FRAMEWORK ACT ON RAILROAD INDUSTRY DEVELOPMENT
Act No. 6955, Jul. 29, 2003
Amended by Act No. 7219, Sep. 23, 2004
Act No. 8135, Dec. 30, 2006
Act No. 8852, Feb. 29, 2008
Act No. 9547, Mar. 25, 2009
Act No. 9609, Apr. 1, 2009
Act No. 9772, jun. 9, 2009
Act No. 11690, Mar. 23, 2013
Act No. 14547, Jan. 17, 2017
Act No. 17460, jun. 9, 2020
Act No. 17453, jun. 9, 2020
Act No. 17446, jun. 9, 2020
CHAPTER Ⅰ GENERAL PROVISIONS
The purpose of this Act is to contribute to the advancement of railroad industry efficiency as well as the public good and the development of the national economy, by raising the competitiveness of the railroad industry and laying the foundation for its further development.
| Article 2 (Scope of Application) |
This Act shall apply to railroads falling under any of the following subparagraphs: Provided, That the provisions of Chapter II shall apply to all railroads: <Amended on Jun. 9, 2020>
| 1. | Railroads owned, constructed, operated or managed by the State or the Korea High-Speed Rail Construction Authority (hereinafter referred to as the "High-Speed Rail Construction Authority") established under the Korea High-Speed Rail Construction Authority Act; |
| 2. | Railroads owned, constructed, operated, or managed by Korea National Railway established under Article 20 (3) or the Korea Railroad Corporation established under Article 21 (3). |
The terms used in this Act are defined as follows: <Amended on Jun. 9, 2020>
| 1. | The term "railroad" means a transportation system in which railroad facilities necessary to transport passengers and freight, rolling stock and an operation/supporting system relevant thereto are comprised organically; |
| 2. | The term "railroad facilities" means any of the following facilities (including sites): |
| (a) | Railway tracks (including facilities ancillary to railway tracks), station facilities (including distribution facilities, transfer facilities, convenience facilities, etc.) and buildings and building facilities for railroad operations; |
| (b) | Track and railcar repair and maintenance site, rolling stock maintenance sites and rolling stock storage facilities; |
| (c) | Railroad power facilities, information and communication facilities, and signaling and train control facilities; |
| (d) | Facilities necessary for operations interconnecting other railroad routes or railroads and other means of transportation; |
| (e) | Facilities for development, testing, and research of railroad technology; |
| (f) | Education and training facilities for the training of railroad experts and studies in railroad management; |
| (g) | Other facilities prescribed by Presidential Decree for the construction, maintenance, and operation of railroads; |
| 3. | The term "railroad operation" means any of the following railroad-related operations: |
| (a) | Carriage of railroad passengers and freight; |
| (b) | Maintenance of rolling stock and operational management of trains; |
| (c) | Development of subsidiary businesses and services that utilize railroad facilities, rolling stock, railroad sites, etc.; |
| 4. | The term "rolling stock" means locomotives, passenger coaches, freight cars, and special cars, all of which are manufactured for the purpose of operating on railway tracks; |
| 5. | The term "railway track" means infrastructure comprised of a track for running rolling stock and trackbed or structures supporting such railway track; |
| 6. | The term "construction of railroad facilities" means the installation of new railroad facilities and related activities, including refurbishment of railroad facilities such as straightening, electrifying, double-tracking, modernizing, etc. of existing railroad facilities which is intended to improve the performance and function of railroad facilities; |
| 7. | The term "maintenance of railroad facilities" means routine activities such as inspections, repair, replacement, refurbishment, etc. for the purpose of maintaining the current condition and improving the performance of existing railroad facilities; |
| 8. | The term "railroad industries" means industries related to railroad transportation, railroad facilities and rolling stock, industries related to the development of railroad technology, and other industries related to the development, use and management of railroads; |
| 9. | The term "railroad facility manager" means a person who performs duties related to the construction, management, etc. of railroad facilities and falls under any one of the following items: |
| (b) | Korea National Railway established under Article 20 (3); |
| (c) | A person granted a right to manage railroad facilities under Article 26 (1); |
| (d) | A person who vicariously executes, is delegated or entrusted with management of railroad facilities by persons falling under items (a) through (c); |
| 10. | The term "railroad operator" means entities such as the Korea Railroad Corporation established under Article 21 (3) or others who perform duties pertaining to railroad operations; |
| 11. | The term "public services" means railroad services provided by a railroad operator in light of the policies, public purposes, etc. of the State, and local governments, having no relation to the profit-making purposes of the railroad operator. |
CHAPTER Ⅱ CREATION OF FOUNDATIONAL BASIS FOR RAILROAD INDUSTRY DEVELOPMENT
SECTION 1 System for Establishing and Promoting Railroad Industry Policies
| Article 4 (Basic Policy Direction) |
| (1) | Where the State establishes and implements railroad industry policies, it shall take into consideration principles of efficiency and functions that promote the public good. <Amended on Jun. 9, 2020> |
