[2026 Parliamentary Audit] First Audit Since High-Speed Rail Merger... Ruling Party: "KTX Ridership Up" vs. Opposition: "Promised Fare Cuts, Now Considering Hikes" (Comprehensive)

KORAIL President Kim Taeseung: "Considering raising fares in line with inflation next year"
10% discount to remain for three years... Ticket prices may rise if base fares increase

At an October 13 parliamentary audit by the National Assembly's Land, Infrastructure and Transport Committee of Korea Railroad Corporation (KORAIL) and Korea National Railway, ruling and opposition lawmakers clashed over the effects of merging KORAIL and SR. The audit was the first since the two institutions merged last month, and lawmakers scrutinized a range of long-standing issues, including fare policy, safety concerns and financial improvements.

The separate operation of KORAIL and SR's high-speed rail services began alongside efforts to introduce private-sector competition in the rail industry under the Lee Myung-bak Administration. The competition between KTX and SRT began in earnest in 2013, when SR was established as a public operator under the Park Geun-hye Administration. The situation changed under the current administration, as President Lee Jae-myung pledged to "strengthen the public role of railways." The two organizations merged in September.

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

Opposition lawmakers criticized the merger schedule as having been accelerated too hastily. Yoo Sangbeom of the People Power Party said, "The merger, originally scheduled for 2027 or the end of this year, was suddenly brought forward to September after the president instructed the Cabinet in March to 'proceed as quickly as possible.' It is problematic that the schedule was shortened without sufficient objective verification or research." His party colleague Eom Taeyoung also said, "As the competition system was abolished after 13 years, there was only one public hearing," adding, "A monopoly operating system was created without a proper assessment, simply because it was a presidential campaign pledge."

Ruling party lawmakers, by contrast, defended the merger by pointing to the contradictions of the separate operating system. Lee Yongseon of the Democratic Party said, "The competition system introduced under the Lee Myung-bak Administration was a half-measure: it handed over only the profitable, prime high-speed rail routes while leaving KORAIL with the public burden of loss-making businesses such as conventional rail and freight services. This is a process of correcting an abnormal situation by addressing the side effects of separate operations." His party colleague Yoon Jongkun also said, "The very premise of maximizing efficiency through competition in railways, which are a public good, was wrong." He added, "Contrary to the opposition's claim, this was not done at the request of the Korean Confederation of Trade Unions. Public discussion had been underway since the Moon Jae-in Administration, and the merger was carried out in substance because it offers major benefits: strengthening the public role of railways, reducing duplicated costs and unifying safety management."

Fellow Democratic Party lawmaker Yeom Taeyoung said, "In the first month of unified operations, average daily ridership rose by 12% and the public's transportation expenses fell by KRW 22.8 billion," calling this "an improvement in convenience and cost savings that people can feel." Independent lawmaker Jang Kyungtae said, "When KORAIL suffered enormous losses during the COVID-19 pandemic, SR was making a profit by operating lucrative routes," adding that "merging the two organizations is a very desirable step."

Opposition: "A token three-year discount is populism" vs. ruling party: "Fares cannot be raised at will"

Kim Taeseung, president of Korea Railroad Corporation (KORAIL) (second from left in the front row), answers questions from Rep. Jung Heeyong of the People Power Party about deficiencies in expanding KORAIL's reservation system during a parliamentary audit held by the National Assembly's Land, Infrastructure and Transport Committee on the 13th. Yonhap News Agency.

The opposition also questioned the effectiveness of a temporary fare reduction. Kim Eunhye of the People Power Party criticized KORAIL's plan to "cut KTX fares by 10% for three years," saying, "This ultimately means fares will go back up after three years. It is an irresponsible move that takes credit for the discount only through the latter half of the Lee Jae-myung Administration's term and leaves the next administration to deal with the consequences." Her party colleague Kim Miae said, "During our office's inquiry, they first said the 10% fare reduction would last until 2029, then changed that to 2028. They have also been inconsistent, saying they may consider raising base fares from next year to reflect inflation." She added, "Telling the public that fares could be raised again at any time depending on the circumstances is deceptive." Fellow party lawmaker Jeong Dongman said, "KORAIL's debt ratio is expected to exceed 300% this year, and the 10% fare cut will also leave it facing an annual revenue shortfall of KRW 250 billion."

Ruling party lawmakers countered that fare increases are controlled within a government-set ceiling. Democratic Party lawmaker Jeon Yonggi said, "Fares cannot exceed the government cap. Prices have been frozen for 15 years not because of competition with SR, but because the law does not allow KORAIL to raise them on its own." Independent lawmaker Jang Kyungtae supported the point that KORAIL cannot unilaterally raise fares, saying, "Just as the Seoul Metropolitan Government cannot raise subway fares or taxi fares at will, the same applies to rail fares."

KORAIL President Kim Taeseung explained the fare reduction, saying, "I thought the right thing to do was to first return to the public, through fare discounts, the benefits generated by integrating high-speed rail services." He added, "Since this is a promise we made to the public, the 10% discount will remain in place for three years. However, given our difficult financial situation, we will consider raising fares in line with inflation," and, "The Ministry of Land, Infrastructure and Transport decides on fare increases, so we will follow its decision." This suggests that KORAIL intends to maintain the existing 10% discount even if it raises base fares, meaning the actual fares passengers pay could ultimately increase. KTX fares have been frozen for 15 years, since 2011. Meanwhile, operating costs such as electricity and labor have risen, and KORAIL has called for fare adjustments. Its cumulative deficit now exceeds KRW 20 trillion.

