[Asia Exclusive] Kim Han-young "K-Rail to Continuously Discover and Develop New Businesses for Overseas Expansion"

Interview with Kim Han-young, President of Korea Rail Network Authority
Establishing a foothold for full-scale entry into the Latin American market, including support for the Pacific Railway Development Project
Major achievement: transportation network innovation in the region following the opening of four railway lines in the Southeast area
Three GTX lines in the metropolitan area progressing steadily... Metropolitan railway projects also advancing smoothly
Operating 'Contract System Innovation TF' with expert participation... Focusing on improving unfair practices
Formed Carbon Neutral Railway Strategy Committee last year... Linking 'ESG management' to mid- to long-term strategies

Kim Han-young, President of the Korea Rail Network Authority, is explaining the achievements so far, the current status of promoting ESG (Environmental, Social, and Governance) management, a recent key topic, and the priority business plans focused on this year, ahead of his first anniversary in office next month.

[Interview = Jeong Doohwan, Head of Construction and Real Estate Department; Organized by = Reporter Jo Gangwook]

"Since the opening of four railway lines in the southeastern region at the end of last year, the transportation network in this area has undergone a major transformation. We will continue to do our best to ensure that railways remain a fundamental mode of transportation loved by the public."

Kim Han-young, Director of the Korea National Railway Corporation, who is approaching his first anniversary next month, has spent a busy schedule communicating with the corporation’s members, formulating future strategies, and inspecting safety at railway construction sites.

Since his inauguration in February last year, Director Kim has prioritized 'safety first,' 'railway industry innovation,' and 'a clean and cooperative corporation' as core values, striving to reflect these throughout management. In particular, through on-site management tours of regional headquarters nationwide, he reaffirmed the corporation’s significant role. One memorable achievement was relocating the railway near Imcheonggak, the birthplace of independence activist Seokju Lee Sang-ryong located in Andong, Gyeongsangbuk-do, along the Dodam-Yeongcheon double-track electrification section of the Jungang Line. This laid the foundation for restoring Imcheonggak, which had been damaged by Japanese colonial rule, after more than 80 years. We asked Director Kim about his achievements so far, the current status of ESG (Environmental, Social, and Governance) management initiatives, and key projects planned for this year.

- Your first anniversary is coming up soon. What achievements would you highlight so far?

▲ First, I would highlight the expansion of the core railway network, including the opening of four projects in the southeastern region. Over the past year, the corporation mobilized all its railway construction capabilities to successfully open six projects. We first opened the double-track electrification of the Jungang Line between Wonju and Jecheon, introducing the KTX-Eum high-speed train domestically for the first time. This enhanced accessibility and convenience between the Seoul metropolitan area and the Gangwon and Chungbuk regions. We also opened the double-track electrification of the Busan-Ulsan-Pohang line along the east coast, alleviating traffic congestion in Busan and the east coast area. Notably, this was the first time a metropolitan railway connected Busan and Ulsan in a non-capital region, laying the foundation for the 'Bu-Ul-Gyeong Mega City' and injecting new vitality into Busan and Ulsan. The opening of the double-track electrification on the Yeongnam section of the Jungang Line from Dongdaegu to Yeongcheon and Shin-Gyeongju promoted balanced development in the Yeongnam inland region. Additionally, the railway construction between Icheon, Gyeonggi-do, and Mungyeong, Gyeongbuk, was partially opened on December 30 last year for the first phase between Icheon and Chungju. This reduced travel time from 1 hour 45 minutes by bus to 30 minutes, greatly improving transportation convenience for local residents.

- There is high interest in the Metropolitan Area Express Railway (GTX) to alleviate traffic congestion in the metropolitan area. However, there are concerns about delays in some projects. What is the status?

▲ Currently, we are advancing three GTX lines capable of running at speeds up to 200 km/h through downtown Seoul. Line A, connecting Paju Unjeong in the northwest to Dongtan, is scheduled to open in 2024. GTX B, connecting Incheon Songdo and Namyangju Maseok, is in the basic planning stage, and Line C, connecting Yangju Deokjeong and Suwon, is undergoing negotiations with the preferred bidder. Once all three GTX lines open, downtown Seoul and the outer metropolitan areas will be connected within 30 minutes, drastically reducing commuting times and significantly easing traffic congestion in the metropolitan area.