| (2) | Recognizing that railroads possessing high efficiency in energy consumption, environmental-friendliness and transport efficiency play an essential role in the sound development of the nation and in enhancing the transportation convenience of the nation, the State shall prepare various policies for the purpose of developing the railroad industry by setting up and maintaining the proper objectives for transportation burden sharing of railroads, and securing the railroad facilities therefor, etc. |
| (3) | The State shall secure an organization and the necessary personnel for promoting railroad industry and related policies, such as railroad investment, railroad safety, etc. |
| Article 5 (Formulation of Master Plan for Railroad Industry Development) |
| (1) | The Minister of Land, Infrastructure and Transport shall formulate and implement a master plan for railroad industry development (hereinafter referred to as "master plan") on a five-year basis to promote the fostering and development of the railroad industry. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Master Plans shall include the matters falling under the following subparagraphs: <Amended on Jun. 9, 2020> |
| 1. | Matters pertaining to the basic direction of policies for fostering the railroad industry; |
| 2. | Matters pertaining to the current circumstances and forecast of trends in the railroad industry; |
| 3. | Matters pertaining to railroad facility investment, construction and maintenance and securing of related financial resources; |
| 4. | Matters pertaining to transport interconnections between various railroads and project coordination; |
| 5. | Matters pertaining to the improvement of railroad operation systems; |
| 6. | Matters pertaining to education of experts in the railroad industry; |
| 7. | Matters pertaining to the development and use of railroad technology; |
| 8. | Other matters prescribed by Presidential Decree pertaining to the fostering and development of the railroad industry. |
| (4) | Where the Minister of Land, Infrastructure and Transport intends to formulate a master plan, he or she shall submit such plan to the Railroad Industry Committee established under Article 6 for deliberation after having a prior consultation with the heads of administrative agencies relevant to the master plan. The same shall apply when he or she intends to change a master plan already formulated (excluding minor changes prescribed by Presidential Decree). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (5) | Where the Minister of Land, Infrastructure and Transport has formulated or changed a master plan under paragraph (4), he or she shall publish notice of such plan in the Official Gazette. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (6) | The heads of relevant administrative agencies shall formulate and carry out an annual implementation plan in accordance with the master plan which has been formulated and published, and submit such plan for the relevant year, as well as the track record of the preceding year, to the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (7) | Matters necessary for the procedures for formulating and implementing annual implementation plans under paragraph (6) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 6 (Railroad Industry Committee) |
| (1) | A Railroad Industry Committee (hereinafter referred to as the "Committee") shall be established in the Ministry of Land, Infrastructure and Transport to deliberate on and coordinate master plans, critical policies, etc. relevant to the railroad industry. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The Committee shall deliberate on and coordinate the following matters: <Amended on Jun. 9, 2020> |
| 1. | Essential policy matters pertaining to the fostering and development of the railroad industry; |
| 2. | Essential policy matters pertaining to the structural reform of the railroad industry; |
| 3. | Essential policy matters pertaining to railroad facilities, such as the construction, management, etc. of railroad facilities; |
| 4. | Essential policy matters pertaining to railroad safety and operations; |
| 5. | Matters pertaining to mutual cooperation and coordination among railroad facility managers and railroad operators; |
| 6. | Matters required by this Act, or other Acts, to be submitted to deliberations of the Committee; |
| 7. | Other important matters relating to the railroad industry referred by the Chairperson for resolution. |
| (3) | The Committee shall be comprised of not more than 25 members including the Chairperson. |
| (4) | Sub-committees shall be established under the Committee to review in advance agenda to be submitted to the Committee and to deliberate on agenda entrusted to it by the Committee. <Amended on Mar. 25, 2009> |
| (5) | Except as otherwise expressly provided for in this Act, matters necessary for the composition, function, and operation of the Committee and sub-committees shall be prescribed by Presidential Decree. <Amended on Mar. 25, 2009> |
SECTION 2 Fostering of Railroad Industry
| Article 7 (Expansion of Investment in Railroad Facilities) |
| (1) | The State shall take into consideration social and environmental benefits in promoting investment in railroad facilities. <Amended on Jun. 9, 2020> |
| (2) | The State shall incorporate the target value of investment in railroad facilities and investment plans into various national plans and endeavor to ensure that the rate of investment funds for railroad facilities taken from the investment budget for transportation facilities rises in a continuous manner every year. |
| Article 8 (Support for Railroad Industry) |
The State and local governments may lend financial, monetary, taxation, and administrative support to the railroad industry to promote the fostering and development of the railroad industry.
