KTX privatization delayed to after general election

By Cho Jae-hyon

The government said Monday that it will start procedures to pick a private company to operate KTX bullet trains after the April 11 general election.

The government has said Korail operates KTX and other train services inefficiently, while Korail argues that if a private firm takes over operations, passengers will face a steep rises in fares.

The Ministry of Land, Transport and Maritime Affairs said that it will select a preferred negotiator to operate the KTX by the end of July. The selected company will operate trains departing from Suseo, southern Seoul, for both Busan and Mokpo from 2015.

“We’ve decided to adjust the pace of the project. But we will definitely press ahead with the plan after the general election. We will pick the preferred negotiator by July,” said Kim Han-young, director general of the ministry’s comprehensive transport policy.

Kim said the government will hold talks with Korail and its trade union to narrow differences on the plan to introduce competition in the monopoly.

A new KTX line between Suseo and Pyeongtaek, Gyeonggi Province, is currently under construction. When the line is completed in 2015, a private company will operate KTX trains from Suseo to Busan on the Kyungbu line and Mokpo on the Honam line.

Korail will continue to operate bullet trains departing from Seoul and Yongsan stations for Busan and Mokpo, respectively.

The ministry plans to ask those interested in operating high-speed trains to submit a bid by the end of June. Many major business groups, including Doosan, Dongbu and Kumho Asiana, have expressed their interests. The permit is expected to last up to 15 years.

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