Allegations have emerged during a National Assembly audit that Korea Railroad Corporation (Korail) may have granted de facto exclusive rights to a specific company in its integrated mobility service, 'Coffee and Bread.' Korail President Kim Tae-seung acknowledged that there are "unclear aspects" in the process and promised to verify the facts through an internal audit.
On October 13, during the National Assembly's Land, Infrastructure and Transport Committee audit, Democratic Party lawmaker Yoon Jong-gun criticized Korail's selection process for the 'Coffee and Bread' service, stating, "The reason public institutions publicly recruit operators is to inform everyone of the same announcement at the same time and to select fairly based on the same criteria."
'Coffee and Bread' allows users to pre-order food and beverages from train station vendors via the Korail mobile app. The service was launched in March 2022 and expanded in April 2023 to include 17 stores across 15 stations nationwide. Participating brands currently listed by Korail include Paris Baguette, Baskin-Robbins, Dunkin', Paris Croissant, and Jamba Juice.
Lawmaker Yoon pointed out that only SPC submitted a proposal for the service, questioning whether other companies had an equal opportunity to participate in the recruitment process. He highlighted that a meeting took place between Korail's travel platform department and SPC on November 19, 2024, about a month before the public recruitment. According to Yoon, SPC's documents indicated that they agreed to prioritize the introduction of a mobile pre-order service linked to the Korail app. However, Korail has maintained that the meeting was to discuss other matters and that 'Coffee and Bread' was not on the agenda.
Concerns were also raised about the limited opportunity for other companies to participate after SPC's selection. Yoon noted that just two days after the eligibility assessment report for SPC was submitted, an internal memo was issued at Korail to halt the development of the Korail Talk app. This development freeze lasted for about 20 months until the new app, Korail Plus, was launched in August 2023, and the halt was not publicly disclosed.
Further issues were raised regarding the contract structure. Yoon stated that Korail's legal department had advised that conducting a competitive bid after the contract period would align with national contracting laws, yet the agreement with SPC included a clause for automatic one-year extensions.
Yoon asserted, "Contacting a specific company before the public recruitment and effectively restricting the entry of other companies afterward raises many unclear issues, including discrepancies between the legal department's review and the actual contract terms. An investigation into the facts is necessary."
In response, President Kim Tae-seung acknowledged the existence of unclear aspects and stated, "I believe there are unclear parts. I will thoroughly investigate this matter as soon as this meeting concludes and report back to the lawmakers with accurate findings from start to finish." When Yoon demanded that the internal audit clarify accountability, Kim agreed to do so.
* This article has been translated by AI.
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