Gov’t withdraws plan to let private company run KTX lineThe Ministry of Land, Infrastructure and Transport said yesterday it will withdraw an initial plan to allow a private company to operate a new KTX line departing from Suseo, southern Seoul.
The ministry decided to turn the state-run KTX operator Korail into a holding company and set up a subsidiary to run the Suseo line with an aim to maintain public objectives of the railway businesses and improve efficiency.
The new subsidiary will be owned by Korail, but the holding company will invest 30 percent in it due to financial difficulties after the collapse of the Yongsan International Business District project.
Korail’s debt-to-asset ratio exceeds 400 percent. The rest of the cost needed for creation of the unit will come from some public funds. The Suseo KTX line will begin operation from 2015.