The purpose of this paper is to provide basic information on how to make better policies that improves efficiencies and to derive policy directions using DEA (data envelopment analysis) model. Through this paper, we can identify whether or not the railroad service has an excellent performance, if there are any structural problems, in which sector it is experiencing a degree of inefficiency, and, therefore, how to set up a realistic target to improve efficiency of railroad transportation. According to the result, we need to introduce a better resource efficient economic strategy to reduce the rail line extension and the number of passenger cars for better efficiency from a public interest perspective, while to widen headways and/or reduce the rail line extension from an economic point of view.