This paper compared Japanese railroad structural reform with European railroad reform and made it clear how management improvement was performed. The Japanese reform was based on regional division and privatization. In addition to that, the separation of infrastructure and operation was accomplished. Because new JR 7 companies` management stability was emphasized by Japanese Government, Only long term debt of JNR that JR would be capable of paying back was taken by JR. To secure the new profit-making sources, JR developed diversification of business lines aggressively. As a result, JR achieved surplus management without receiving the subsidy from the government. On the other hand, business-economy and socio-economy were divided by the separation of infrastructure and operation in Europe. Market competition was requested about business-economy, but public budget support should be performed to socio-economy. Therefore, European railroads restrained diversification of business lines and concentrated management resources in railroad operation. Though railroading was improved, the management deficit continued, and a government burden increased. Considering railroad reforms of advanced countries, Korean Railroad Corporation should create the new profit-making sources and make it up the fare revenue that is estimated to decrease for aging.