Korean government has introduced the modal shift grant scheme in July 2010 to help the competitiveness of carriage of rail freight and awarded a grant to private companies shifting mode of transportation from road to rail in the carriage of freight: the additional costs incurred in the modal shift are supported by the government. However, there arise needs for the amendment of the modal shift grant scheme. This study reviewed the modal shift grant schemes of foreign countries, such as EU, UK and Japan, and drew implications. Furthermore, this study suggested the future directions of the modal shift grant scheme from the respects of the maximization of the effects of the grant scheme, continual rail use of existing rail freight, and justification of the grant scheme. Finally, policy measures amending the existing modal shift grant scheme were suggested.