Metropolitan railway projects are also progressing smoothly. This year, the Dangogae-Jinjeop line and the Shinbundang Line extension from Sinsa to Gangnam will open. The Sinansan Line, connecting Seoul and the southwestern metropolitan area, is planned to open by the end of 2024. We will also initiate new projects this year, including the Shinbundang Line extension from Gwanggyo to Homaesil and the 3rd New Town line from Bucheon Daejang to Hongdae Station, with design commencement and basic facility planning underway.

- Last year’s overseas achievements were notable, with orders totaling 47.5 billion KRW. Can you elaborate?

▲ Despite difficulties in securing overseas projects due to the COVID-19 pandemic, we achieved meaningful results this time. We signed contracts for the 42.5 billion KRW project to establish the signal and communication system for the Tavantolgoi-Junbayan section in Mongolia, as well as the construction of the Mongolian Railway Traffic Control Center and a 3.8 billion KRW PMC project to strengthen operational capabilities. This marks the first step for domestic companies led by Korea in Mongolia, a key country in the East Asian Railway Community, and is expected to serve as a foothold for further domestic company expansion.

We also secured two consulting projects: a feasibility study for the Costa Rica Pacific Connection Railway improvement project and support for the El Salvador Pacific Railway development project, laying the groundwork for K-Rail’s full-scale entry into the Latin American market. As the pandemic situation ends or eases, infrastructure projects?especially new railway projects aligned with ESG principles?are expected to be launched in large numbers worldwide to stimulate economies. We plan to actively utilize the favorable domestic and international networks we have built to continuously discover and develop new projects for Korean railways’ overseas market expansion.

- I understand you have put significant effort into improving unfair practices. What measures are being implemented?

▲ Last year, the corporation executed over 50 projects, including the Wolgot-Pangyo double-track electrification construction, with project expenditures exceeding 7 trillion KRW. For such massive expenditures to be properly executed, it is essential that technically capable companies win contracts and that a cooperative contract culture between large and small-medium enterprises is established. To enhance contract system efficiency, advance railway technology, and realize social value, we established and operated the 'Contract System Innovation Task Force' in April last year, involving contract and procurement departments and external experts. Through partner company meetings, VOCs, related association suggestions, and internal task identification, we derived and completed improvements on 88 tasks. For example, we abolished unfair clauses that prevented any objections to the corporation’s actions, included respect for partner companies’ human rights in bid announcements, introduced smart construction technology evaluation items in construction technology service evaluations, penalized replacement of participating technicians within one year, and restricted direct contracts with retired corporation employees. We also relaxed perfect score criteria for small businesses and encouraged subcontracting with socially vulnerable companies. We will continue to improve unfair practices and establish a construction culture where capable companies win contracts, ensuring safe and trustworthy railway construction for the public.

- ESG management is a hot topic. What is the current status of its implementation?

▲ To actively respond to the government’s carbon neutrality policy and the globally growing importance of ESG management trends, and to deeply explore the future railway-centered public transportation system, we established the 'Carbon Neutral Railway Strategy Committee' in June last year, composed of three subcommittees: Future Policy, Green New Deal, and ESG. Through eight subcommittee and plenary meetings held so far, various opinions have been raised. Proposed items are being reviewed for linkage with the corporation’s management and mid-to-long-term comprehensive future railway development strategies. We will continue to strive to present concrete implementation plans through committee activities to address national challenges such as carbon neutrality and the Green New Deal in the railway sector.

In particular, in December, as a public institution, we declared an ESG vision to fulfill environmental and social responsibilities and practice transparent management. We also set three strategic goals: 100% electrification by 2035, 50% reduction in travel time between major hubs, and zero corruption and human rights violations. This year, based on these, we will establish detailed strategies for carbon neutrality and a systematic, high-quality strategic framework.

- What are the key focus projects for 2022?

▲ To timely expand railway infrastructure, we plan to invest a total of 3.9971 trillion KRW in railway construction projects this year. We will open four projects on schedule, including the Jinjeop Line double-track electrification (March) and the Bujeon-Masan double-track electrification (December), and promptly commence 11 new projects such as the Indeokwon-Dongtan double-track electrification, Wolgot-Pangyo double-track electrification, and the Southern Inland Railway. We will also solidly advance five national balanced development projects, including the Pyeongtaek-Osong double track and the Daegu Industrial Line, and steadily push forward trunk railway network projects such as Honam High-Speed Phase 2, Seohae Line, and Gangneung-Jejin, as well as metropolitan railway network projects including Samsung-Dongtan, Daegu-Chungcheong metropolitan rail, and GTX, leading the reorganization of an eco-friendly transportation system centered on railways.

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