Addressing concerns over delays in selling land in the Yongsan Station area, KORAIL President Kim Taeseung said, "We will make use of land on which there is no disagreement between the government and the Seoul Metropolitan Government," adding, "We will improve our financial structure by selling at least part of the former railway maintenance depot site in Yongsan by 2029." KORAIL had previously stated in its financial management plan for public institutions, submitted to the Ministry of Economy and Finance, that it planned to repay debt using proceeds from the sale of the Yongsan site, among other sources.

"149-minute wait just to book Chuseok tickets"... Criticism over seat shortages and alleged revolving-door favoritism

In addition to the high-speed rail merger, the audit raised safety issues, ticket-booking chaos and allegations of favoritism.

Democratic Party lawmaker Kang Deukgu referred to the worker's fatal accident at Uiwang Station on October 3, saying, "Two people were assigned to the night shift as required, but under the manual, one of them moved to the place where the train was due to arrive. At the moment of the accident, the worker who died was alone at the scene." He added, "Just because two people are listed as being on the same shift on paper does not mean they are effectively working as a team of two." He called for "a practical staffing and operations manual to ensure that workers are not left alone."

Fellow Democratic Party lawmaker Jeong Ilyoung criticized the shortage of high-speed rail tickets. "Although the total number of seats has increased following the merger, finding tickets for weekends and rush hours - when the public most feels the difference - is still like a battle," he said. "Fundamental measures to increase seat supply, such as adding more train services, are urgently needed, beyond simply improving the system."

People Power Party lawmaker Jung Hee-yong raised the "connection delays" that disrupted ticket bookings for the Chuseok holiday, saying, "The maximum wait to book a ticket reached 149 minutes, even longer than last year's 116 minutes. It is a serious problem that the project was delayed by as much as eight months because KORAIL failed to check technical compatibility in advance, even after investing KRW 4.6 billion to expand its servers." Democratic Party lawmaker Heo Young said of the increase in train services after the merger, "The number of seats rose by 15,000 a day on weekdays, but the increase was concentrated on the Gyeongbu and Honam corridors. No additional trains were allocated to the Gangneung, Jungang or Donghae lines, and the number of standing passengers is surging."

Allegations of a revolving-door cartel involving former public institution employees were also raised. Democratic Party lawmaker Moon Jeongbok said, "There are indications that a former official who left under a cloud conspired with an internal employee to alter the specifications during the design of a ventilation control system for sections of the Korea National Railway network in the Seoul metropolitan area." She said it was "a cartel that changed the standards to steer work to a particular company, Honeywell," and called for an audit by the Ministry of Land, Infrastructure and Transport. Fellow Democratic Party lawmaker Yoon Jongkun said, "Electrical and communications executives who had signed contracts with inspection firms at places such as KORAIL's Busan-Gyeongnam Regional Headquarters are moving to executive positions at those firms immediately after retiring. Then, a year later, the firms win work worth billions of won from the very departments where those executives used to work. This is a revolving-door collusion taking place in plain sight."

There were also allegations that KORAIL had given a major corporation exclusive rights by introducing a coffee pre-order service in its Korail+ mobile app. Democratic Party lawmakers Yoon Jongkun and Mo Gyeongjong took issue with the bidding process, saying, "After making prior contact with SPC Group affiliate Sectanaine, KORAIL allowed the company to submit an extensive proposal as the sole bidder on the day the tender was announced." They called it "effectively granting a major corporation exclusive rights as a special favor" and demanded a thorough investigation and audit. KORAIL President Kim Taeseung responded, "I think there are aspects of this that seem questionable," adding, "We will investigate thoroughly."

Democratic Party lawmaker Ahn Taejun questioned the alleged "Lotte name-switching" involving the Yeongdeungpo private-investment station, a state-owned property. He said, "The existing operator, Lotte Station, canceled its own renewed use permit, then reopened the bidding and cut the annual usage fee by as much as KRW 10.3 billion." He called it "an act of breach of trust by Korea National Railway that changed only the name to Lotte Shopping and cost the state hundreds of billions of won in revenue."

Calls to improve access for passengers with reduced mobility and expand rail facilities in underserved areas

A KTX train is stopped at Seoul Station. Photo by Cho Yongjun.

Insufficient consideration for underserved areas and passengers with reduced mobility also came under scrutiny.

Democratic Party lawmaker Yoon Jongkun said, "There have been 33 cases of elevators being out of service for at least a day, and many stations still lack lifts for wheelchair users to board and alight." He called for funding to ensure mobility rights for older adults and people with disabilities.

Fellow Democratic Party lawmaker Jo Incheol also said, "Delays in boarding and alighting by older adults due to gaps between platforms and train floors are leading to delays across the entire train service." He called for platforms to be upgraded to high-platform designs, which allow passengers to board directly without stairs because the platform is level with the train floor, as on subways. Fellow party lawmaker Heo Young pointed to the decline in reserved seats for older passengers on Mugunghwa trains and the digital exclusion of older adults when booking tickets, and called for measures to address both issues.

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