The Korea Fair Trade Commission has granted final approval for the merger of Korea Railroad Corporation (Korail) and SR, the operator of SRT high-speed trains. Under the terms of the deal, Korail will acquire the government’s entire stake in SR and, beginning in September, all high-speed services will operate under the single KTX brand.
The Fair Trade Commission judged that combining Korail and SR poses little risk of limiting competition in the high-speed passenger rail market. To benefit travelers, existing KTX fares on current lines will be cut by 10 percent for three years—matching the lower SRT rate—and overall seat capacity will expand by roughly 6 percent.
On weekdays, daily train trips will increase from 379 to 402, and weekend runs from 431 to 457. Weekly seat supply across all lines will grow by at least 15,000 on weekdays and 17,000 at weekends. Korail plans to boost capacity by coupling KTX and former SRT cars into longer “double-consist” trains. Moreover, the 5 percent mileage rebate now applied to KTX tickets will extend to former SRT routes.
Korail is a quasi-public enterprise wholly capitalized by the government; SR’s ownership is split between the state (58.95 percent) and Korail (41.05 percent). Upon completion of share transfer, Korail will hold 100 percent of SR. Although both operators are state-controlled—normally qualifying the merger for a simplified review—the Fair Trade Commission opted for an in-depth examination because of high-speed rail’s status as national infrastructure and its impact on daily life. This marks the first such detailed review of a merger between public enterprises.
Regulators focused on the 155 routes served by both operators out of a total of 433 round-trip lines, evaluating whether the unified operator might raise fares or cut capacity. The commission concluded that existing government rules tightly restrain Korail’s ability to alter fares, add or drop services, or revise operating conditions without Transport Ministry approval. A joint working group from the Transport Ministry and the Fair Trade Commission will monitor compliance with the merger commitments—fare reductions, seat expansions and service improvements—over the next three years.
Ahead of the full integration, Korail will launch a unified booking app, “Korail+,” on August 3. Passengers can update the existing KorailTalk app or install Korail+ to browse schedules and fares from 10 a.m. that day, and to reserve seats on the combined KTX network beginning September 1. Reservations for September services open at 10 a.m. on August 5. Through August, KTX rides can be booked via Korail+ or KorailTalk, while SRT bookings remain available in the current SR app.