[Manbo Jeongdam] "GTX-A Samsung Station Opening Considered for 2026... The Era of 'Railroad Trend'"

Interview with Lee Seong-hae, President of Korea Rail Network Authority
"Reviewing securing and operating transfer passage at Samsung Station Line 2"
"Underground project to be funded by bond issuance to cover time gap"
Growing interest in Korean railway technology from Japan, UAE, and others abroad
"Localization of railway technology to establish 'K-Rail' brand"

"The goal is to fully open the Seoul Metropolitan Area Express Railway (GTX) Line A by the end of 2028, but before that, we are discussing securing a transfer passage to Line 2 to start operations at Samseong Station."

Lee Seong-hae, Chairman of the Korea Rail Network Authority (hereafter the Authority), who marked his 100th day in office, revealed this during a meeting at Suseo Station in Seoul on the afternoon of the 27th of last month. He did not set a definite timeline as discussions with related organizations such as the Seoul Metropolitan Government are ongoing with various proposals. However, if the negotiations proceed as expected, he anticipated that stopping at Samseong Station could be possible around 2026. With the Dongtan?Suseo section of GTX Line A already opened and the Seoul Station?Paju Unjeong section scheduled to open within the year, he expressed a strong commitment to fully opening the remaining sections of the line.

Chairman Lee emphasized that profits gained from development above railway land, such as the Suseo Station area development project, should be reinvested into railway undergrounding projects. He stressed that the Authority should issue bonds to reduce the time gap between costs and revenue generation. He said, "Once the project site is determined and development plans are finalized, the Authority will issue bonds to build the underground replacement railway as soon as possible and recover funds from the profits of above-ground development over the next 10 to 20 years. This approach aligns with the principle of sharing development profits and creating a virtuous cycle." He explained that it is more reasonable to enhance the business feasibility of projects like station area development or railway undergrounding rather than relying on government budget allocations.

Lee Seong-hae, President of the Korea Rail Network Authority, is walking at Seoul Suseo Station and looking at a large mural. / Photo by Younghan Heo younghan@

He also showed strong determination regarding the export of Korean railway technology. Chairman Lee stated, "The Authority entered the African and European high-speed rail markets for the first time in 2022?2023. We are not content to remain a technology importer but aim to localize technology and establish the 'K-Rail' brand, which is an asset no other advanced railway country has experienced. We want to become a development model that developing countries aspire to learn from and follow."

Since his inauguration on February 19 this year, he has visited Suseo Station more than three or four times a week until the GTX Line A opening on March 30. For the interview on this day, he also chose Suseo Station to check GTX operation status. Depending on the schedule, he sometimes commutes between headquarters and Suseo Station two or three times a day. To endure this intense schedule, he manages his physical strength by climbing the apartment stairs every morning. The following is a Q&A with Chairman Lee.

- How do you feel about reaching your 100th day in office?

▲ It is an honor to have the opportunity to contribute to the development of the railway industry and the community by leveraging my 31 years of public service experience. Especially, the successful opening of GTX Line A in March has ushered in an era connecting major metropolitan hubs within 30 minutes, elevating the Authority’s status. The public’s expectations of the Authority are high, and accordingly, our sense of responsibility has grown. Moving forward, we will focus on strengthening field-oriented organizational capabilities to expedite the expansion of the first phase of GTX and successfully promote the second phase to actively alleviate traffic congestion in the metropolitan area. During my tenure as chairman, I will work with employees to continue opening the era of 'railway renaissance' and beyond to the 'railway mainstream.'

- It has been two months since the opening of GTX Line A. Is it operating well?

