South Korea is moving forward with plans to allow foreign credit cards on buses and subways, marking a significant shift in public transportation accessibility. The policy aims to improve convenience for international visitors while modernizing the nation’s transit payment infrastructure. Officials say the reform could remove a long-standing hurdle for tourists unfamiliar with Korea’s closed transit card system.
The Ministry of Land, Infrastructure and Transport launched a formal feasibility study this month to evaluate the proposed open-loop payment model. The study will run through the end of next year and assess technical requirements, cybersecurity standards, and projected implementation costs. If approved, authorities expect a phased rollout to begin no earlier than 2027.
Currently, most public transportation systems in South Korea rely on closed-loop cards that require users to purchase and preload local transit cards. As a result, foreign travelers often struggle with fare payments, particularly when transferring between buses and subways. Officials believe allowing foreign credit cards would significantly reduce confusion and improve travel efficiency.
The proposed reform centers on an open-loop system that supports global card networks such as Visa and Mastercard. Under this model, passengers could tap overseas-issued cards directly at gates or readers. Transport officials emphasized that transaction speed and data security will remain top priorities throughout system development.
Another critical issue involves compatibility with South Korea’s free and discounted transfer system. Major metropolitan areas, including Seoul and Busan, allow passengers to transfer between transport modes at reduced costs. Authorities are evaluating whether foreign credit cards can integrate seamlessly with this fare structure without disrupting existing subsidies.
Seoul’s metropolitan government has already announced plans to gradually introduce open-loop transit payments for international visitors. City officials aim to complete the transition by 2030 and coordinate closely with the central government. Policymakers expect unified standards to prevent fragmented systems across regions.
Industry analysts say the initiative reflects growing regional competition to attract international tourists and business travelers. Simplified transit payments could boost visitor satisfaction and increase spending across retail and hospitality sectors. Officials also note that foreign students and expatriate workers would benefit from easier daily commuting.
Government representatives cautioned that infrastructure upgrades will require extensive coordination with regional governments and transport operators. They also stressed the importance of reliable fare settlement systems and clear dispute resolution processes. Despite these challenges, officials expressed confidence that gradual pilots can address technical concerns.
Looking ahead, authorities will use the study’s findings to guide policy decisions and infrastructure investment. If successful, foreign credit cards could become a standard payment option nationwide. Officials view the initiative as a key step toward making South Korea’s transportation system more globally accessible.
