Korea Railroad Corporation (Korail) will consolidate five of its subsidiaries into three. The company plans to expand discount promotions at its convenience store, Storyway, and convert underutilized vending machine spaces on KTX trains into luggage storage areas to enhance passenger convenience.
The Ministry of Land, Infrastructure and Transport and Korail announced on September 22 that they will complete the subsidiary consolidation process on the 23rd, restructuring the existing five subsidiaries into three specialized companies focused on customer service, distribution logistics, and maintenance.
Korail Networks and Korail Tourism Development will merge into a new customer service company tentatively named Korail Tourism Networks. Korail Distribution and Korail Logistics will combine to form a company tentatively called Korail Distribution Logistics. Korail Tech will not be included in the merger but will strengthen its role as a maintenance specialist through functional adjustments with Korail. The official names of the consolidated companies will be finalized later this year after gathering employee feedback and expert consultations.
This consolidation process began in December of last year when the Ministry of Land established a task force for restructuring subsidiaries. The integration plan, developed through union discussions and five rounds of labor-management consultations, was confirmed after review and approval by the Public Institution Operation Committee in June.
In conjunction with the consolidation, Korail will also improve services that passengers can directly experience. Korail Distribution Logistics will expand discount promotions at Storyway convenience stores, including 1+1 and 2+1 offers. Some imported products will be distributed directly through Korail Logistics' network, reducing distribution stages and enhancing price competitiveness.
Additionally, luggage storage space on KTX trains will be expanded. Korail Tourism Networks will convert low-usage vending machine areas into luggage storage spaces. By the end of the year, the usage status of vending machines will be assessed to determine which areas to convert, with implementation occurring in phases.
Improvements will also be made to station cleaning and related transportation services. Korail Tech will introduce AI-based equipment for station cleaning and conduct special cleaning of aging train restrooms using steam equipment. Korail Tourism Networks will expand transportation services linked to rail travel, including parking, car-sharing, rental cars, buses, and demand-responsive transport (DRT). Starting in late next month, a 30% discount on parking fees will be offered to users of rail tourism products.
Functional adjustments between Korail and its subsidiaries will continue. A roadmap for these adjustments will be established by the first half of 2027, with consultations with relevant agencies, aiming to complete contracts by the end of that year. It is assumed that there will be no personnel transfers between agencies as a result of the consolidation.
During the consolidation process, the principle of job retention will be upheld to ensure that employees do not face disadvantages. The Ministry of Land plans to continue operating the labor-management consultation body after the consolidation to discuss wage and welfare disparities, improvements to work systems, and personnel and functional adjustments.
Kim Tae-byeong, Director of the Railway Bureau at the Ministry of Land, stated, "This subsidiary consolidation is not merely about reducing the number of companies; it aims to clarify the roles of each subsidiary and enhance expertise in various fields to improve the benefits and safety of rail passengers. We will also continuously communicate with labor to support the stable establishment of the three-subsidiary system, including improvements in employee treatment."
The Ministry of Land, Infrastructure and Transport and Korail announced on September 22 that they will complete the subsidiary consolidation process on the 23rd, restructuring the existing five subsidiaries into three specialized companies focused on customer service, distribution logistics, and maintenance.
Korail Networks and Korail Tourism Development will merge into a new customer service company tentatively named Korail Tourism Networks. Korail Distribution and Korail Logistics will combine to form a company tentatively called Korail Distribution Logistics. Korail Tech will not be included in the merger but will strengthen its role as a maintenance specialist through functional adjustments with Korail. The official names of the consolidated companies will be finalized later this year after gathering employee feedback and expert consultations.
This consolidation process began in December of last year when the Ministry of Land established a task force for restructuring subsidiaries. The integration plan, developed through union discussions and five rounds of labor-management consultations, was confirmed after review and approval by the Public Institution Operation Committee in June.
In conjunction with the consolidation, Korail will also improve services that passengers can directly experience. Korail Distribution Logistics will expand discount promotions at Storyway convenience stores, including 1+1 and 2+1 offers. Some imported products will be distributed directly through Korail Logistics' network, reducing distribution stages and enhancing price competitiveness.
Additionally, luggage storage space on KTX trains will be expanded. Korail Tourism Networks will convert low-usage vending machine areas into luggage storage spaces. By the end of the year, the usage status of vending machines will be assessed to determine which areas to convert, with implementation occurring in phases.
Improvements will also be made to station cleaning and related transportation services. Korail Tech will introduce AI-based equipment for station cleaning and conduct special cleaning of aging train restrooms using steam equipment. Korail Tourism Networks will expand transportation services linked to rail travel, including parking, car-sharing, rental cars, buses, and demand-responsive transport (DRT). Starting in late next month, a 30% discount on parking fees will be offered to users of rail tourism products.
Functional adjustments between Korail and its subsidiaries will continue. A roadmap for these adjustments will be established by the first half of 2027, with consultations with relevant agencies, aiming to complete contracts by the end of that year. It is assumed that there will be no personnel transfers between agencies as a result of the consolidation.
During the consolidation process, the principle of job retention will be upheld to ensure that employees do not face disadvantages. The Ministry of Land plans to continue operating the labor-management consultation body after the consolidation to discuss wage and welfare disparities, improvements to work systems, and personnel and functional adjustments.
Kim Tae-byeong, Director of the Railway Bureau at the Ministry of Land, stated, "This subsidiary consolidation is not merely about reducing the number of companies; it aims to clarify the roles of each subsidiary and enhance expertise in various fields to improve the benefits and safety of rail passengers. We will also continuously communicate with labor to support the stable establishment of the three-subsidiary system, including improvements in employee treatment."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.