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South Korea Averts Rail Strike as Government Approves Phased Bonus Restoration for Korail

A Finance Ministry panel approved lifting a 2009 penalty, phasing Korail’s bonus base to 90 percent in 2026, then 100 percent in 2027.

Overview

  • The Ownership Steering Committee approved moving Korail’s performance-bonus calculation from 80 percent of base pay to 90 percent next year and 100 percent in 2027.
  • The Korean Railway Workers’ Union withdrew the walkout planned for Tuesday morning after the overnight compromise, and trains operated on schedule.
  • The union said it will finalize the decision through a membership vote set for Saturday through Monday.
  • The decision meets the core union demand to restore the 100 percent standard used at other public institutions, reversing a cap tied to a 2009 sanction.
  • Korail had warned of service cuts of about 25 percent and longer intervals if a strike proceeded, but the approval averted disruptions during the year-end travel period.