KOTI - Korea Transport institute

The PSO (public service obligation) compensation policy for remote areas is in operation to compensate for the management loss of railway service providers occurring while providing basic railway services for the purpose of public interest in accordance with the “Framework Act on the Development of the Railroad Industry.” Twelve lines were designated as PSO railway lines in remote rural areas (PSO railway lines hereafter) in 2005 when lines were given designations for the first time. However, since then, seven lines have been designated as PSO railway lines after many changes and business losses were compensated. However, the compensation system for PSO railway lines is implemented for all routes, which exposes the following limits.