The merger between Korea Railroad Corporation (KORAIL) and SR is progressing smoothly, with expectations that the completion date may be moved up. However, the challenges of fare freezes and substantial investment burdens have brought financial structure deterioration to the forefront as a key issue.
During a press conference on May 14 at a restaurant in Gwangju, President Kim Tae-seung stated, "The integration of our organization, financial structure, and safety systems is going very well," adding, "We are trying to expedite the merger timeline as much as possible." The merger, initially expected to be completed in September, may occur sooner depending on internal preparations.
Kim highlighted that once the merger is finalized, users will experience significant changes. He noted, "Reservations for KTX and SRT will be possible through a single app, and the issue of seat shortages will be noticeably improved," particularly with a substantial increase in seat availability for trains departing and arriving at Suseo Station.
However, he pointed out that the financial structure remains a pressing challenge. "Our financial structure is very weak," Kim said, warning that if the situation continues, the trains may operate without generating revenue.
KORAIL has not raised fares in the past 15 years, and during the merger process, it has promised a 10% discount to align with SRT fares. Kim remarked, "While fare discounts are a promise to the public, the financial pressure is significant," adding that fare increases require public agreement and political consensus, making them difficult to implement.
Additionally, the burden of large-scale investments complicates matters. The KTX trains, introduced in 2004, are nearing the end of their lifespan and require complete replacement, with replacement costs estimated at around 5 trillion won. Kim believes that government support for half of the replacement costs is necessary and is currently in discussions with the government to include this in next year's budget.
He emphasized that this replacement goes beyond merely updating old trains; it involves technological advancement. "We are not just replacing old trains but introducing new technology," he said, stressing that the railway technology we use must also be exportable.
The issue of public service obligation (PSO) compensation is another critical variable. KORAIL has PSO support for operating losses on conventional rail, but the compensation amount is insufficient, leading to accumulated financial burdens. Kim noted, "In Europe, most routes, including high-speed rail, are PSO eligible," and added that the same should be expanded to all 27 domestic routes, although this must be approached gradually.
On the same day, KORAIL demonstrated train coupling at the Honam Railway Vehicle Maintenance Center. The coupled trains underwent pre-departure checks for braking and door functions and completed a test run from Gwangju Songjeong Station to Seoul Station at 1 p.m.
Coupled trains operate by connecting two trains that depart or arrive at the same station, allowing for increased passenger transport in areas where expanding service frequency is challenging, such as the bottleneck between Pyeongtaek and Osong.
Han Gi-beom, head of the high-speed vehicle operations department, explained, "There is only one maintenance line at the Honam Center capable of servicing coupled trains, known as the K line," adding that connecting two KTX-Sancheon trains, each approximately 201 meters long, allows for maintenance of up to about 402 meters.
* This article has been translated by AI.
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