| Article 9 (Education and Training of Railroad Industry Experts) |
| (1) | The Minister of Land, Infrastructure and Transport shall prepare schemes to enhance the quality of persons engaging in the railroad industry and to develop new railroad technology and improve its operating techniques. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The Minister of Land, Infrastructure and Transport may lend administrative, financial, and other support related to education and training programs for persons engaging in the railroad industry to a training institution specializing in the railroad industry by entering into a contract with such institution as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | Training institutions specializing in the railroad industry under paragraph (2) may conduct surveys on the demand for experts every year and submit the result thereof, including its opinion regarding the supply and demand for experts to the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (4) | Where deemed specifically necessary for new railroad technology and the improvement of operating techniques, the Minister of Land, Infrastructure and Transport may recommend government-invested institutions, government-contributed institutions, and companies, etc., invested by the Government, to invest in research and development of new railroad technology and operating techniques. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| Article 10 (Expansion of Educational Courses concerning Railroad Industry) |
| (1) | The Minister of Land, Infrastructure and Transport may request the heads of relevant central administrative agencies to take necessary measures, such as expansion, etc. of educational courses concerning the railroad industry in accordance with changes in the supply and demand of railroad industry experts. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The State shall establish and implement policies necessary to diversify qualification systems of persons engaging in the railroad industry and to maintain and advance the level of quality of such persons. |
| (3) | The Minister of Land, Infrastructure and Transport may operate and support education agencies such as specialized universities, etc. for the smooth supply of railroad industry experts and the development of the railroad industry. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| Article 11 (Advancement of Railroad Technology) |
| (1) | The Minister of Land, Infrastructure and Transport shall endeavor to research and develop overall railroad technology for the advancement and fostering of railroad technology. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The Minister of Land, Infrastructure and Transport shall guide and foster specialized agencies or institutions for the promotion of research and development under paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | For the advancement of railroad technology, the State may gratuitously lend or concede state property, such as facilities, land, etc. for railroad testing and research development to the Korea Rail Research Institution established under the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutions or allow the Korea Rail Research Institution to use or make profit from such property. <Amended on Sep. 23, 2004> |
| Article 12 (Facilitation for Informatization of Railroad Industry) |
| (1) | The Minister of Land, Infrastructure and Transport shall formulate and implement a master plan for informatization of the railroad industry as prescribed by Presidential Decree to efficiently process and distribute railroad industry-related information. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (2) | In order to efficiently compile, manage, and provide information relating to the railroad industry, the Minister of Land, Infrastructure and Transport may install and operate a Railroad Industry Information Center or lend necessary support to any person who compiles, manages, or provides information relating to the railroad industry as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 13 (Facilitation of International Cooperation and Access to Overseas Markets) |
| (1) | The Minister of Land, Infrastructure and Transport shall be aware of international trends in the railroad industry and facilitate international cooperation. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The State may support projects such as international exchanges, international standardization, international joint research development, etc. of relevant technology and human resources for the purpose of promoting international cooperation and access of the railroad industry to overseas markets. |
| Article 13-2 (Establishment of Association) |
| (1) | Persons engaged in an enterprise, institution, or organization related to the railroad industry, or affairs related thereto, may establish an association, for the purpose of promoting the railroad industry’s sound development and its entry into overseas market. |
| (2) | An association shall be a corporation. |
| (3) | The Association shall come into existence upon obtaining authorization by the Minister of Land, Infrastructure and Transport and registering the incorporation at the seat of its principal office. |
| (4) | The Association shall perform the following affairs on railroads: |
| 1. | Support with policy or technology development; |
| 2. | Management of information and support with sharing thereof; |
| 3. | Support with nurturing of professional personnel; |
| 4. | On-site survey for overseas market entry or support therewith; |
| 5. | Survey or research or publication; |
| 6. | Projects entrusted by the State or local government; |
| 7. | Other affairs as prescribed by its articles of association. |
| (5) | The State, a local government, or any railroad-related public institution under the Act on the Management of Public Institutions may wholly or partially subsidize within budgetary limits the expense incurred for the Association to perform the affairs entrusted by the respective entity. |
| (6) | The articles of association shall be authorized by the Minister of Land, Infrastructure and Transport, and matters to be entered in its articles of association, operation of the association, etc. shall be prescribed by Presidential Decree. |
| (7) | Except as provided in this Act, provisions applicable to incorporated associations of the Civil Act shall apply mutatis mutandis to associations. |
[This Article Newly Inserted on Jan. 17, 2017]
CHAPTER Ⅲ RAILROAD SAFETY AND PROTECTION OF USERS
| Article 14 (Railroad Safety) |
| (1) | The State shall establish the legal and institutional framework required for railroad safety and endeavor to secure the financial resources required therefor for the purpose of protecting the people’s life, body, and property. |
| (2) | When installing and managing railroad facilities, a railroad facility manager shall maintain the relevant facilities in a safe condition and take necessary measures for ensuring safety, such as comprehensive performance verifications and inspections of safety conditions of the relevant facilities and rolling stock, as prescribed by statutes or regulations. <Amended on Jun. 9, 2020> |
| (3) | A railroad operator or a manufacturer of rolling stock, railroad equipment, etc. shall endeavor to ensure safe railroad operations and the safety of structures and facilities and the equipment for rolling stock, railroad equipment, etc. to be manufactured, and to make improvements thereof, as prescribed by statutes. <Amended on Jun. 9, 2020> |
| (4) | The State shall secure an organization and experts exclusively in charge of promoting objective and fair investigations of railroad accidents. |
