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LG CNS Smart Transportation

AFC | Seoul, Korea new Smart Card System

Project Scope

In 2003, LG CNS was awarded to implement a globally unprecedented system that restructured Seoul’s public transportation network to provide integrated fare collection and settlement from both buses and subways via smart cards, and provide revenue apportionment to multiple public transit operators.

However, there were challenges to implement integrated fare collection. First of all, transfers to other modes of public transportation were not considered. Each bus route was managed by a different bus operator, and therefore not coordinated. There were multiple means of paying fares, including cash; passengers were required to pay separately for each transfer. Lastly, government subsidies were on the rise due to deteriorating financial results from bus companies.

Our Solution

Seoul’s new traffic card system provided an integrated IT service that combined everything from policies to business models, technology and services.

Policy

  • Improvements were made in the inadequate linkages between public transportation systems, inefficient business lines, and excessively complex methods of payment. (Bus lines and channels were reorganized, bus operations became quasi-public, fare collection and settlement systems were changed)

Business model

  • A new business model was established (issuance of cards, charging/refunds, fare settlement, customer service)

Technology & services

  • Services were provided to enable payment anytime, anywhere, and via any device (diverse fare systems, compatibility with international standards, extensibility, provision of value-added services)

LG CNS Solution

  • Consolidated all public transit fare payments into a single “T-money” card.
  • Introduced an integrated payment system; only a single fare payment is required for all qualified transfers among urban buses, local shuttles, and subways
  • Facilitated accurate traffic forecasts and transparent accounting

Implementation of integrated solutions for a "Single Payment System" using Smart Cards

  • Linked 765 Bus Routes / About 10,000 Buses
  • Connected 9 Metro Lines / 391 stations
  • About 83,000 Taxis (including Seoul Metropolitan Area)
  • Micropayment / about 30,000 stores, 500 parking lots, 1,900 public services, 5,000 vending machines.
  • Processed over 26 million transactions per day
  • 100 Million Prepaid T-money cards issued / 71 Million Card in Use
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The T-money Traffic Card System utilizes smart cards with built-in arithmetic logic units and in-vehicle GPS to gather data on the time, distance and mode of transportation for trips, and calculates the fare accordingly.

Thanks to the transfer discount and distance based charging enabled by the system, citizens can now use public transit much more economically.

Passengers are only required only to tag their T-money cards, which significantly expedites boarding and paying, guaranteeing vastly improved speed and convenience.

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Our Benefits

  • Provide accurate forecast of public transportation demand based on real data, which is essential to establish effective policies.
  • Enhance accessibility of passengers through using all modes of public transportation simply by tagging a single all-access Smart Card, and enjoy savings via transfer discounts and other value added benefits provided to smart card users.
  • Provide revenue data per vehicle and route, and generate other information in real time. Higher customer satisfaction can contribute significantly to cost savings and revenue growth from the increase in the number of passengers.