Korail's Five Subsidiaries Consolidated Into Three; Expanded Discounts at Station Convenience Stores

Five subsidiaries under the Korea Railroad Corporation (Korail) have been integrated into three.

The Ministry of Land, Infrastructure and Transport and Korail announced today (September 23) that they have completed the subsidiary integration procedures and will operate under a three-specialized-company system focusing on customer service, distribution and logistics, and maintenance starting today.

Korail Networks and Korail Tourism Development are being merged into a tentative customer service specialist company named "Korail Tourism Networks," while Korail Distribution and Korail Logistics are being integrated into a tentative distribution and logistics specialist company named "Korail Distribution Logistics."

Korail Tech will maintain its existing organization while strengthening its maintenance expertise.

The official names of the integrated subsidiaries will be finalized within the year after gathering employee feedback.

This integration is the result of structural reorganization pursued since December of last year, and was finalized in June at the Public Agencies Operation Committee following discussions by a labor-management-government consultative body.

The Ministry of Land, Infrastructure and Transport, Korail, and each subsidiary announced 10 tasks to improve services that the public can experience through the integration.

First, discount events such as buy-one-get-one-free and buy-two-get-one-free at station convenience stores, Storyway, will be expanded.

By utilizing logistics capabilities, the companies plan to reduce distribution stages through direct transactions with overseas manufacturers and suppliers for certain imported goods, thereby enhancing price competitiveness.

Vending machines with low usage rates inside KTX trains will be converted into luggage storage spaces.

Starting in late October, all users of Korail Tourism Networks' railway tourism products will be offered a 30 percent discount on parking fees.

Korail Tech will introduce artificial intelligence (AI)-based cleaning equipment and enhance restroom cleaning.

Korail and its subsidiaries plan to prepare a functional adjustment roadmap by the first half of next year and complete consignment contracts by the end of the same year after consultations with relevant organizations.

The integration is being promoted with the principle of succession of employment, and plans are underway to discuss pending issues such as wages, personnel affairs, and working environments through the labor-management-government consultative body.

Kim Tae-byung, Director General for Railway Policy at the Ministry of Land, Infrastructure and Transport, said, "This subsidiary integration is intended to clarify the roles of each subsidiary, enhance expertise by sector, improve convenience for railway passengers, and strengthen safety."

Previously, workers at Korail subsidiaries went on a three-day general strike starting September 21, demanding improved treatment and direct employment.
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.