[2026 Parliamentary Audit] KTX Fares Frozen for 15 Years to Rise? KORAIL Chief: "Considering a Fare Hike Next Year"

People Power Party: "Promoted discounts, then deceived the public"
Democratic Party of Korea: "Cannot raise fares unilaterally due to legal cap"

Kim Taeseung, president of Korea Railroad Corporation (Korail), said on the 13th that the possibility of raising KTX fares next year was under consideration, adding, "We will consider an increase in line with the inflation rate." He also said the temporary fare discounts introduced following the integration of the two organizations would be limited to three years, explaining, "Our financial situation is poor, so we cannot continue them indefinitely."

At a parliamentary audit held at the National Assembly that day, President Kim was asked by Rep. Kim Eun-hye of the People Power Party whether KTX fares would rise next year. He replied, "Fare increases are decided by the Ministry of Land, Infrastructure and Transport, so we will follow its decision," and made the remarks above.

Kim Taeseung, president of Korea Railroad Corporation (Korail), answers lawmakers' questions during a parliamentary audit held by the National Assembly's Land, Infrastructure and Transport Committee on the 13th. Yonhap News Agency

According to Rep. Kim, Korail said in its mid- to long-term financial management plan submitted to the Ministry of Economy and Finance that it would review fare adjustments every year. Although it had promised to offer a 10% fare discount for three years after its integration with SR, Korail also intends to consider each year whether to raise the base fare.

Rep. Kim criticized Korail for reviewing fare increases after heavily promoting the integration discount, saying this amounted to false and exaggerated advertising and deceived the public.

President Kim responded, "We will continue the 10% discount because it is a promise we made to the public," but added, "KTX fares have not risen once in the past 15 years, putting significant financial pressure on us."

Ruling party lawmakers countered by pointing out that fare increases are capped by the government. Rep. Jeon Yong-gi of the Democratic Party of Korea said, "Fares cannot exceed the government-set cap," adding, "The reason prices have been frozen for 15 years is not that SR was made to compete with Korail; it's because the law prevents fares from being raised unilaterally."

Citing lower fares between Seoul and Busan and expanded seating as achievements of the integration, Rep. Jeon told President Kim, "You should explain those achievements so the public does not misunderstand them."

Independent Rep. Jang Kyung-tae supported the point that Korail cannot raise fares at its own discretion, saying, "The Seoul Metropolitan Government cannot arbitrarily raise subway fares or taxi fares, can it?"

Rep. Jang went on to say, "Even during the COVID-19 pandemic, SR operated profitable routes and made a profit while Korail suffered huge losses," adding, "That is why integrating KTX and SR was a very desirable step."

KTX fares have been frozen since 2011, marking 15 years without an increase. Meanwhile, operating costs, including electricity and labor expenses, have risen, and Korail has called for fare adjustments. Korail's cumulative deficit currently exceeds 20 trillion won.

In response to Rep. Kim's question about why the fare reduction policy would apply for only three years, President Kim said, "We are returning the benefits of the integration to the public over three years," adding, "Our financial situation is poor, so it will be difficult to continue the policy."

According to Korail, fare discounts totaled about 22.8 billion won during the first month after the integration, equivalent to about 280 billion won on an annual basis.

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