KTX Service from Incheon and Suwon Delayed until 2025... Heo Jong-sik Blames "Bullying by Vehicle Manufacturer Hyundai Rotem"

Direct Connection Project Vehicles from Incheon and Suwon to be Ordered Next Month... Delivery Deadline November 2026
Last Year's Bid Failed, Hyundai Rotem Demanded 7.07 Billion KRW per Unit

KTX-Eum high-speed train manufactured by Hyundai Rotem [Provided by Hyundai Rotem]

[Asia Economy Reporter Park Hyesook] The high-speed train orders for the Incheon-origin KTX and Suwon-origin KTX have been delayed, pushing the opening of these lines from 2025 to 2027.

According to data received by Rep. Heo Jongsik (Incheon Dong-gu Michuhol-gu Gap) of the National Assembly Land, Infrastructure and Transport Committee from Korea Railroad Corporation, the railroad company plans to announce a bid next month for 16 high-speed train cars for the Incheon-origin KTX and Suwon-origin KTX.

However, since the delivery deadline for the trains stated in the announcement is confirmed to be November 30, 2026, it will be difficult for the Incheon-origin KTX to open as originally planned in 2025, and operation will be possible at the earliest from 2027.

Previously, the Ministry of Land, Infrastructure and Transport announced in February 2018 when the basic plan was notified that the line would open by the end of 2024.

Rep. Heo claimed that the delay in the Incheon and Suwon-origin KTX projects was due to Hyundai Rotem not bidding on the high-speed train order placed by the railroad corporation last year, citing the low quantity and price.

At that time, the railroad corporation's order price was 5.14 billion KRW per car, but Hyundai Rotem proposed 7.07 billion KRW, and even when the railroad corporation raised the price to 5.49 billion KRW per car in the third bid, Hyundai Rotem did not accept it.

Rep. Heo pointed out that since the high-speed train manufacturer is a single company, the monopoly's drawbacks of setting high prices and refusing supply when the quantity is low were clearly revealed during the bidding process for the Incheon and Suwon-origin KTX vehicles.

He criticized, "Because of the private company's profit, the state cannot keep its promise to citizens, and this is the monopoly company's abuse of power against the state," adding, "Hyundai Rotem's behavior is a factor that undermines the nation's railroad competitiveness."

According to Rep. Heo's office, Hyundai Rotem also failed to bid three times in the 2020 bid for 30 high-speed cars (EMU260) for the Seohae Line and Donghae Line, and in December last year, the unit price and quantity were increased from 3.11 billion KRW to 4.62 billion KRW and from 30 cars to 84 cars, respectively, leading to a contract.

There were also several cases where supply was not delivered on time despite signing vehicle contracts. Starting with KTX-Sancheon in 2006 and up to KTX-Eum (EMU-260) in 2016, only 2 out of 7 projects met the delivery dates.

The delay penalties Hyundai Rotem paid for 4 contracts that missed delivery dates amounted to 179.4 billion KRW, and for the distributed power high-speed train (EMU-320, 16 cars) contracted in 2016, the delivery deadline was March 2021, but production has been delayed and final delivery is expected in December 2023.

Rep. Heo emphasized, "The practice of causing failed bids alone and winning projects through private contracts has been repeated for over 10 years, and the government has no choice but to be led by the demands of the monopoly operator," adding, "The government must accurately understand the drawbacks and side effects of monopoly businesses and prepare measures to prevent recurrence."