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Photo: Dawonsys |
[Alpha Biz= Paul Lee] Korea Railroad Corporation (Korail) will terminate part of its contracts with domestic train manufacturer Dawonsys following delays in the delivery of ITX-Maum trains.
On January 14, Jeong Jeong-rae, Acting President of Korail, reported to Minister of Land, Infrastructure and Transport Kim Yun-seok at the Government Complex in Sejong that the company is taking external criticisms regarding Dawonsys’ delivery delays seriously and is implementing systemic improvements. Korail plans to file a criminal complaint for fraud against Dawonsys and proceed with partial contract termination.
Last month, President Lee Jae-myung criticized the government during a ministry briefing, noting that more than half of the contract payments had already been made to Dawonsys despite delivery delays, stating that “it feels as if government agencies have been defrauded.”
Acting President Jeong said that Korail has launched a Task Force (TF) to ensure prompt delivery, file a fraud complaint against Dawonsys, and pursue the termination of the April 2024 contract for 116 ITX-Maum units (EMU-150) valued at KRW 242.9 billion.
Among the 358 units ordered under the first and second contracts since 2018, 61% have yet to be delivered. The third contract has also not progressed to the pre-design stage for vehicle production, raising concerns about further delays.
Korail is negotiating with Dawonsys for voluntary contract termination while preparing for potential forced termination. Meanwhile, the delayed ITX-120 units are scheduled to be deployed as soon as possible.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
