A Study on the Influence of Railroad Pare Increase on CPI

철도요금 인상이 물가에 미치는 효과분석

If the Seoul-Pusan high-speed rail project is able to open its revenue service in 2004, Korea will be the fifth country with an HSR system in the world. And, it will be recorded as a major milestone in the transportation history of Korea. But, Government regulated railroad fare because railroad fare increase can bring negative influences to CPI(Consumer Price Index). Consequently, Korea National Railroad cannot afford to operate railroad independently under current railroad fare system. In this paper, we studied the railroad fare system under implementation and its influences to CPI. And then we proposed that railroad fare must be decided by competition with other transportation modes and based on the demand variance by introducing YMS(Yield Management System).