[Asia Economy Reporter Kim Min-young] The Korea Railroad Workers' Union under the Korean Confederation of Trade Unions has announced a rally opposing "railroad privatization," while the government stated that it has "no intention to promote railroad privatization."
Kang Hee-up, Director of the Railroad Bureau at the Ministry of Land, Infrastructure and Transport, explained at a back briefing related to the railroad union held at the Ministry's press room in the Sejong Government Complex on the 28th, "The participation of private manufacturers in railroad vehicle maintenance is part of safety measures following the KTX derailment accident and is unrelated to privatization."
He added, "Earlier this year, after the KTX accident, there was debate over whether the issue was with the manufacturer or with Korail, which was responsible for maintenance," and "To establish a virtuous cycle of technology between vehicle manufacturing and maintenance, 30% of manufacturers in Europe also participate in maintenance."
The union claims that if the opening of the railroad vehicle maintenance market to the private sector included in President Yoon Seok-yeol's government tasks, the transfer of control rights to the Ministry of Land, Infrastructure and Transport mentioned by Minister Won Hee-ryong, and the transfer of railroad maintenance work to the Railroad Corporation proceed in earnest, railroad privatization will rapidly advance.
In response, the Ministry of Land, Infrastructure and Transport drew a clear line, stating, "The participation of private manufacturers in railroad vehicle maintenance is part of safety measures following the KTX derailment accident to establish a virtuous cycle of technology between vehicle manufacturing and maintenance and is unrelated to privatization."
In particular, SR is reviewing a plan to entrust maintenance to vehicle manufacturers while ordering 14 SRT trainsets this year, which is considered inevitable due to Korail’s insufficient vehicle depot capacity, the ministry added.
The transfer of control rights and maintenance work is a matter to be reviewed in the mid-to-long term after collecting opinions from related agencies. Even if pursued in the future, it would only be a change of jurisdiction from the operating agency Korail to the facility manager, the Railroad Corporation, and is unrelated to privatization, the ministry explained.
Regarding the union's claim that SR is preparing to expand SRT operation routes in coordination with the Ministry of Land, Infrastructure and Transport to solidify a competitive system, the ministry denied, saying, "There has been no consideration to expand SRT operations to general lines such as the Jungang Line."
The ministry emphasized that railroad integration is being discussed in the governance subcommittee, including representatives from the Korail and SR unions, and that a final conclusion will be drawn based on the discussion results. The ministry stated, "Operating SRT on high-speed rail connection lines (Jeolla, Gyeongjeon, Donghae lines) needs to be reviewed from the perspective of expanding the benefits of high-speed rail services, and various alternatives are being considered."
Regarding the union's claim that railroad deficits and debt increases are not due to reckless management but rather due to decreased demand caused by COVID-19 and increased public enterprise personnel, the ministry said, "Unavoidable deficit factors such as COVID-19 will naturally be taken into account," but also mentioned, "Since Korail's debt reached 18.1 trillion won last year, consideration for management efficiency is necessary."
Meanwhile, about 3,500 members of the railroad union are scheduled to march from Seoul Station to the presidential office in Yongsan-gu, Seoul, from 2 p.m. today, demanding opposition to railroad privatization and the integration of Korail and SR.
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