As is known, government enterprises are run in the form of governmental department type. In order to accomplish the efficient management of public enterprises, both the elements of socialization and the elements of rationalization which are the charac...
As is known, government enterprises are run in the form of governmental department type. In order to accomplish the efficient management of public enterprises, both the elements of socialization and the elements of rationalization which are the characteristics of public enterprises should be harmonized.
In the case of railway enterprise run by enterprise, managerial autonomy should be emphasized in order to harmonize both the elements. Public corporation has been developing in many countries as a proper management form of the railway enterprise. And it is based on such a reason that the problems of transforming government enterprises (such as railway, communication and monopoly) to public corporation has been recently raising in our country.
Accordingly, it is very significant that we study on the reformation of management form in railway enterprise in the view of social requirement.
The railway has taken advantages safety, speed, low cost and mass transportation which are important criteria of transportation and has dominated over the other transportation means. Recently, due to development of automobile industry and construction of the super-highway, the monoply type operation has been turned into oligopoly one. It is estimated that the presence of super-highway and large automobile truck should present a competition era.
Therefore, the railway enterprise has become the decreasing one. In analyzing the decreasing factors of railway, the comparison between the transportation means of railway and public roads is as follows:
The passengers in railway decreased from 51.0% in 1962 to 25.0% in 1975.
The passengers in public road increased from 47.5% in 1962 to 74.0% in 1975.
The freight in railway was decreased from 87.2% in 1962 to 52.1% in 1975.
The freight in public road increased from 8.5% in 1962 to 21.6% in 1975.
Therefore, the public road plays more important roles than the railway. But all through the long years, the results of management of the railway transportation of Korea is much deficit, for example, 96,700,000,000 Won in 1976.
In order to accomplish the rationalization of management in railway enterprise, the management form of this enterprise should be transformed to a public corporation system which harmonizes the elements of rationaliation and socialization.
The objective of this essay aims to improve the management of railway enterprise in Korea by means of applying the public corporation system to the present management system and to assist the pending reorganization plan of railway enterprise.