Electricity Costs Surpass Operating Losses
Junho Jung: "Expand Solar Power and In-House Production"
Junho Jung, member of the Democratic Party of Korea.
As Korea Railroad Corporation (KORAIL) struggles under the burden of massive electricity bills, it has been revealed that the company’s renewable energy production accounts for only 0.6% of its maximum potential, raising concerns about increased financial pressure.
According to data submitted by Junho Jung, a member of the Democratic Party of Korea representing Buk-gu Gap in Gwangju, KORAIL paid a staggering 2.2199 trillion won in electricity bills over the past five years (from 2021 to June 2025).
This figure exceeds KORAIL’s total operating loss for the same period (2.0598 trillion won), clearly demonstrating that electricity costs are the main driver of the company’s deficits. As of June this year, KORAIL’s total debt has nearly reached 21.3106 trillion won, making the need for financial soundness urgent.
The problem lies in the trend of rising electricity rates and KORAIL’s unique rate structure. As of July this year, KORAIL’s electricity rate stood at 221.6 won per kWh, a sharp increase of 61.4% compared to 2021. Furthermore, KORAIL does not benefit from off-peak discounts and is subject to industrial rates, resulting in electricity costs approximately 23% higher than those paid by other public enterprises. This has led to calls for urgent, realistic self-saving measures in addition to negotiations with Korea Electric Power Corporation (KEPCO).
Amid this crisis, KORAIL’s own renewable energy production has made little progress. The company currently produces 3 GWh of renewable energy, which is only 0.6% of its planned maximum production capacity of 485 GWh. Critics argue that this figure runs counter to the era’s demands for long-term cost reduction and a transition to environmentally friendly business practices.
However, there is potential. According to KORAIL’s own analysis, if all available sites, buildings, parking lots, soundproof walls, and tracks are fully utilized, the company could produce up to 485 GWh of electricity annually. Applying KORAIL’s self-production electricity unit cost (209 won), this could result in annual savings of approximately 101 billion won. Furthermore, if solar power generated in the southwestern region is introduced for railway operations, an additional 12 GWh of electricity could be produced annually, saving another 2.6 billion won.
Assemblyman Jung emphasized, “Since the government’s national agenda under Lee Jaemyung includes the establishment of an RE100 industrial complex in the southwestern region and the expansion of renewable energy production, KORAIL must strengthen its own renewable energy production and enhance its connection with renewable energy sources in the southwest. Self-produced renewable energy can deliver the dual benefits of addressing both the company’s deficits and climate and environmental issues.”
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