustainability and fiscal soundness.
gilbert@heraldcorp.com
