Korail "5 Trillion Won Needed to Replace 20-Year-Old KTX... Government Support Crucial"

Presentation at the Winter Academic Conference of the Korean Academic Society of Business Administration

KORAIL has called for government support to purchase replacement vehicles as the replacement period for KTX-1 trains approaches.

On the 19th, KORAIL gave a presentation titled "Introduction of Replacement Vehicles Due to the Arrival of KTX Expected Lifespan and the Role of the Government" at the 69th Winter Academic Conference of the Korean Academic Society of Business Administration held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul.

Heo Soon, Head of Management Research at Korail, is giving a presentation on the topic "Introduction of Replacement Vehicles and the Role of the Government Due to the Arrival of KTX Expected Lifespan" at the "69th Winter Academic Conference of the Korean Academy of Management" held on the 19th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Provided by Korail

KORAIL explained that the KTX-1 has become aged after 20 years since its first operation in 2004. Although its design lifespan is 30 years, considering that it takes more than 10 years from manufacturing to actual deployment, replacement work must begin now.

In particular, 46 KTX-1 trainsets currently account for 73% of the daily high-speed rail transportation volume, so if replacement is delayed, disruptions to nationwide railway operations are inevitable.

The replacement cost alone is around 5 trillion won. KORAIL emphasized that the government should provide financial support and increase investment in railway safety.

KORAIL also mentioned the issue of operating deficits. With the increase in electricity rates, operation of unprofitable lines due to government policies, and the burden of track usage fees, debt has exceeded 20 trillion won. Government support is also necessary for management normalization.

Heo Soon, head of KORAIL's Management Research Department, said, "We hope that discussions on government support related to KTX replacement will become more concrete through this academic conference presentation."