This paper analyzes the outcomes of railway reform in the form of vertical separation between the infrastructure and operation since 2004 in Korea. For the analysis, the paper reviewed theoretical issues and case studies of European and Japanese railway reforms efforts. By doing this, we find the implications and a standard model, most useful. Moreover, based on this analysis, the paper reviewed the status of the accomplishment of goals, including solution to current account deficits, improvements in competitiveness and greater efficiency of operations. Finally, the paper highlighted improvement measures to address the problems of railway vertical separation in Korea. This paper suggests specifications pertaining to rail policy and control methods; tower foundation and negotiations and mentions ways to establish legal institutionalization and to secure stable rail system investments in railway in Korea.