▲ As of May 24, the number of GTX Line A users exceeded 8,000. It has been about two months since the opening, but there is a fundamental limit to how quickly the numbers can increase. One key factor is that 'Samseong Station,' one of the stops, must open. Although the goal is to open by the end of 2028, if conditions allow tunnel construction earlier, we are considering laying tracks and installing transfer facilities to stop at Samseong Station. This means using only the transfer passage to Line 2 even if the entire complex facility is not completed. If this plan is realized, GTX could be used at Samseong Station as early as around 2026. We will seek maximum cooperation from the Seoul Metropolitan Government. Additionally, on June 29, the currently non-stop 'Guseong Station' is scheduled to open.

- What is the overseas response to GTX?

▲ Japanese media show great interest. They seem to think Korea has advanced in areas ahead of their own country. Japan has express trains, but they only skip a few stations and run at speeds of about 60 km/h. The Elizabeth Line in London, which opened two years ago and caused a sensation, runs at only 80 km/h except for the Heathrow Express section.

GTX is the first in Asia and is exportable. In this context, Etihad Rail from the Middle East’s United Arab Emirates (UAE) has visited Korea twice to thoroughly study GTX. The UAE has tasted many successes through economic cooperation with Korea. After launching satellites, they also launched rockets based on technology taught by KAIST. UAE students come to study engineering here. Currently, the UAE operates freight trains based on European technology and is preparing to order passenger trains, with plans to place orders within the year.

- What Korean railway technology has captivated foreign countries?

▲ Railways are a comprehensive product of various systems, including tracks, overhead lines, signaling, communication, control, and software. Among these, signaling and communication technology is highly regarded overseas. In the past, this technology was imported from Europe. For example, the Gyeongbu High-Speed Railway, which celebrated its 20th anniversary this year, involved a large payment to France. Now, as the signaling system needs upgrading, it is expected to cost several hundred billion won. In response, we developed our own signaling system. The Korea Railroad Research Institute, Rotem, and related small and medium enterprises localized the technology. It was installed on the Jeolla Line and underwent about two years of demonstration, confirming perfect operation. This year, we plan to apply this system to the Gyeongbu Line.

Furthermore, we plan to boldly pursue overseas projects through active technology transfer. The global railway market is worth about 256 trillion won annually and is growing every year, but Korea’s railway industry has only about a 1% share of the overseas market over the past five years. Expanding overseas entry is essential for the sustainability of Korea’s railway industry. The Authority plans to target the Eastern European market, including the Czech Republic and Ukraine, based on its entry into Poland last year through winning the design service contract for the Katowice?Ostrava section.

Lee Seong-hae, President of the Korea Rail Network Authority, is walking through Seoul Suseo Station while being interviewed by Asia Economy. / Photo by Younghan Heo younghan@

- The Authority said it would support railway undergrounding projects by issuing bonds. Is there capacity for this?

▲ The bonds issued by the Authority, a non-capital special corporation, boast national creditworthiness. We issue and repay bonds worth 2 to 3 trillion won annually. Although bond issuance was unsuccessful in 2022, it was a temporary phenomenon due to market conditions. We have never failed to raise funds when needed. While specific funding plans or costs have not yet been finalized, we expect to issue a significant amount of bonds once railway undergrounding projects proceed in earnest. Internally, we are preparing for such scenarios. Railway undergrounding projects are difficult to complete within 1?2, 5, or even 10 years. They require a long-term perspective of over 20 years. In that case, the Authority can issue long-term bonds based on national credit and act as a financial manager during the project period.

- What are the key factors for the success of railway undergrounding projects?

▲ It is neither desirable nor easy for the central government to bear a fixed portion of the costs for railway undergrounding projects. In fact, it is inefficient. Instead, a business structure must first be established where profits derived from above-ground development of railway land can finance the construction of underground replacement railways. The project should start only then. When people think of railway undergrounding projects, they often recall the Seoul Gyeongui Line Forest Trail, nicknamed 'Yeontral Park.' However, development should not be limited to the railway line itself but should encompass the surrounding area as well. Considering the normalization of urban structure is also important for a virtuous cycle. In the metropolitan area, many underdeveloped areas lie along railway lines, while clean new towns have developed outside these areas. However, geographically, railway lines are closer to city centers and have higher utilization. This needs to be improved.

