Incheon bus subsidies face scrutiny over private equity dividends

Incheon's bus semi-public system is facing intense scrutiny as financial support for the program is set to exceed 311.8 billion won this year for the first time. Critics, including Incheon City Council member Jeon Jae-un, have raised concerns that the system is being exploited by private equity funds to secure massive dividends while public oversight remains ineffective.

Data indicates that nine bus companies owned by private equity funds received approximately 382.1 billion won in financial support over the last five years, accounting for roughly 30% of the total subsidies. Despite existing regulations regarding dividend limits and share transfers, there have been zero administrative actions taken against these funds in the past six years regarding such matters.

While Incheon City maintains that it applies the same standard transport cost criteria to all companies regardless of ownership, council members argue that the city has failed to implement promised safeguards. They are calling for the introduction of a pre-screening system for capital entry and stricter dividend restrictions to prevent the leakage of taxpayer funds before the fund maturities in 2027.