KTX and SRT Launch Integrated Operations... More Seats and 10% Fare Reduction

Integrated Business Management Division to Operate Temporarily for Up to 3 Years
KORAIL to Sequentially Introduce 31 New High-Speed Train Sets
Comprehensive Employment Succession of SR Staff by KORAIL

The Ministry of Land, Infrastructure and Transport announced on September 2 that it had completed the merger of Korea Railroad Corporation (KORAIL) and SR Corporation (SR), launching integrated operations of KTX and SRT high-speed trains starting from September 1.

The ministry explained that all related administrative procedures were completed, including approval for business transfer, changes to the rail business plan, and adjustments to the rail safety management system, following the Fair Trade Commission’s corporate merger review.

The Asia Business Daily DB

To ensure operational stability during the initial phase of integration, KORAIL has decided to temporarily establish an “Integrated Business Management Division” within its existing organizational structure, which will inherit SR’s work. This division will be given independent authority necessary for operating high-speed rail departing from Suseo. The Integrated Business Management Division is planned to operate for up to three years; however, after one year, the extent of implementation and organizational stabilization will be evaluated to determine the actual period of operation.

Regarding personnel, KORAIL will comprehensively take over employees belonging to SR, under the condition that all existing employment terms are maintained. Specific terms regarding employment, job functions, compensation, and welfare will be adjusted through future labor-management negotiations.

In addition, starting in 2027, KORAIL plans to sequentially introduce 31 new high-speed train sets (eight cars per set, 500 seats per set), which offer about 90 more seats per train compared to the current KTX-Sancheon trains. With the expansion of rail infrastructure, such as double-tracking between Pyeongtaek and Osong, the number of high-speed train operations and seat supply will also be increased accordingly.

Furthermore, the ministry will monitor the increased transport revenue resulting from the expanded number of seats, the cost savings from integration, and key financial indicators to ensure balanced financial soundness.

KTX fares will be reduced by 10 percent beginning this month to match SRT prices. Over the next three years, KTX fares will remain 10 percent lower, and member mileage accrual rates will be standardized at 5 percent.

To prevent any safety gaps that may arise immediately after integration, on-site inspections will be strengthened. The ministry, together with related organizations, will conduct joint inspections of engineer training readiness, the coupling and decoupling of multiple-unit trains, potential train delays, and other anticipated issues. An emergency response team will be on constant standby through the end of the year, and a comprehensive drill will be conducted this month to assess emergency response capabilities on the Suseo high-speed line.

Yoonduk Kim, Minister of Land, Infrastructure and Transport, stated, "From the outset of the integration, we will put the highest priority on safety through meticulous on-site inspections, and we will ensure that the public can use high-speed rail more conveniently and experience improved rail services."

This content was produced with the assistance of AI translation services.