| Article 15 (Quality Improvement for Railroad Services) |
| (1) | A railroad operator shall endeavor to improve the quality of railroad services that he or she provides. |
| (2) | The Minister of Land, Infrastructure and Transport shall evaluate the quality of railroad services and incorporate the result thereof into policies for the improvement of the quality of railroad services and user convenience. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (3) | Necessary matters pertaining to procedures, use, etc. of the quality evaluation of railroad services under paragraph (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 16 (Protection of Rights and Interests of Railroad Users) |
The State shall prepare the policies to protect rights and interests of railroad users related to the following matters:
| 1. | Publicity, education, and research for the protection of the interests and rights of railroad users; |
| 2. | Prevention of any harm to life, body, and property of railroad users; |
| 3. | Speedy and fair relief measures for complaints by or damage to railroad users; |
| 4. | Other matters relating to protection of railroad users. |
CHAPTER Ⅳ PROMOTION OF STRUCTURAL REFORM OF RAILROAD INDUSTRY
| Article 17 (Basic Directions for Structural Reform of Railroad Industry) |
| (1) | The State shall carry forward a structural reform of the railroad industry separating railroad facilities field from railroad operations to enhance the competitiveness of the railroad industry and lay a foundation for industry development. |
| (2) | The State shall prepare the necessary measures, such as formation of a mutual cooperation system as prescribed by Presidential Decree, so that railroad facilities and railroad operations can function in a complementary manner. <Amended on Jun. 9, 2020> |
| Article 18 (Formulation of Master Plans of Structural Reform for Railroad Industry) |
| (1) | The Minister of Land, Infrastructure and Transport shall formulate a master plan for structural reform of the railroad industry (hereinafter referred to as "structural reform plan") to efficiently carry out the structural reform of the railroad industry. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | A structural reform plan shall include the following matters: <Amended on Jun. 9, 2020> |
| 1. | Matters pertaining to the objectives and basic direction of the structural reform of the railroad industry; |
| 2. | Matters pertaining to promotion plans for the structural reform of the railroad industry; |
| 3. | Matters pertaining to reforms in the ownership and management structure of railroads; |
| 4. | Matters pertaining to the creation of a domestic and foreign environment conductive to the structural reform of the railroad industry; |
| 5. | Matters pertaining to property, liabilities, human resources. etc. resulting from the structural reform of the railroad industry; |
| 6. | Matters prescribed by Presidential Decree as required for the structural reform of the railroad industry; |
| 7. | Other matters prescribed by Presidential Decree, as necessary for the structural reform of the railroad industry. |
| (3) | Where the Minister of Land, Infrastructure and Transport intends to formulate a structural reform plan, he or she shall submit such plan to the Committee established under Article 6 for deliberation after having a prior consultation with the heads of the administrative agencies relevant to the structural reform plan. The same shall apply when he or she intends to change a structural reform plan already formulated (excluding minor changes prescribed by Presidential Decree). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (4) | Where the Minister of Land, Infrastructure and Transport has formulated or changed a structural reform plan under paragraph (3), he or she shall publish notice of such plan in the Official Gazette. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (5) | The heads of relevant administrative agencies shall formulate and carry out an annual implementation plan according to the structural reform plan formulated and publicized, and submit such plan for the pertinent year, as well as the track record of the preceding year, to the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (6) | Matters necessary for the formulation and implementation of an annual implementation plan under paragraph (5) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 19 (Managing Authority) |
| (1) | The managing authority of railroads shall be the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The Minister of Land, Infrastructure and Transport may have Korea National Railway established under Article 20 (3) perform a portion of his or her duties provided for in this Act or other railroad-related statutes in relation to construction, management, etc. of railroad facilities on his or her behalf, as prescribed by Presidential Decree. In such cases, necessary matters regarding the detailed scope of duties, authority, etc. shall be prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | Where Korea National Railway established under Article 20 (3) performs duties of the Minister of Land, Infrastructure and Transport on his or her behalf under paragraph (2), it shall be deemed to be the managing authority of said railroads for purposes of applying this Act and other railroad-related statutes within the scope of such performance. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 20 (Railroad Facilities) |
| (1) | Where the State implements the structural reform of the railroad industry, railroad facilities shall in principle be owned by the State. <Amended on Jun. 9, 2020> |
| (2) | The Minister of Land, Infrastructure and Transport shall formulate and implement the following policies pertaining to railroad facilities: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| 1. | Formulation of investment plans and fund raising for railroad facilities; |
| 2. | Construction and management of railroad facilities; |
| 3. | Maintenance and repair, and the maintaining of proper conditions, of railroad facilities; |
| 4. | Safety management and disaster prevention plans for railroad facilities; |
| 5. | Other matters required to secure public railroad facilities, such as securing their connections among transportation facilities, etc. |
| (3) | The State shall establish Korea National Railway (hereinafter referred to as "KR") by Special Acts as an executing body to systematically and efficiently carry out the duties relating to railroad facilities by merging and consolidating the relevant organizations of the Korea National Railroad and the Korea High-Speed Rail Construction Authority. <Amended on Jun. 9, 2020> |
| Article 21 (Railroad Operations) |
| (1) | Where the State implements the structural reform of the railroad industry, projects relating to railroad operations shall be, in principle, conducted by entities other than the State according to the principle of market economy. <Amended on Jun. 9, 2020> |
| (2) | The Minister of Land, Infrastructure and Transport shall formulate and implement the following policies pertaining to railroad operations: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| 1. | Enhancing the competitiveness of the railroad operations; |
| 2. | Improving railroad operation services; |
| 3. | Securing safety of railroad operations through preventive measures such as safety diagnosis, etc., of train operations, accident investigations, etc.; |
| 4. | Creating a fair competition environment; |
| 5. | Other matters necessary for railroad operations such as protection of railroad users, train operation rules, etc. |
