A foreign tourist dressed as Santa Claus enjoys the first snowfall near Hongdae in Mapo District, Seoul, on December 4. (Yonhap)
SEOUL, Dec. 15 (Korea Bizwire) — South Korea is preparing to overhaul its public transit payment system to allow foreign visitors to ride buses and subways using the same credit cards they carry abroad, a shift aimed at easing one of the most persistent inconveniences for travelers.
The Ministry of Land, Infrastructure and Transport has begun selecting contractors for a yearlong study on introducing an “open-loop” payment system, which would allow Visa, Mastercard and other international cards to be used directly at transit gates—an option already standard in cities like New York, London and Singapore.
Foreign tourists, whose numbers rose to 15.8 million between January and October—up 15.2 percent from a year earlier and exceeding pre-pandemic levels—currently must buy and reload local transit cards in cash or purchase special prepaid cards, a hurdle that has long drawn complaints.
On December 4, near Hongdae in Mapo District, Seoul, foreign tourists take commemorative photos as snow falls. (Yonhap)
Transitioning to an open-loop system, however, will require substantial investment. Domestic payment terminals would need to be replaced with global-standard devices, and new authentication modules and payment servers installed. Industry officials estimate the cost could reach several hundred billion won.
The study will examine how the expenses should be allocated and whether the new system can be integrated with Korea’s nationwide transfer-discount network, a complex system that automatically calculates fare reductions across buses, subways and regional operators.
Because a rapid nationwide rollout is considered unrealistic, officials are weighing phased implementation plans based on equipment replacement schedules, in consultation with local transit agencies and municipalities.
If adopted, the system could begin operating as early as 2027. Seoul has already announced its own plan to introduce open-loop payments by 2030, and coordinated national standards are expected to be discussed.
M. H. Lee (mhlee@koreabizwire.com)
