The state-run Korea Railroad Corp. and its labor union reached a last-minute deal early Friday, officials said, avoiding a possible disruption to major transportation services in the wider Seoul area.

The Korean Railway Workers' Union had initially threatened to begin the walkout at 9 a.m. as it demanded a wage increase of 187,000 won ($143) per month, a transparent promotion system and the maintenance of the current criteria for performance-based pay.

The union has also called on the company not to count as labor expenses their increased pay following a court ruling on ordinary wages.

Operations of passenger and cargo train services provided by KORAIL will be normal, officials said.

According to the deal, KORAIL agreed to come up with a solution to the issue of ordinary wages in stages by cooperating with the finance ministry.

The management has also agreed to provide better working conditions following the death of one rail worker in Uiwang, 25 kilometers south of Seoul. The worker was killed trying to connect and separate cargo trains at Obong Station in Uiwang on Nov. 1.

The company, based in the central city of Daejeon, operates the high-speed KTX, Saemaeul and Mugunghwa trains across the country, and parts of the subway services in Seoul and the capital region. (Yonhap)