Above all, the most important factor is a 'productive plan.' Simply put, the project should start only after confirming that above-ground development will secure profits exceeding the cost of constructing the underground replacement railway. However, there will inevitably be a time gap between phased investment and revenue recovery. The funds raised through bond issuance by the Authority will help bridge this gap. The Authority has already established related organizations to promote railway undergrounding projects and reorganized all departments into a 'project management (PM)' structure in April.

- You emphasized above-ground development. What is the best approach? Are there any examples?

▲ Right here at Suseo Station. Hotels, department stores, and officetels will be built on the parking lot in front of the station. Last year, the Authority recorded a net profit of 340 billion won, of which about 160 billion won came from the Suseo Station area development. This year, we expect inflows of about 70 to 80 billion won, though not as much as last year.

Since the station building itself has the highest value, high-density development with skyscrapers may be necessary in some cases. No country, including Singapore, Japan, or European nations, avoids station area development. Moreover, reinvesting profits gained from high-density station area development back into railways aligns with social justice. If a local government secures a large government budget to develop a station area, profits might concentrate on specific individuals, which is not economically rational.

- Do you have a health management routine amid your busy schedule?

▲ I exercise fairly regularly. Since becoming chairman, I have climbed the stairs at the official residence three times a week. The apartment is 33 floors above ground and 2 floors underground. I get up early, take the elevator to the basement, and then walk up to the 33rd floor, repeating this seven times. To make it more interesting, I hold two 6 kg water bottles while doing this. Many people are surprised when I tell them this (laughs). Before taking office, I used to run in the neighborhood. My home is in Suwon, Gyeonggi Province, near Manseok Park, where I ran about three laps.

Lee Seong-hae, President of the Korea Rail Network Authority, is walking in the park within the planned development site of the Seoul Suseo Station Transfer Center. / Photo by Younghan Heo younghan@

- Please share your determination regarding the future of railways and the Authority.

▲ Until now, the railway industry has focused on building a dense national railway network and providing timely transportation convenience. The opening of the high-speed railway in 2004 brought a revolutionary change in public awareness of railways and instilled pride in having an advanced high-speed transportation system. Twenty years later, the introduction of GTX this year has ushered in the '30-minute metropolitan commuting era,' bringing a transportation revolution that improves the quality of life for individuals. Going forward, technological advancement and resolving regional transportation disparities will be important values for balanced regional development. We plan to explore changes in urban spatial structure by developing railway stations as economic and living hubs. The future railway is expected to be not just a means of transportation but a new growth engine driving our society.

The Authority was established in 2004 alongside railway structural reforms and is celebrating its 20th anniversary this year. Initially, many doubted the future of the Authority, which had no capital, but now skepticism has disappeared, and positive expectations have grown. I am convinced that the core factor behind this change and growth is 'customer value.' The owners of the railway are the people, and the reason for the Authority’s existence is its customers. Therefore, we will strictly adhere to promised completion periods and do our best to improve the high-cost structure of railways. Through bold research planning and investment, we will continue to maintain leadership in future mobility.

◆ About Lee Seong-hae, Chairman of the Korea Rail Network Authority...

▲ Born in Seoul (1966) ▲ Civil Engineering, Seoul National University ▲ Master’s in Transportation Engineering, University of Leeds, UK ▲ Passed Technical Civil Service Exam (27th) ▲ Counselor at the Embassy of Korea in Nigeria ▲ Director of Road Policy Division, Water Resources Development Division, Busan Regional Land Management Office, Director of National Land Information Policy, Director of Technology Safety Policy, Director of Urban Policy, Director of Construction Policy Bureau at the Ministry of Land, Infrastructure and Transport ▲ Deputy Administrator of Saemangeum Development Agency ▲ Chairman of the Metropolitan Area Wide-area Transportation Committee