1. Achievements of KTX project for the past year and improvement measures November 8, 2005 Yong Sang, LEE

2. - Analysis of one-year operation of KTX since opening - Comparison with Japan’s Shinkansen performances - Improvement measures (Expanding demand, etc.) Consciousness of issues

3. - Rose 40% in demand of Kyungbu line, 16% in Honam line - Rose 204% in revenue of Kyungbu line, 161% in Honam line - Korea marks 44.6% out of forecast demand figure - While Japan marks 46.4% at its first year, 64.9% at its 2nd, 78.8% at third, 89.1% at fourth, 96.3% at fifth, 95.8% at sixth Change of transport capacity over time

4. Figure 2. Comparison of transport capacity in pre/post KTX era (Unit: 100,000 persons, 1 million won)

5. 201(100)236151179(89.1)1967 196319621957 286(100)316193352(123.1)1974 273(100)302187341(124.9)1973 261(100)288181297(113.8)1972 250(100)276175265(106.0)1971 259(100)263169279(107.7)1970 238(100)266163228(95.8)1969 218(100)251156210(96.3)1968 184(100)223142145(78.8)1966 165(100)204133107(64.9)1965 84(100)8412839(46.4)1964 Forecast PerformanceYear Figure 3. Demand forecast and performance in figure of Tokaido Shinkansen (Unit : 100 mil. persons·km)

6. 2004~20052003~2004IncreaseDifference Upward1,502633869237 Downward1,502662840227 Total3,0051,2961,709232 Year Bound (Unit : 1000 persons, %) Figure 4. Change of demand: Kyushu Shinkansen

7. Comparison between Korea and Japan - Though demands of the two countries stood similar at first, Korea is regarded to have performed below expectations considering the nation had the edge over Japan with economic power and speed at the starting point. - This seems to be the result of the railway-oriented system in case of Japan while Korea was road centered and the usage of conventional line accounts for 66%.

8. Korea(2004) AJapan(1964) BA/B Population483.8 mil.971.8 mil.0.49 GDP per capitaU$12,000U$3,0004.0 Extension of high speed railway 408.8km515km0.8 Operation hrs.2 Hrs.40 Min.4 Hrs.0.8 High speed rail demand 62,000 persons60,538 persons1.0 (as of the period when Kyungbu high speed rail opened) Figure 5. Comparison of population and economics

9. DivisionJapanKorea Opening year Tokaido Shinkansen 1964 Kyungbu and Honam lines 2004 Usage of conventional line 0%66% Schedule speed129km154km Railway extension at opening 20,681km3,129km Road extension at opening 181km2,778km Transport systemRailway centeredRoad centered Figure 6. Comparisons of status at opening

10. - KTX showed 91.7% punctuality by five minutes, better on time than the Netherlands, Sweden, Germany and Britain - Figure shows that Korea had a more stable start. Japan was very unstable in system in its Infant stage, marking 21 cases of more-than-two-hour delay within a year - Number of safety dysfunction came to 127 in Korea, 214 in Japan on its first year of operation, 251 on its second year. Punctuality and train accidents

11. Nation Punctuality(%) Japan(JR) 98.3 Spain(RENFE) 96.7 France(SNCF) 93.4 Korea(KTX) 91.7 The Netherlands(NS) 90.7 Sweden(SJ) 89.3 Germany(DB) 89.0 U.K. 84.5 Figure 7. Comparison of punctuality (by 5 minutes)

12. Divisi on 1964196519661967 Number of accident 21425115386 Year1968196919701971 Number of accident 78887099 Year1972197319741975 Number of accident 168207260254 Year Figure 8. Number of accident at infant stage of Shinkansen

13. - Demand of flight between Seoul~Daegu slashed by 71.5%, Seoul~Busan by 29.5% - Shinkansen between Tokyo~Nagoya brought air travel down to zero in four years of operation Influences Since KTX Operation

14. Distance Transport means 19631964196519661967 Tokyo ~ Nagoya Railway (number of passenger) 5.078 mil. (96%) 6.116 mil. (97%) 6.955 mil. (99%) 7.261 mil. (99.7%) 8.323 mil. (99.9%) Air 218,000 (4%) 291,000 (3%) 94,000 (1%) 22,000 (0.3%) 11,000 (0.1%) Total5.296 mil.6.407 mil.7.049 mil.7.283 mil.8.334 mil. Figure 9. Railway-Flight ratio between Tokyo~Nagoya

15. KTXShinkansen Number of passenger62,00060,538 Performance against demand forecast 44.6%46.4% Punctuality98.9%(by 10 min.) 21 cases of more-than- two-hour delay Average delay per unit vehicle is 1.7 min. Operation dysfunction (number of cases) 136214 Outcome Flight to Busan down by 30% Flight to Osaka down by 33% Figure 10. Comparison of KTX-Shinkansen Performances

16. Improvement measures - First, in order to create more needs, it is necessary to come up with strategic planning of restoration of connecting transportation, various rate system, improvement of ride comfort, attracting more office workers during week days, more family and group passengers over weekends. - Second, punctuality is immediately related to reliability and trains should be operated on time. - Third, problems with rolling stock, signal dysfunction and transmission, facilities must be solved to secure safety, in rail equipment as well. - Finally, the second phase of high speed rail onstruction should complete at the earliest to maximize efficiency.

17. THANK YOU Q&As