KTR was a so-called "third sector" company jointly funded by local governments and private entities.

[2] KTR owns the following two regional railway lines: In 1982, the company was incorporated as Miyafuku Railway Corporation (宮福鉄道株式会社, Miyafuku Tetsudō Kabushiki-gaisha) for the purpose of the construction and operation of the Miyafuku Line, the construction of which was suspended due to financial difficulties of the Japanese National Railways (JNR).

In the same year, local governments selected the company as the operator of the existing Miyazu Line, which was to be separated from West Japan Railway Company (JR West) in 1990.

Following the downturn in the business, investors including the Kyoto Prefecture government decided to introduce a new scheme of business, in which a separate company would operate trains on the tracks of KTR.

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