| (3) | The State shall establish the Korea Railroad Corporation (hereinafter referred to as "KORAIL") by Special Act to efficiently manage affairs relating to railroad operations by converting relevant organizations of the Korea National Railroad and the Korea High-Speed Rail Construction Authority. |
SECTION 2 Disposal of Property, Liabilities and Human Resources
| Article 22 (Classification of Railroad Property) |
| (1) | Where the Minister of Land, Infrastructure and Transport implements the structural reform of the railroad industry, he or she shall classify the property of the Korea National Railroad and the Korea High-Speed Rail Construction Authority as follows: <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Operational property: Property, facilities, and rights thereof already acquired or to be acquired by the Korea National Railroad and the Korea High-Speed Rail Construction Authority pursuant to the relevant statutes, contracts, etc. for the main purpose of railroad operations, etc.; |
| 2. | Facility property: Property, facilities, and rights thereof already acquired or to be acquired by the Korea National Railroad and the Korea High-Speed Rail Construction Authority pursuant to the relevant statutes, contracts, etc. for the main purposes of construction and management of railroad infrastructure; |
| 3. | Other property: Property other than the railroad property under paragraphs (1) and (2). |
| (2) | When the Minister of Land, Infrastructure and Transport classifies railroad property pursuant to paragraph (1), he or she shall determine the standards for such classification after having a prior consultation with the Minister of Economy and Finance. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 23 (Disposal of Railroad Property) |
| (1) | The Minister of Land, Infrastructure and Transport shall formulate a disposal plan for railroad property (hereinafter referred to as "railroad property disposal plan") to implement the structural reform of the railroad industry as prescribed by Presidential Decree after undergoing the Committee's deliberation. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (2) | The State shall make investments in KORAIL with operation property in kind pursuant to a railroad property disposal plan, notwithstanding the provisions of the State Property Act. <Amended on Jun. 9, 2020> |
| (3) | KORAIL shall succeed, by universal title, to the rights and duties relating to the operation property invested in kind under paragraph (2). <Amended on Jun. 9, 2020> |
| (4) | The railroad property under the following subparagraphs shall be transferred to the Minister of Land, Infrastructure and Transport from the CEO of the Korean National Railroad pursuant to a railroad property disposal plan, and the Minister of Land, Infrastructure and Transport may entrust KR, KORAIL, relevant agencies and associations, or private corporations prescribed by Presidential Decree with the duties of managing said property or have them use or make profits with such property: <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Facility property of the Korean National Railroad (excluding facility property under construction); |
| 2. | Other property of the Korean National Railroad. |
| (5) | KR shall succeed, by universal title, to the following railroad property and the rights and duties relating thereto pursuant to a railroad property disposal plan. In such cases, the railroad property under subparagraphs 1 and 2 shall, upon completion of the construction, vest in the State: <Amended on Jun. 9, 2020> |
| 1. | Facility property under construction by the Korean National Railroad; |
| 2. | Facility property and operation property under construction by the High-Speed Rail Construction Authority; |
| 3. | Other property of the High-Speed Rail Construction Authority. |
| (6) | Where the CEO of the Korean National Railroad or the CEO of the High-Speed Rail Construction Authority intends to hand-over, transfer, etc. the railroad property under the provisions of paragraphs (2) through (5), he or she shall obtain approval from the Minister of Land, Infrastructure and Transport by preparing documents relevant thereto. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (7) | Matters pertaining to the timing of hand-over, transfer, etc. of the railroad property under paragraph (6), the appraisal methods, reference date of appraisal, etc. of the relevant railroad property, etc. shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 24 (Disposal of Railroad Liabilities) |
| (1) | The Minister of Land, Infrastructure and Transport shall classify the railroad liabilities of the Korean National Railroad and the High-Speed Rail Construction Authority into the following subparagraphs by consulting in advance with the Minister of Economy and Finance: <Amended on Dec. 30, 2006; Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Operation liabilities: Liabilities directly relating to the operation property under Article 22 (1) 1; |
| 2. | Facility liabilities: Liabilities directly relating to the facility property under Article 22 (1) 2; |
| 3. | Other liabilities: Liabilities other than railroad liabilities under subparagraphs (1) and (2) and for public fund management funds from among railroad liabilities borne by the special account for railroad projects. |
| (2) | KORAIL and KR shall succeed, by universal title, to the operation liabilities and facility liabilities, respectively, and other liabilities shall be succeeded to by a general account. <Amended on Jun. 9, 2020> |
| (3) | Where the CEO of the Korean National Railroad or the CEO of High-Speed Rail Construction Authority intends to take over railroad liabilities under paragraphs (1) through (2), he or she shall obtain approval from the Minister of Land, Infrastructure and Transport by preparing documents pertaining to take-over. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (4) | Matters pertaining to the timing of taking over railroad liabilities under paragraph (3), the appraisal methods, reference date of appraisal, etc. of railroad liabilities, etc. to be taken over shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 25 (Succession of Employment) |
| (1) | KORAIL and KR shall succeed, by universal title, to the employment of the personnel of the Korean National Railroad and the High-Speed Rail Construction Authority, except for those who maintain a status as a public official, from among the personnel of the Korean National Railroad. <Amended on Jun. 9, 2020> |
| (2) | The State shall take necessary measures in order to ensure that those whose employment is succeeded to by KORAIL and KR, from among the personnel of the Korean National Railroad under paragraph (1), do not suffer any disadvantage in terms of labor conditions and retirement benefits. <Amended on Jun. 9, 2020> |
SECTION 3 Right to Manage Railroad Facilities
| Article 26 (Right to Manage Railroad Facilities) |
| (1) | The Minister of Land, Infrastructure and Transport may establish a right to manage railroad facilities and to collect fees from any person who utilizes or uses such railroad facilities (hereinafter referred to as "right to manage railroad facilities"). <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | A person who is granted a right to manage railroad facilities under paragraph (1) shall file a registration with the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree. The same shall apply when he or she intends to modify matters already registered. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 27 (Nature of Right to Railroad Facility Management) |
The right to manage railroad facilities shall be deemed a real right and the provisions pertaining to real estate in the Civil Act shall apply mutatis mutandis, except as otherwise expressly provided for in this Act.
