‘3 Consecutive Years of Profitability’ Railroad Corporation Achieves Highest Profit Since Establishment Last Year

The Korea Rail Network Authority has continued profitable management for three consecutive years, achieving the highest profit since its establishment last year.

On the 21st, the Rail Network Authority announced that it realized a net profit of 311.4 billion KRW in last year's financial results.

This amount increased by 194.6 billion KRW (167%) compared to the net profit of 116.6 billion KRW in 2022, marking the highest profit since the organization's launch in 2004. The Authority's profitable management has been sustained for three consecutive years since 2021.

The recent profitability is interpreted as a result of focusing on railway asset management aimed at increasing revenue through utilizing state-owned properties and developing station areas, rather than relying on track usage fees received from railway operators such as Korail and SR.

In fact, in the high-speed railway business, a major project of the Rail Network Authority, operating profit decreased due to increased track maintenance costs following the implementation of precise safety inspections and the reflection of amortization expenses for high-speed railway facility management rights.

On the other hand, the Authority explained that asset management businesses such as leasing state-owned properties and station and station area development, which are independent revenue-generating projects, generated an operating profit of 154.5 billion KRW, offsetting the decrease in high-speed railway operating profit.

In particular, the Rail Network Authority not only generates revenue through leasing and station area development projects utilizing railway assets but also places emphasis on realizing social value through projects such as railway daycare centers, startup lounges, and Seomseomoksu in idle spaces at railway stations.

Additionally, the Authority emphasized that efforts to secure financial soundness, such as using revenue generated from track usage fees and asset management to repay bonds issued for high-speed railway construction, have resulted in the completion of a healthy financial structure.

Lee Seong-hae, Chairman of the Rail Network Authority, said, “The achievement of three consecutive years of profitability is the fruit of all employees' efforts to meet profit and loss targets for each business,” adding, “The Rail Network Authority will continue to expand facility investments in both high-speed and conventional railway sectors with a sound financial structure.”