Lawmakers question process for merging South Korea’s Korail and SR

South Korea is planning to merge state rail operator Korail with SR, which runs a competing high-speed train service.

At a parliamentary audit on October 13, lawmaker Eom Tae-young questioned whether the merger had been properly assessed and carried out.

He said no objective report evaluating 13 years of competition had been submitted to parliament, and Korail had told him it did not commission a feasibility study because the merger was a government policy decision.

Eom also questioned plans to cut fares by 10%, given that public railway companies are running deficits, and warned that passengers could face problems if the merger leaves them with fewer alternatives.

He said the timetable had been brought forward and asked what would happen if promised changes to fares and services did not go well.

Korail chief Kim Tae-seung said the merger could benefit the public and help develop the rail industry, adding that discussions had become simpler and issues were resolved quickly.

South Korea’s transport ministry and Fair Trade Commission are due to jointly monitor fare and service plans over the next three years.