A subsidiary of Korea Railroad Corporation (KORAIL) will be consolidated from the current five companies into a three-company system. KORAIL plans to reorganize its structure around customer service, distribution and logistics, and maintenance functions.
On the 30th, the Ministry of Strategy and Finance and the Ministry of Land, Infrastructure and Transport said that the "integration plan to improve the efficiency of KORAIL subsidiaries" was reviewed and approved at the 8th Public Institution Steering Committee held that day.
The five existing subsidiaries—KORAIL Retail, KORAIL Tourism Development, KORAIL Networks, KORAIL Logistics, and KORAIL TECH—will be reorganized into three specialized companies: KORAIL Tourism Development and KORAIL Networks (customer service), KORAIL Retail and KORAIL Logistics (distribution and logistics), and KORAIL TECH (maintenance).
With this consolidation, KORAIL plans to unify customer service channels, establish a rail-centered public distribution and logistics network, and strengthen expertise in maintenance fields such as facilities and rolling stock.
The Ministry of Land, Infrastructure and Transport (MOLIT) said it formed a TF with KORAIL, the five subsidiaries, and The Korea Transport Institute (KOTI) in Dec. last year and discussed measures to streamline the subsidiaries through nine meetings. MOLIT said it prepared the integration plan by combining items discussed in the TF with opinions proposed through the labor-management-government consultative body. MOLIT plans to continue operating the "labor-management-government consultative body" even after the integration to improve the working environment of subsidiary employees.