Rail merger plan sparks dispute between KORAIL, SR

Korea’s plan to merge its two high-speed rail operators, Korea Railroad (KORAIL) and SR Corp., has turned into a dispute between parties, with the government and KORAIL touting consumer benefits while SR questions the data behind those assertions. SR, the state-run operator of SRT services from Suseo Station in Seoul to 29 destinations nationwide, argues that the merger would harm the country’s railway industry by eliminating competition between the two operators. KORAIL, together with the Ministry of Land, Infrastructure and Transport, is moving ahead with preparations for the merger. The operator of KTX services, which serve 77 stations across eight routes, maintains that integration would deliver greater benefits to passengers. Since Dec. 10, the SR labor union has issued a series of statements condemning the government’s merger roadmap. Workers at the company, established in 2016, say competition between KORAIL and SR has been a key driver of service improvements and industry growth, warning that a merger would undermine fair market competition. The union also said that the chr