The integrated plan for high-speed railway (KTX·SRT), a campaign promise of President Lee Jae-myung, has resurfaced. The Ministry of Land, Infrastructure and Transport is currently reviewing the matter at the departmental level, and the Presidential Committee on Policy Planning is also discussing whether to include the issue in the national agenda.
According to the Ministry of Land, Infrastructure and Transport and others on the 15th, discussions on integration are resurfacing at a time when it has been 10 years since KTX and SRT were operated separately, focusing on improving the efficiency and public nature of the railway industry and reducing operational risks. This issue was put on hold during the Moon Jae-in administration, but it has returned to the policy table under the current government, leading to a louder voice from stakeholders, including railway unions and civil society.
President Lee Jae-myung promised during the presidential campaign that he would "integrate the bifurcated high-speed railways to increase the number of operations and expand convenience for the public." The background for promoting integration includes strengthening safety and minimizing redundant investments.
This is also a strong demand from the national railway labor union. The union stated on the 28th of last month, "We will make 2025 the year of integration." The union argues that "public interests cannot be restored just by promises" and is demanding the government to expedite policy implementation.
In preparation for the realization of integration, the Ministry of Land, Infrastructure and Transport has begun to thoroughly examine technical and institutional issues. Future policy directions will be determined according to the results of the task selection by the Presidential Committee on Policy Planning.
According to a study titled 'Basic Plan for the Development of the Railway Industry' ordered by the Ministry of Land, Infrastructure and Transport in 2021, the duplicated costs resulting from the separation of KORAIL, the operator of KTX, and SR, the operator of SRT, are analyzed to amount to 40.6 billion won annually. SR operates 22 out of 32 high-speed trains leased from KORAIL, and most maintenance, control, and ticketing systems are also entrusted to KORAIL or its subsidiaries.
The labor union argues, "The current system, which is structurally separated under the pretext of competition, is increasing inefficiency," adding that "we must return to the original goal of restoring public nature of the railway through integration," they assert.
The union also claims that integrating will expand train supply capacity and enhance user convenience. Currently, SRT operates from Suseo Station and KTX from Seoul Station, but once an integrated system is established, it would allow for an increase of 23 operations per day (7 from Seoul, 16 from Suseo) and approximately 15,000 additional seats. They argue that the 30% transfer discount applied to regular trains on KTX should be equally applied to SRT, and integration of the reservation systems can also improve public convenience.
The government is also reviewing not only the benefits of integration but also the realistic burdens it may bring. While analysis indicates that integration could save hundreds of millions of won in expenses, this includes conditions that are not easy to accept, such as restructuring SR's workforce. Within the Ministry of Land, Infrastructure and Transport, it is reported that they cannot avoid issues surrounding manpower and union risks during organizational restructuring.
Concerns about strike risks are particularly significant. Since its establishment, SR has never participated in a strike. In contrast, KORAIL is considered the public agency with the greatest social impact during strikes.
In December of last year, KORAIL's union went on a general strike over wage negotiations. The union has been repeating work slowdowns and strikes annually since 2019. According to KORAIL, the cumulative damages from 2020 to 2023 amount to 11.5 billion won. There are concerns that, considering indirect damages such as public inconvenience, the repercussions could be even greater. Therefore, there are worries that "the strike risk of KORAIL could transfer to SR if both companies merge, potentially paralyzing the entire high-speed rail operation."
On the other hand, the SR union has made clear its opposition to integration early on. The SR union has previously stated that "the merger with KORAIL lacks justification and disregards public benefits," expressing its discontent. They argue that since SR returns more than 80% of its total revenue to the state and is designated as a public institution, fears of privatization have been eliminated, and the justification for integration has weakened.
Meanwhile, experts are suggesting maintaining practical benefits through gradual improvements like "expanding cross-operation" rather than integration. Allowing SRT to extend to Seoul Station and KTX to Suseo Station could enhance public convenience and reduce redundant investments, they propose. However, implementing this is currently difficult due to the existing track allocation structure.
Kang Kyung-woo, a professor in the Department of Transportation and Logistics at Hanyang University, said, "Discussions on the integration of KTX and SRT have reemerged as a political battleground with each change of administration, indicating the political waste of these discussions." He further stated, "Policies should be evaluated based on the original goals of cost reduction and improvement of consumer service, which were intended in establishing a competitive system."
He added, "Equity issues can be addressed through revenue readjustment, and simply pushing for integration on the grounds of being 'unfair' may obscure the policy's intent," emphasizing that policy directions should be determined after objectively assessing the performance of both companies and consumer welfare.