Korail-SR merger must not lead to inefficiency

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Korail-SR merger must not lead to inefficiency

Published: 09 Dec. 2025, 00:00

Audio report: written by reporters, read by AI

An SRT train bound for Suseo and a KTX train wait to depart on the platform at Pohang Station in North Gyeongsang on Sept. 3, 2023. [NEWS1]

The government plans to integrate the high-speed KTX and Super Rapid Train (SRT) rail systems by the end of next year. Beginning in March, KTX trains will run to Suseo Station and SRT trains to Seoul Station as part of a cross-operation arrangement, with full integration of scheduling and operations to follow in the second half of the year. The Ministry of Land, Infrastructure and Transport announced the roadmap on Monday, saying the merger would expand public convenience by increasing the number of high-speed services. The integration of Korea Railroad Corporation (Korail), which operates the KTX, and SR, which operates the SRT, was a campaign pledge of President Lee Jae Myung and is part of a wider restructuring of public institutions. Both the railway union and Korail have also advocated integration, arguing that separated operations create more than 40 billion won ($27 million) in duplicated annual costs and inconvenience to passengers.

Seat shortages, especially on SRT routes, have been the biggest driver of the accelerated push. According to Korail, full integration of trainsets and schedules would allow operators to add roughly 16,000 seats per day through improved efficiency. Streamlining safety-management systems is another reason cited by those who support the merger.

Although the government expects greater convenience for passengers, there are serious concerns. When the SRT service began in 2016, it ended Korail's monopoly and introduced competition to the market. SRT fares averaged 10 percent lower than those of the KTX, and passengers gained alternatives during railway strikes. Korail has said it is considering a 10 percent discount on KTX fares after the merger, but no one knows what the fare policy will look like once it regains monopolistic control. Without additional trains and upgrades to bottleneck sections such as the Pyeongtaek–Osong and Gwangmyeong–Susaek stretches, the plan to expand service frequency and secure more seats may face structural limits. Some also argue that because Korail already oversees traffic control, track maintenance and rolling-stock repair for both services, the merger will not meaningfully improve safety.

Land Minister Kim Yun-duk said the government will pursue the merger as a way to strengthen the competitiveness of Korea’s rail industry. But integration aimed at achieving economies of scale must not devolve into inefficiency, bloated management or deteriorating service quality due to reinforced monopoly power. The government needs a thorough public discussion and a careful approach. A rushed merger carried out simply for the sake of integration could strengthen the railway union’s influence rather than improve public service, leaving passengers to bear the cost.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.