| Article 28 (Special Cases for Establishment of Mortgage) |
No right to manage railroad facilities on which a mortgage has been placed shall be disposed of without consent of the mortgagee.
| Article 29 (Changes of Rights) |
| (1) | The establishment, change, extinction, and disposition of a right to manage railroad facilities, or a mortgage the object of which is a right to manage railroad facilities, shall become effective by entering such in a register for railroad facility management rights kept in the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Matters necessary for the registration of rights to manage railroad facilities as provided for in paragraph (1) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 30 (Railroad Facility Management Ledgers) |
| (1) | A person who manages railroad facilities shall prepare and keep a railroad facility management ledger under his or her management. |
| (2) | Matters necessary for preparation and keeping of a railroad facility management ledger, matters to be entered therein, etc., shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| Article 31 (Fees for Railroad Facilities) |
| (1) | A person who intends to use railroad facilities may do so by obtaining permission from the managing authority as prescribed by Presidential decree, by entering into a contract for facility use with a railroad facility manager, or by obtaining consent of a person who has entered into a contract for facility use (hereinafter referred to as "contractor for facility use"). <Amended on Jun. 9, 2020> |
| (2) | A railroad facility manager or a contractor for facility use may collect fees from those who use railroad facilities under paragraph (1): Provided, That all or part of such fees may be exempted or waived, as prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| (3) | Socioeconomic conveniences of railroads, equity with other means of transportation, etc. shall be taken into consideration when collecting fees for railroad facilities under paragraph (2). <Amended on Jun. 9, 2020> |
| (4) | Matters necessary for collection standards, procedures, etc. of usage fees for railroad facilities shall be prescribed by Presidential Decree. |
SECTION 4 Maintaining Public Service Functions
| Article 32 (Bearing of Public Service Costs) |
| (1) | Costs incurred by a railroad operator in providing public services (hereinafter referred to as "costs for public service") shall be borne by the State or a person who directly requests the railroad service in question (hereinafter referred to as "cause provider"), as prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| (2) | The scope of public service costs to be borne by a cause provider shall be as follows: |
| 1. | The reduced or exempted amount where a railroad operator reduces or exempts railroad fares or charges pursuant to other statutes or for national policies or public purposes; |
| 2. | Management loss incurred by a railroad operator in continuing to provide basic railroad service for public purposes in cases where a railroad operator should restrict or suspend railroad service for routes or stations in remote regions due to extreme difficulty in keeping a balance between incomes and outlays as a result of low use demand for the railroad although the railroad operator has taken appropriate measures for management improvement; |
| 3. | Costs incurred by a railroad operator in performing special-purpose projects of the State. |
| Article 33 (Conclusion of Compensation Contract due to Provision of Public Service) |
| (1) | A cause provider shall enter into a contract pertaining to compensation of public service costs (hereinafter referred to as "compensation contract") with a railroad operator. |
| (2) | A compensation contract under paragraph (1) shall include the matters falling under the following subparagraphs: <Amended on Jun. 9, 2020> |
| 1. | Matters pertaining to the standards and details of railroad services provided by a railroad operator; |
| 2. | Matters pertaining to the details of compensation born by a cause provider, compensation methods, etc. in relation to the provision of public services; |
| 3. | Matters pertaining to contract duration, including modification and renewal of contract duration, and contract cancellation; |
| 4. | Other matters agreed to by a cause provider and a railroad operator as necessary. |
| (3) | A cause provider shall consult in advance with the Minister of Land, Infrastructure and Transport and the Minister of Economy and Finance before entering into a compensation contract with a railroad operator. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (4) | If necessary to ensure objectivity and fairness in public service costs, the Minister of Land, Infrastructure and Transport may designate a specialized institution and have such institution take charge of certain duties, such as the calculation and evaluation of public service costs, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (5) | The Committee may intervene upon receiving application of a cause provider and a railroad operator if a cause provider and a railroad operator fail to reach an agreement concerning the conclusion of a compensation contract. |
| Article 34 (Approval for Disuse of Specific Routes) |
| (1) | A railroad facility manager and a railroad operator (hereinafter referred to as "applicant for approval") may take necessary measures, such as disuse of specific routes and stations and restriction, suspension, etc. of relevant railroad services, by obtaining approval from the Minister of Land, Infrastructure and Transport in any of the following cases: <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Where managerial difficulties occur as it becomes extremely difficult for an applicant for approval to keep the balance between incomes and outlays although he or she has taken appropriate measures for improving management of the railroad in relation to routes or stations for which an applicant for approval provides railroad services; |
