Abstract

Korea implemented railway reform in 2005 through vertical separation. At present, a state-owned railway, Korail, operates trains by accessing the nation-wide railway network owned by Korea Rail Network Authority (KRNA). Nevertheless, the government has plans to introduce on-rail competition on its high-speed network in the near future. Whilst there are some examples of on-rail competition in Europe, the effects and implications of this reform have not yet been fully determined, particularly in the passenger sector. In addition, there are many tasks and issues to be considered and addressed in order to introduce on-rail competition among railway operators. This paper discusses the issues regarding on-rail competition in the passenger railway sector through comparisons with railway operations in Japan and Europe. As the introduction of on-rail competition significantly changes railway operation and management, sufficient preparation and investigation should be made by the government before delivering its reform plans.

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