KORAIL, the nation’s railway operator, announced on Wednesday it will launch a bid to offload its railroad unit Incheon International Airport Railroad as part of its efforts to reduce debt.

The state-run enterprise and its financial investor Hyundai Marine & Fire Insurance seeks to sell their combined 90.1 percent ownership of the debt-ridden railway line, connecting the airport with Seoul Station, whose value is estimated at 4 trillion won ($ 3.6 billion), including 2 trillion in debt.

“The restructuring is expected to contribute to reduction of national financial expenditure as it enables the government to decrease a huge amount of financial support for the railway line,” an official at KORAIL said.

The move comes after the Korail and the second-largest shareholder, the Ministry of Land, Infrastructure and Transport announced a takeover plan in June last year.

The sell-off has been delayed due to disagreements over the selling price between the two.

KORAIL had purchased in September 2009 an 88.8-percent stake in the Airport Line from nine private construction companies including Hyundai Engineering & Construction at the cost of 1.2 trillion won.

(hnpark@heraldcorp.com)