A Green Future Begins on the Rails

Jung Wang-kook, CEO of SR

Finance|
|
By Seoul Economic Daily (Commentary)
||
Jung Wang-guk, CEO of SR. Photo courtesy of SR - Seoul Economic Daily Finance News from South Korea
Jung Wang-guk, CEO of SR. Photo courtesy of SR

For the past century, railways have served as the arteries of Korea's growth, carrying people and goods across the country. During the industrialization era of the 1970s, freight trains loaded with cement and steel ran to every corner of the nation. Railways were the heart of logistics transport, underpinning the country's key industries. Just as the slow train that took 30 hours to travel from Choryang in Busan to Yeongdeungpo in Seoul when the Gyeongbu Line first opened in 1905 has evolved into today's high-speed train completing the journey in just over two hours, Korea has achieved remarkable industrialization. But behind that progress, the shadow of environmental pollution accumulated as well. Facing climate change, countries around the world are accelerating their transition to low-carbon societies by expanding renewable energy. And the railway industry is drawing renewed attention as an eco-friendly mode of transport with environmental competitiveness in the carbon-neutral era.

As is widely known, railways are among the lowest carbon-emitting modes of transport. Economies of scale apply to transport as well. Because railways can carry large volumes at once, their carbon emissions per unit are low. A freight train traveling the 444.5 kilometers from Seoul to Busan can connect up to 34 freight cars, each capable of loading 53 tons. This means a single trip can transport about 1,800 tons of cargo at once. That is equivalent to 360 five-ton trucks moving in a line.

Imagine the fine dust that hundreds of trucks emit on the roads. The social and environmental cost refers to the monetary value of traffic congestion, air pollution, noise, and accidents. The social and environmental cost of railways is about one-third that of roads. Comparing the carbon emissions of rail and road transport makes the difference even clearer. When transporting 1 million tons of cargo over 1 kilometer, railways emit 8 tons of carbon, while roads emit as much as 209 tons. This means that for the same cargo over the same distance, roads emit more than 26 times the greenhouse gases of railways. Considering that more than 96% of greenhouse gas emissions in the transport sector come from roads, this difference carries meaning beyond mere numbers. The shift to rail logistics is more than a change of means—it is the path to securing a national strategic asset for reducing carbon emissions.

SR is actively pursuing carbon neutrality to further enhance the eco-friendly value of railways. The company joined K-RE100, an initiative to source 100% of corporate electricity from renewable energy. It is also focusing on strengthening company-wide capabilities to solidify its eco-friendly management. Just as cars have an economical driving speed, trains have a standard operating method that can save power consumption. SR introduced an economical standard operating method to the SRT, reducing greenhouse gases by 11,780 tons over two years. That is equivalent to the amount of carbon absorbed by about 200,000 sawtooth oak trees during the same period. In addition, by introducing clean-energy cooling facilities that are more energy-efficient than electricity at railway stations, the company achieved a 70% reduction in cooling power consumption.

Of course, there are still many hurdles to overcome. A considerable number of aging diesel locomotives still operate in our railway industry. For railways to be reborn as a more complete green industry, the transition to electric and hydrogen trains must accelerate. The government is pushing for the technological development of hydrogen-electric locomotives to replace aging diesel locomotives that have reached the end of their service life, while steadily working on improvements such as upgrading overhead lines to expand the operation of eco-friendly power locomotives. Advancing railway infrastructure is a shortcut to an eco-friendly future. Railways are not merely tools for carrying passengers and cargo. They are the most realistic and efficient mode of transport on the road to carbon neutrality, and a future growth engine that will underpin national competitiveness. The railways that supported industrialization must now become a guide opening the way to a sustainable future.

Original reporting by Seoul Economic Daily (Commentary) for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Chaebol Tree

Preview
Families Behind the GroupsKFTC May 2026 · DART filings

An English-first interactive map of Samsung, SK, Hyundai, LG and Lotte — built for foreign investors, correspondents and analysts. Korea translates companies into English. We translate the families behind them.

SIGNAL

Pre-register
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

Pre-register for SIGNAL English Edition — a premium subscription bringing Korean capital markets coverage (M&A, IPOs, private equity, fund flows) to global institutional investors. First access to the 50% introductory rate.