Korail's monopoly on train repairs is challenged

SRT in Seoul. [YONHAP]

The CEO of the company that runs Korea's Super Rapid Train (SRT) system questioned the monopoly held by Korea Railroad (Korail) on train repairs and maintenance after a power cut led to canceled trains on Dec. 30.

“We can’t guarantee railway safety with the current repair and maintenance system that separates construction and management,” Lee Jong-kook, CEO of SR, said Thursday at a press conference.

SR is a subsidiary of Korail, which owns 41 percent of its shares.

“The power cut that happened at the Tongbok Tunnel [last month] was the result of subpar materials and poor management during the construction process,” Lee said.

High-speed trains between Cheonan-Asan in South Chungcheong and Pyeontaek, Gyeonggi, were suspended after a non-woven fabric fell on a power line in the Tongbok Tunnel, shutting off power

Some pieces of non-woven fabric from the tunnel fell onto the tracks and were sucked into passing SRT trains, damaging the trains' electric systems.

While power was restored in five hours, schedules were impacted for two days. Many SRT trains needed repairs.

The glitch in the tunnel also affected Korail’s KTX train service.

On Jan. 1, SR announced that it would compensate passengers and people with reservations. Some 100,000 were affected by the accident, and the compensation could cost the company around 13 billion won.

Korail has had a monopoly on the repair and maintenance of trains for nearly 20 years under the Railroad Industry Development Act. Subways are not included.

Korail’s monopoly was supposed to be more efficient and safe, although pressure from the railroad's labor union was also a factor in it being awarded.

SR CEO Lee also demanded that KTX rent some of its reserve trains to his company for SRT routes.

“As it is government policy to have every train starting from Seoul Station to be run by KTX and those starting from Suseo by SRT, the support of Korail’s trains will solve many problems,” Lee said. “It would be win-win for all.”

In addition to changing Korail’s monopoly on repairs and maintenance, Lee promised to push for other kinds of independence for his company, including a separate reservation system.

Other Korail subsidiaries including Korail Networks handle the current reservation system.

"For the convenience of customers and the development of the railroad industry, we need to make efforts to change things one at a time,” Lee said.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]