Korea's antitrust regulator has approved the merger of state-run rail operators — Korea Railroad Corp. (KORAIL) and SR — clearing the way for the country's first integrated high-speed rail system and a broad overhaul to lower fares, expand capacity and improve passenger services.
The Fair Trade Commission (FTC) said Sunday it found little risk that the transaction would substantially lessen competition in the high-speed rail passenger market.
The approval allows KORAIL to acquire SR's business and a controlling stake previously held by the government, with the integration scheduled to be completed in September.
The decision ends a decade-long dual-operator structure under which KORAIL operated KTX services while SR ran the lower-fare SRT network.
The antitrust watchdog conducted a full assessment for the merger, citing the high-speed rail sector's importance to the national economy and consumers.
The regulator concluded that competition concerns would remain limited because fares, service schedules and operational plans are already subject to extensive government oversight.
Any fare adjustment or significant changes to train frequency, seating capacity or service standards require approval from the Ministry of Land, Infrastructure and Transport.
The ministry and the FTC also signed a memorandum of understanding to jointly monitor the merged operator's performance for three years after the integration. The two authorities will review whether the company fulfills commitments on fares, seat supply and passenger services.
KORAIL submitted a three-year business plan designed to enhance consumer benefits, as part of the merger approval process.
Under the plan, fares on existing KTX routes will be cut by 10 percent to match current SRT pricing. The operator also pledged to add more than 17,000 weekend seats across the network.
The integrated operator will also introduce a unified loyalty program, allowing passengers on former SRT routes to earn mileage at the same 5 percent rate as KTX users. Discount programs and commuter passes will also be consolidated to provide a more consistent customer experience.
The transport ministry said the merger marks the first in-depth antitrust review of a combination between two state-owned enterprises with broad implications for the national economy. The review focused not only on competition issues but also on whether the integration would improve public services, according to the ministry.
The transport ministry is also scheduled to launch KORAIL+, a new mobile application that combines KTX and SRT services under a single platform.
The app, which will be available for download from Monday, will gradually replace the separate booking systems previously used by the two operators, and expand into a broader mobility platform offering rail travel, tourism products and other transportation-related services.
Passengers traveling in August can continue booking KTX tickets through KORAIL+ or the existing KORAIL app, while SRT reservations remain available through the SRT app. Tickets for fully integrated KTX-SRT services operating from Sept. 1 will become available through KORAIL+ beginning Aug. 5.
The government also plans to enhance services for overseas travelers by expanding artificial intelligence (AI)-powered assistance, multilingual support and personalized features.
“The merger is intended to improve passenger convenience and increase the efficiency of Korea's high-speed rail network while maintaining close regulatory oversight to ensure promised consumer benefits are delivered,” an official from the transport ministry said.