Korea Railroad, Localization of Train Parts... Establishing a Win-Win Model with SMEs

Image photos of 15 types of domestically developed railway vehicle parts. Provided by Korea Railroad.

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Korea Railroad Corporation (KORAIL) is embarking on the localization of railway vehicle parts and establishing a win-win model with small and medium-sized enterprises (SMEs).

On the 12th, KORAIL announced that it will proceed with the recently secured Ministry of Land, Infrastructure and Transport (MOLIT) research and development (R&D) project for the localization of railway vehicle parts.

The project aims to localize 15 core parts of newly introduced pantographs and other components for high-speed trains EMU-260 and EMU-320, in collaboration with SMEs. The total project cost is approximately 169.8 billion KRW.

Due to the special nature of railway vehicle parts, which require small-lot orders of various types, it is difficult for SMEs to develop localization independently. Considering this, MOLIT supports the localization development with an annual R&D budget of 76.6 billion KRW.

SMEs participating in the project can supply developed products for three years by utilizing the development selection system implemented by KORAIL, and the new sales generated for SMEs through this are expected to reach 126.9 billion KRW annually.

KORAIL expects this project to contribute to increased SME sales, job creation, and the expansion of companies into overseas markets.

Previously, KORAIL developed 62 items, including KTX motor block devices, in connection with national R&D and MOLIT-supported projects, and purchased domestically produced parts worth a total of 118.1 billion KRW by last year.

KORAIL President Son Byung-seok stated, “Upon completion of the localization project, the localization rate of EMU-260 and EMU-320 is expected to increase from 85.7% to 90.0%. KORAIL will leverage government investment as a catalyst to secure railway parts technology and strive to establish a railway-type win-win model where KORAIL and SMEs grow together.”

Meanwhile, to ensure smooth progress of the project, KORAIL recently established a General Technical Committee and a Commercialization Council, holding the first meeting on the 6th.

This content was produced with the assistance of AI translation services.