South Korea will integrate its two high-speed rail systems, KTX and SRT, by 2027 under a government-led restructuring plan that will reunify operations under state-run Korail, officials said Monday.
The KTX and SRT merger plan fulfills a long-standing presidential campaign pledge and responds to repeated demands from the national railway union. Once completed, the move will dismantle the competitive structure introduced in 2016 with the launch of SRT and restore Korail’s monopoly over high-speed rail operations for the first time in more than a decade.
According to government and rail industry officials, the Ministry of Land, Infrastructure and Transport is preparing to announce a detailed integration road map later this year. The plan will begin with operational integration, followed by a full institutional merger in which Korail will absorb SR, the state-owned operator of SRT, by 2027.
As part of the initial phase of the KTX and SRT merger plan, cross-operations are expected to begin as early as next year. This would allow KTX trains to depart from Suseo Station, currently used exclusively by SRT, while SRT trains would operate from Seoul Station and Yongsan Station, traditionally served only by KTX. The government also plans to integrate the two ticketing systems into a single booking platform, enabling passengers to purchase tickets for both services through one app.
A government official said the approach is designed to minimize disruption while laying the groundwork for full integration. “We plan to begin with operational integration first, while preparing for a complete institutional merger so the process is finished by 2027,” the official said.
SRT was established in 2013 under the Lee Myung-bak administration to introduce competition into the rail sector and began commercial operations in late 2016. However, successive administrations, including those led by former President Moon Jae-in and current President Lee Jae Myung, pledged to reunify the systems, citing inefficiencies and passenger inconvenience.
The railway union has argued that running KTX and SRT separately generates more than 40 billion won ($27.2 million) in redundant annual costs and fragments services. Union leaders claim integration could allow more efficient scheduling and supply up to 16,000 additional seats per day, a view shared by Korail management.
However, the KTX and SRT merger plan has drawn mixed reactions from experts. Critics warn that restoring a monopoly could reduce competition and weaken consumer benefits.
“Re-establishing a monopoly in the rail sector could lead to higher fares or lower service quality,” said Kim Joo-young, a professor of transportation planning at the Korea National University of Transportation. “A thorough cost-benefit analysis is essential before finalizing the merger.”
Other specialists question claims that integration alone will significantly ease seat shortages. Park Min-kyu, a professor of railway operations at Halla University, said capacity constraints, rather than management structure, are the main issue.
“Supplying thousands of additional seats is theoretical unless track capacity and rolling stock are expanded,” he said.
Korail and SR ordered 31 next-generation high-speed train sets in 2023, scheduled for phased delivery starting late next year. Major infrastructure upgrades aimed at eliminating bottlenecks on key sections of the network are also underway. Some experts argue the government should reassess the KTX and SRT merger plan after these improvements are completed.
Concerns have also been raised about labor relations. Industry officials note that during past rail strikes, SRT continued operating even when KTX services were disrupted, helping limit passenger inconvenience.
“If the systems are merged, passengers may face greater disruption during strikes, and union leverage will increase,” one industry official said.
Despite the debate, the government appears committed to moving forward, signaling that the KTX and SRT merger plan will reshape South Korea’s high-speed rail landscape by the end of the decade.