| 2. | Where proper compensation for public service costs has not been made although a compensation contract was entered into under Article 33; |
| 3. | Where a cause provider fails to bear public service costs; |
| 4. | Where a cause provider fails to comply with adjustment under Article 33 (5). |
| (2) | An applicant for approval shall submit, to the Minister of Land, Infrastructure and Transport, an application for approval which includes the following matters: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| 1. | Details concerning specific routes and stations subject to disuse or intended restrictions or suspension of railroad services; |
| 2. | Matters pertaining to cost-bearing, etc. by a cause provider in cases where continued operations of specific routes and stations or railroad services are required; |
| 3. | Other matters pertaining to disuse of specific routes and stations or restrictions and suspension of railroad services. |
| (3) | Where an application for approval is submitted pursuant to paragraph (2), the Minister of Land, Infrastructure and Transport shall determine whether to grant approval through deliberation of the Committee after consulting a cause provider and the heads of relevant administrative agencies and shall notify the applicant for approval of the result thereof. In such cases, where a decision is made to grant approval, notice of such fact shall be published in the Official Gazette. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (4) | The Minister of Land, Infrastructure and Transport or the heads of relevant administrative agencies shall take necessary measures, such as preparation of substitute means of transportation, etc., where the applicant for approval intends to take measures, such as disuse of specific routes and stations or restrictions suspension, etc. of railroad services pursuant to paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 35 (Restrictions on Approval) |
| (1) | Even in cases falling under any subparagraph of Article 34 (1), the Minister of Land, Infrastructure and Transport need not grant approval under paragraph (3) of the same Article in any of the following cases: <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Where it is acknowledged that measures such as disuse, etc. of routes pursuant to Article 34 are significantly detrimental to the public interest; |
| 2. | Where it is acknowledged that measures such as disuse, etc. of routes pursuant to Article 34 cause significant impairment in providing transportation service due to insufficient substitute means of transportation, etc. |
| (2) | The Minister of Land, Infrastructure and Transport shall compensate an applicant for approval who is a railroad operator for the losses resulting therefrom if such applicant sustains serious operating losses in management due to his or her failure to grant approval pursuant to the subparagraphs of paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 36 (Disposition in Emergency) |
| (1) | Where the Minister of Land, Infrastructure and Transport deems that serious interruption of railroad service could occur due to the occurrence of natural disasters, calamities, wartime, armed conflict, serious failure of the railroad transportation, or other situation equivalent thereto, he or she may issue adjustment, orders or other necessary measures to a railroad facility manager, a railroad operator, or railroad users relating to the following matters: <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| 1. | Transportation control such as assigning transportation priorities for each region, route, and subject of transportation; |
| 2. | Operations of railroad facilities, rolling stock, or facilities; |
| 3. | Securing substitute means of transportation and transportation channels; |
| 4. | Formation and operation of temporary trains; |
| 5. | Assignment of railroad service personnel; |
| 6. | Restrictions on or prohibition from use of railroads; |
| 7. | Other matters prescribed by Presidential Decree for stabilizing railroad service. |
| (2) | The Minister of Land, Infrastructure and Transport may request the heads of relevant administrative agencies to provide necessary cooperation for the implementation of measures under paragraph (1), and the heads of relevant administrative agencies shall cooperate with such requests. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | The Minister of Land, Infrastructure and Transport shall revoke measures without delay where it is deemed that grounds for taking such measures as defined in paragraph (1) cease to exist. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
CHAPTER Ⅴ SUPPLEMENTARY PROVISIONS
| Article 37 (Cost-Bearing of Railroad Construction) |
| (1) | Where a local government, a specific agency, or organization earns significant gains from a railroad facility construction project, a railroad facility manager may have those who has earned such gains (hereafter referred to as "beneficiaries" in this Article) bear, in whole or in part, the costs therefor by obtaining approval from the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Costs to be borne by beneficiaries pursuant to paragraph (1) shall be determined through consultation between the railroad facility manager and beneficiaries. In such cases, the Committee may intervene upon receiving an application from the railroad facility manager or beneficiaries where consultation has not been obtained. <Amended on Jun. 9, 2020> |
| Article 38 (Delegation and Entrustment of Authority) |
The Minister of Land, Infrastructure and Transport may delegate part of the authority under this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, a Special Self-Governing Province Governor, or the head of a local transportation agency or entrust relevant administrative agencies, KR, KORAIL, and government-invested research institutes with such authority. <Amended on Feb. 29, 2008; Apr. 1, 2009; Mar. 23, 2013; Jun. 9, 2020>
