From 1998, measures to improve economic management and to build a "Strong and Prosperous Nation" were implemented, and slowly the situation in North Korea began to improve - especially as a result of South Korean President Kim Dae-jung's Sunshine Policy of rapprochement with the North.
In July 2000, talks began between the two Koreas to discuss the reopening of the former Kyŏngŭi Line that once ran between Seoul and Sinŭiju via P'yŏngyang; this line is now split between the P'yŏngŭi Line in the north running from Sinŭiju to P'yŏngyang and the P'yŏngbu Line from P'yŏngyang via Kaesŏng to the Korean Demilitarized Zone, and Korail's Kyŏngŭi Line, which runs from the DMZ via Torasan to Seoul.
Work in the South began almost immediately, and service was restarted on the 6.1 km (3.8 mi) Munsan–Imjingang section of  on 30 September 2001, and on the 3.7 km (2.3 mi) Imjingang–Torasan section on 12 February 2002.
Groundbreaking ceremonies took place in September 2002 for the reconstruction of the Kaesŏng–Torasan section across the DMZ and the reconnection of the former Tonghae Pukpu Line on the east coast, which is presently split between the North's Kŭmgangsan Ch'ŏngnyŏn Line from Anbyŏn on the Kangwŏn Line via Kŭmgangsan to the DMZ, and the southern section of the former Tonghae Pupkpu line from the DMZ to Chejin.
The reconstruction work on these two lines was begun on 14 June 2003.

The idea of reopening of inter-Korean railway connections attracted attention from the world, especially from China and Russia, as it would enable the realisation of the long-desired Eurasian Land Bridge and Trans-Asian Railway projects.
But in the shadow of such lofty visions, North Korea's railways remained in critical condition; to counter this, the government announced the "7.1 Economic Management Improvement Measures" on 1 July 2002, under which a number of reforms like those China had implemented in the 1980s were introduced, such as giving companies more independence, the establishment of joint ventures with foreign investors (mostly Chinese, but also some South Korean), bringing foreign exchange rates closer to reality, increasing wages, etc.
However, it also included the raising of prices - a bus ticket that had cost 20 chŏn suddenly increased twentyfold to 1 wŏn; this applied to the railways, too: a ticket from P'yŏngyang to Ch'ŏngjin, which had cost 16 wŏn, went up 37 times, to 590 wŏn.
Around the same time, some new locomotives were bought from China, and many second-hand locomotives and freight and passenger cars were bought, mostly from China, but also from Russia, Slovakia, Poland, Germany, and even Switzerland, were brought in to help ameliorate the situation on North Korea's railways.
Money was also invested in the reconstruction of railway stations - a completely new station was built at Kaesŏng with South Korean money, whilst P'yŏngyang's central railway station underwent a major renovation in 2005, which included the restoration of walls, the installation of new waiting room doors, and the installation of a large neon sign.

2004 saw the worst known railway disaster in North Korea when an explosion at the station in Ryongch'ŏn destroyed buildings in a large swathe around the city's station, killing 54 and injuring 1,245 people in the blast itself and the subsequent fires, according to official casualty reports.
A wide area was reported to have been affected, with some airborne debris reportedly falling across the border in China; the Red Cross reported that 1,850 houses and buildings had been destroyed and another 6,350 had been damaged.
The basic restoration of the station was completed within a week, and DPRK–China international train service was reinstated on 28 April.

Although the reconstruction work on the inter-Korean rail lines was nearly complete by March 2006, it wasn't until 17 May 2007, nearly seven years after negotiations on the subject began between North and South, that they were finally reopened.
An agreement on cross-border operations had been made between Kukch'ŏl and Korail already in April 2004, but three subsequ
From 1998, measures to improve economic management and to build a "Strong and Prosperous Nation" were implemented, and slowly the situation in North Korea began to improve - especially as a result of South Korean President Kim Dae-jung's Sunshine Policy of rapprochement with the North. In July 2000, talks began between the two Koreas to discuss the reopening of the former Kyŏngŭi Line that once ran between Seoul and Sinŭiju via P'yŏngyang; this line is now split between the P'yŏngŭi Line in the north running from Sinŭiju to P'yŏngyang and the P'yŏngbu Line from P'yŏngyang via Kaesŏng to the Korean Demilitarized Zone, and Korail's Kyŏngŭi Line, which runs from the DMZ via Torasan to Seoul. Work in the South began almost immediately, and service was restarted on the 6.1 km (3.8 mi) Munsan–Imjingang section of  on 30 September 2001, and on the 3.7 km (2.3 mi) Imjingang–Torasan section on 12 February 2002. Groundbreaking ceremonies took place in September 2002 for the reconstruction of the Kaesŏng–Torasan section across the DMZ and the reconnection of the former Tonghae Pukpu Line on the east coast, which is presently split between the North's Kŭmgangsan Ch'ŏngnyŏn Line from Anbyŏn on the Kangwŏn Line via Kŭmgangsan to the DMZ, and the southern section of the former Tonghae Pupkpu line from the DMZ to Chejin. The reconstruction work on these two lines was begun on 14 June 2003.
The idea of reopening of inter-Korean railway connections attracted attention from the world, especially from China and Russia, as it would enable the realisation of the long-desired Eurasian Land Bridge and Trans-Asian Railway projects. But in the shadow of such lofty visions, North Korea's railways remained in critical condition; to counter this, the government announced the "7.1 Economic Management Improvement Measures" on 1 July 2002, under which a number of reforms like those China had implemented in the 1980s were introduced, such as giving companies more independence, the establishment of joint ventures with foreign investors (mostly Chinese, but also some South Korean), bringing foreign exchange rates closer to reality, increasing wages, etc. However, it also included the raising of prices - a bus ticket that had cost 20 chŏn suddenly increased twentyfold to 1 wŏn; this applied to the railways, too: a ticket from P'yŏngyang to Ch'ŏngjin, which had cost 16 wŏn, went up 37 times, to 590 wŏn. Around the same time, some new locomotives were bought from China, and many second-hand locomotives and freight and passenger cars were bought, mostly from China, but also from Russia, Slovakia, Poland, Germany, and even Switzerland, were brought in to help ameliorate the situation on North Korea's railways. Money was also invested in the reconstruction of railway stations - a completely new station was built at Kaesŏng with South Korean money, whilst P'yŏngyang's central railway station underwent a major renovation in 2005, which included the restoration of walls, the installation of new waiting room doors, and the installation of a large neon sign.
2004 saw the worst known railway disaster in North Korea when an explosion at the station in Ryongch'ŏn destroyed buildings in a large swathe around the city's station, killing 54 and injuring 1,245 people in the blast itself and the subsequent fires, according to official casualty reports. A wide area was reported to have been affected, with some airborne debris reportedly falling across the border in China; the Red Cross reported that 1,850 houses and buildings had been destroyed and another 6,350 had been damaged. The basic restoration of the station was completed within a week, and DPRK–China international train service was reinstated on 28 April.
Although the reconstruction work on the inter-Korean rail lines was nearly complete by March 2006, it wasn't until 17 May 2007, nearly seven years after negotiations on the subject began between North and South, that they were finally reopened. An agreement on cross-border operations had been made between Kukch'ŏl and Korail already in April 2004, but three subsequ
Korean State Railway