Korean Railway Safety Act (8): Korea Railroad Corporation Act - Our Workplace, KORAIL

Introduction: Finding the Legal Roots of KORAIL

The ‘Korea Railroad Corporation Act’ (KORAIL Act) is a document that explains why KORAIL exists, what it can do, and how it is operated. For those looking to work or study the South Korean rail industry, understanding the legal basis of its primary operator is essential.

Today, we will analyze the core contents of the KORAIL Act that define its identity.

1. Purpose of Establishment (Article 1)

KORAIL is different from general companies that aim only for profit.

Article 1 (Purpose): The purpose of this Act is to contribute to the development of the railroad industry and the development of the national economy by establishing the Korea Railroad Corporation to enhance the professionalism and efficiency of railroad operation.

Key Objectives: ① Enhancing professionalism/efficiency of railroad operation, ② Development of the railroad industry, ③ Development of the national economy.
Insight: “Publicness,” which helps the economic interests of the entire nation by efficiently operating the national key transportation network, is emphasized.

2. Capital and Shares (Article 4, etc.)

How large is KORAIL?

Capital: The authorized capital is 30 trillion KRW. (This is a massive scale.)
Ownership: The capital is divided into shares, and the state contributes more than half of the capital. It is effectively a public enterprise where the state is the majority shareholder.

3. Major Business Scope (Article 9)

KORAIL does not just operate trains. It can perform various businesses permitted by law.

Railroad Transport Business: Passenger and cargo transport (Core business).
Maintenance of Railroad Facilities: Management of tracks and facilities entrusted by the state.
Station Area Development: Projects to develop land around railroad stations into commercial and residential facilities.
Tourism and Distribution: Development of railroad-linked tourism products, operation of convenience stores and commercial facilities in stations.
Overseas Railroad Projects: Consulting on overseas railroad construction and operation, etc.
State Entrusted Projects: Various projects entrusted by the state based on necessity.

4. Officers and Governance (Article 10, etc.)

Composition of the people leading the corporation:

Officers: Includes one President, up to 15 directors, and one auditor.
Appointing Authority:
- President: Appointed by the President of South Korea upon the recommendation of the Minister of Land, Infrastructure and Transport after review by the Officer Recommendation Committee.

5. Supervision by the Government (Article 15)

As a public enterprise, it is strictly supervised by the state (Ministry of Land, Infrastructure and Transport).

Reporting Duty: Business plans and budgets must be reported to the Minister for approval.
Power of Order: The Minister may issue orders concerning business when deemed necessary for the public interest.

Conclusion: Act Containing KORAIL’s Present and Future

Studying the KORAIL Act reveals that KORAIL is more than just a train-operating organization; it is a giant platform company that develops cities, creates culture, and expands globally.

A Solid Foundation: Memorize KORAIL’s business scope primarily with keywords. Specific facts such as the ‘30 trillion KRW capital’ and the ‘Appointing authority of the President (State Leader)’ are essential pieces for a full understanding of the corporation’s legal and administrative framework in Korea.

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