The Minister of Land, Infrastructure and Transport shall hold a hearing if he or she intends to grant approval for disuse of a specific route or station or restrictions or suspension of railroad services relevant thereto pursuant to Article 34. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020>
CHAPTER Ⅵ PENALTY PROVISIONS
| Article 40 (Penalty Provisions) |
| (1) | A person who disuses a specific route or a station or restricts or suspends railroad services without obtaining approval from the Minister of Land, Infrastructure and Transport, in violation of Article 34, shall be punished by imprisonment with labor for not more than three years or a fine not exceeding 50 million won. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | A person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than two years or a fine not exceeding 30 million won: <Amended on Jun. 9, 2020> |
| 1. | A person who obtains permission under Article 31 (1) by fraud or other improper means; |
| 2. | A person who uses railroad facilities without obtaining permission under Article 31 (1); |
| 3. | A person who violates adjustment, orders, etc. under Article 36 (1) 1 through 5 or Article 36 (1) 7. |
| Article 41 (Joint Penalty Provisions) |
If a representative of a corporation or an agent, an employee, or any other employed person of a corporation, or an individual commits any violation falling under the provisions of Article 40 in connection with affairs of the corporation or the individual, not only shall such an offender be punished accordingly, but the corporation or the individual shall also be punished by a fine under the relevant Articles: Provided, That the same shall not apply to cases where the corporation or the individual has paid due attention to or diligently supervised the relevant affairs in order to prevent such violation. [This Article Wholly Amended on Apr. 1, 2009]
| Article 42 (Administrative Fines) |
| (1) | A person who violates Article 36 (1) 6 shall be subject to an administrative fine not exceeding 10 million won. <Amended on Jun. 9, 2020> |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended on Apr. 1, 2009; Mar. 23, 2013> |
| (3) | Deleted. <Apr. 1, 2009> |
| (4) | Deleted. <Apr. 1, 2009> |
| (5) | Deleted. <Apr. 1, 2009> |
ADDENDA <Act No. 6955, Jul. 29, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Special Cases concerning Disposal of Liabilities for High-Speed Railroad under Construction)
| (1) | Railroad liabilities of a high-speed railroad under construction at the time this Act enters into force shall be inclusively succeeded to by KRNA at the time KRNA is established notwithstanding Article 24 (2). |
| (2) | The operation liabilities under Article 24 (1) 1, from among the railroad liabilities KRNA has succeeded to under paragraph (1) shall be inclusively succeeded to by KORAIL when the State investment of the operation property in kind in KORAIL as a high-speed railroad is completed. |
| (3) | Where KRNA reversion of the facility property to the State under Article 23 (5) as a high-speed railroad is completed, the Minister of Construction and Transportation shall establish a right to manage railroad facilities for KRNA. In such cases, the survival period of the right to manage railroad facilities in question shall be temporary until KRNA redeems the principal and interest of facility liabilities KRNA succeeds to under Article 24 (2). |
| (4) | The CEO of the Korea National Railroad shall take necessary measures to prepare for opening of the high-speed railroad and taking over operation property, liabilities, etc. until KORAIL is established. |
Article 3 (Special Cases concerning Disposal of Operation Property)
Pertaining to operation property and operation liabilities, except for operation property and liabilities concerning high-speed railroads to be disposed of under Article 2 of the Addenda, the Korea National Railroad shall temporarily perform the rights and duties relevant thereto until KORAIL is established. Article 4 (Transitional Measures concerning Formulation of Master Plans for Structural Reform of Railroad Industry)
Master plans pertaining to the structural reform of the railroad industry established through deliberations by the State Council at the time this Act enters into force shall be deemed structural reform plans established under this Act.
Article 5 (Registration for Modification of Railroad Sites)
Article 6 Omitted.
ADDENDA <Act No. 7219, Sep. 23, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8135, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9547, Mar. 25, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 9609, Apr. 1, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9772, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14547, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Korea Railway Association)
| (1) | The Korea Railway Association incorporated upon approval by the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act as at the time this Act enters into force (hereinafter referred to as the "Korea Railway Association"), shall be deemed an association established in accordance with the newly inserted provisions of Article 13-2 of the Act. In such cases, the Korea Railway Association shall modify its articles of association so as to meet the requirements prescribed by this Act and obtain authorization from the Minister of Land, Infrastructure and Transport, no later than six months after the enforcement date of this Act. |
| (2) | The Korea Railway Association authorized by the Minister of Land, Infrastructure and Transport pursuant to the latter part of paragraph (1) shall be deemed dissolved immediately upon establishment of an association under this Act, notwithstanding the provisions of the Civil Act regarding dissolution and liquidation of a corporation. |
ADDENDA <Act No. 17446, Jun. 9, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 17460, Jun. 9, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.