Data obtained by Democratic Party lawmaker Jang Jong-tae
18 overdue leases totaling 346.68 million won this year
Korail cites public-enterprise constraints on evictions
Jang calls for clearer rules on contract termination, renewal
Korea Railroad Corporation, known as Korail, repeatedly renewed leases with tenants at station shops and railway sites even as those tenants fell behind on rent for extended periods, according to data obtained by a lawmaker. Some tenants renewed their contracts as many as 10 times while still in arrears, drawing criticism from lawmakers that Korail's management of its rental assets is far too lax.
Data submitted to Jang Jong-tae, a Democratic Party of Korea lawmaker on the National Assembly's Land, Infrastructure and Transport Committee, show that as of July this year, Korail had 18 outstanding rent-arrears cases totaling 346.68 million won ($258,000). Not a single one of those contracts had been terminated.
Of the 18 delinquent tenants, 10 had renewed their leases at least once while still owing rent.
One tenant under the jurisdiction of the Greater Seoul Western Regional Headquarters had accumulated arrears equivalent to 216 percent of the annual rent, yet had renewed its contract 10 times since 2011. Tenants under the Daegu and South Jeolla Province headquarters had renewed their contracts eight times and four times, respectively.
The longest-running arrears case involved a tenant at a station under the Busan-South Gyeongsang Province headquarters. That tenant went 49 months without paying rent — from July 2022 through July this year — accumulating 35.71 million won in unpaid rent. Korail sent payment reminders 17 times during that period, yet the contract remained in force.
By regional headquarters, the Greater Seoul Western office accounted for the largest share of total arrears. Its tenants owed a combined 247.94 million won, or 71.5 percent of the total. The Busan-South Gyeongsang Province headquarters followed with 49.03 million won, and the Daegu headquarters with 27.99 million won.
Korail said it was difficult to evict tenants immediately given its nature as a public enterprise. The agency told Jang's office that, as a state-owned entity, it could not simply remove tenants at will.
Critics say, however, that repeatedly renewing contracts with long-term delinquent tenants raises questions not only about fairness toward tenants who pay on time, but also about the appropriateness of how public assets are being managed.
"If Korail continues to allow tenants who have not paid rent for extended periods to keep using public assets — and even renews their contracts repeatedly — it will inevitably create an unfairness problem for tenants who pay diligently," Jang said. "Korail must clarify the standards for contract termination and renewal during arrears based on the duration and scale of the delinquency, and also review the management practices of the regional headquarters where arrears are concentrated."
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