Railway rates increase by 8% from Dec. 1st

The Ministry of Construction and Transportation decided to raise freight carriage rates by 8% on average from December 1st in order to better management balances that have been troubled by accumulating losses.
Passenger rail passage will increase by 9%, cargoes by 5%, and luggage by 10%. Though Saemaul Express will rise by 10% and Mugunghwa Express by 8.8%, Tongil Express commuter trains will not increase.
Based on weekend fares, a 33,600 won Saemaul Express fare will rise to 37,000 wonand a 22,900 won Mugughwa Express fare to 24,900 won. Saemaul Express between Seoul and Mokpo will rise to 34,600 won from 31,400 won. Mugughwa Express for the same distance will rise to 23,300 won from 21,400 won.
An MOCT official said that this hike was introduced to meet the income acquisition through railroad rates hike as the Korean National Railroad has long suffered from budget deficits, low passage fees and oil price hikes. He stressed that this hike would not influence consumer prices. He also said that the increased railroad rates will be used for modernizing facilities related with train safety, better service, and safety.