KTX and SRT Merge into One: More Seats, Increased Operations, and Lower Fares

[Anchor]

It is Monday, and we have reporter Han Jiyeon here for Friendly Economy. Han, I hear KTX fares are going down?

[Reporter]

With the integration of KTX and SRT, KTX fares will be reduced by about 10 percent.

The Fair Trade Commission gave its final approval yesterday, August 2, for the merger between Korail and SR, the respective operators of KTX and SRT.

Starting in September, the brand name will also be unified simply as KTX.

Even for the exact same routes, KTX had been about 10 percent more expensive than SRT.

Under the merger, fares are being adjusted to match the cheaper option, which is the SRT level.

However, this is not starting abruptly in September; in fact, a pilot run has already been underway on some routes since May 15.

These are so-called coupled trains, which link KTX and SRT train cars side by side, and they have been operating in advance on the Honam Line on weekends and the Gyeongbu Line from Fridays to Sundays.

For instance, on the route from Suseo to Gwangju-Songjeong, the number of seats has doubled from 410 to 820 thanks to these coupled trains.

Some of you might worry, "Won't they quietly raise prices back up later?" but you can rest assured about that.

High-speed rail fares could not be set arbitrarily by the companies anyway; the Minister of Land, Infrastructure and Transport strictly determines the upper limit in consultation with the Minister of Finance.

In addition, a separate three-year plan was drawn up this time and jointly reviewed by the Fair Trade Commission and the Ministry of Land, Infrastructure and Transport.

Therefore, you can expect these fare levels to remain in place for the next three years.

[Anchor]

Are the number of train operations increasing as well?

[Reporter]

You might wonder if lower prices mean a decline in service, but it is quite the opposite.

Seat supplies will expand, and the frequency of operations will also increase.

Looking at the seats, more than 15,000 additional seats will be available on weekdays, and over 17,000 on weekends.

Combined, this is about a 6 percent increase for both weekdays and weekends.

The number of operations is also rising.

There will be 23 more runs on weekdays for a daily average of 402, and 26 more runs on weekends for a daily average of 457.

Ordinarily, a merger between public enterprises does not create a new monopoly because the government already owns both entities.

Therefore, the Fair Trade Commission usually does not need to review such cases in depth, but it is reported that an exceptionally thorough review was conducted this time given the significant impact on people's daily lives.

You might wonder, "If fares are dropping and operations are expanding, won't the company suffer losses?"

Since Korail is currently running a deficit, such concerns are indeed being raised.

However, the government believes that "if operations increase and tracks between Pyeongtaek and Osong are also expanded, revenues could actually increase."

[Anchor]

It looks like the ticketing method is changing as well, right?

[Reporter]

Ticketing for September 1 trains begins the day after tomorrow, August 5, starting at 10 a.m.

You can make reservations through the integrated app, Korail Plus.

First, the reservation system is changing.

Until now, you had to use separate applications, such as KorailTalk for KTX and the SRT app for SRT.

Starting in September, you will be able to book everything through a single integrated app called Korail Plus.

You might wonder if you need to install a brand new app, but that is not the case.

Starting at 9 a.m. today, if you were already using KorailTalk, you simply need to update the app, and it will automatically change to Korail Plus.

New users can download it from the App Store.

Timetables and fares will be available starting at 10 a.m. today on the Korail and SR websites, as well as at railway stations.

However, there is one thing you need to keep in mind.

Existing Korail members will be automatically transitioned.

Those who signed up for both services will also be automatically converted into integrated members.

However, transferring your SRT purchase history or discount coupons requires separate consent.

If you are registered only with SRT, you must go through the process of signing up for Korail anew and then transferring your existing benefits.

Without going through this process, benefits such as your previous SRT usage records or coupons might not be transferable.

Looking at the benefits as well,

KTX currently credits 5 percent of the payment amount as mileage, whereas SRT previously had no such regular mileage program.

With the integration, passengers who used SRT will also be able to receive this 5 percent accumulation going forward.

Furthermore, because the operating companies were previously different, passengers could not receive discounts when transferring to regular trains, but now you can receive up to a 30 percent transfer discount for regular trains as well.

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