Recently, the Korean government is considering a policy of adopting competition in railway transportation, such as the establishment of a subsidiary company to Korail as a company to operate a part of the KTX line, the separation of deficit-running lines of local railways and the opening of railway transportation to private operators. The termination of local railway service, which is a major provider of public transportation, will not only deprive the public of a means of transportation but also lead to a decline in the quality of public transit in general. The termination of local railway service is being decisively affected by the national railway policy. The purpose of this thesis is to clarify local railway policy in Japan by studying the development and philosophy of the local railway policy of the Japanese National Railway (JNR).