In 1994, the TRA came to an agreement with a South Korean manufacturer Hyundai Precision & Industries to build 64 locomotives and 400 passenger cars for $7.2 billion NTD.

[5] However, the TRA soon reported that the trains suffered from frequent traction motor failures and insufficient power delivery due to poor maintenance, oftentimes requiring a third locomotive to be attached to the rear as a backup.

The multitude of problems plaguing the class earned them the derisive nickname "Beggar Gang Train" among enthusiasts and the press.

[2][6] The poor state of repair, combined with paying-off of the maintenance contract's performance bond following Hyundai's merger with Rotem, and subsequent withdrawal of support staff from Taiwan in 2003, prompted TRA to sue the company in 2005 for $1.7 billion NTD in damages;[7] however, the lawsuit never came to fruition.

[7][8] By 2010, remedial work to the locomotives done under supervision of Alstom had improved reliability, and the carriages began undergoing repainting to resolve the paint issues.