The Korea Fair Trade Commission granted final approval for the merger of Korea Railroad Corporation (Korail) and SR Co. effective Saturday, bringing the country's rail competition era to a close a decade after it began.
Korail had requested a preliminary review from the Fair Trade Commission in February over its acquisition of SR's high-speed rail operations, received preliminary approval on July 8, and filed a formal merger notification after signing a business transfer agreement with SR on Thursday.
The Fair Trade Commission and the Ministry of Land, Infrastructure and Transport signed an MOU to ensure fair market order and protect consumer rights in the high-speed rail passenger market following the merger. Under the agreement, the two agencies will jointly monitor Korail's implementation of its business plans covering fares, seat supply and service for three years after the merger.
The Ministry of Land, Infrastructure and Transport said it had worked with the Fair Trade Commission during the merger review to draw up and commit to a business plan that includes a 10 percent reduction in KTX fares and a significant increase in seat supply over the three years following the merger.
Following the merger approval, the ministry will carry out remaining procedures — including authorization of the business transfer — with the aim of completing the integration in September.
Meanwhile, SR was established in 2013 and began operations in 2016. It is classified as a quasi-market public enterprise and primarily operates high-speed rail passenger services.
smh@heraldcorp.com
