The government will invest 4.3 trillion won to promote railway underground projects in the Busan, Daejeon, and Ansan areas to recover local construction activity. It will also expedite national industrial complex projects such as the Yongin semiconductor complex.
The Ministry of Land, Infrastructure and Transport noted on the 19th that it will prioritize the railway underground project through measures to supplement local construction activity. This is part of a strategy to revitalize the local economy by expanding regional development projects.
The ministry plans to finalize discussions with three local governments, including Busan, Daejeon, and Ansan, regarding sections and cost-sharing and to establish a basic plan in the first half of this year. In Busan, approximately 370,000 square meters will be developed by creating an artificial ground on the site of the Gyeongbu Line tracks connecting Busanjin Station to Busan Station for redevelopment related to the North Port. The project cost is about 1.4 trillion won.
Daejeon will invest 1.4 trillion won to develop the Daejeon vehicle depot. The depot will be transferred to the vicinity of Sintanjin to establish a new growth hub in the urban area. The secured site of approximately 380,000 square meters will be developed as a high-density complex. In Ansan, the Ansan Line between the Cheongyo and Central Station sections will be converted to underground. The project cost is around 1.5 trillion won, and development of around 710,000 square meters will take place to create a compact city near the station.
A ministry official explained, “No funds will be injected, and the project cost will be covered by the profits from land development above.” They added, “The local governments have assured that they will provide local funds if the project costs are insufficient.” The official continued, “We are closely coordinating with the Seoul and Incheon metropolitan areas and Gyeonggi Province, considering the operational issues of existing railways, which makes it difficult to finalize the optimal implementation methods. We will swiftly prepare and announce specific plans for undergrounding and integrated development in the metropolitan area.
The ministry will also hasten the development of national industrial complexes. The construction of the Yongin semiconductor complex will begin this year with compensation starting in the first half. The relocation and expansion project of National Route 45, which passes through the industrial complex, will also be ordered as a turnkey project in the first half of the year. The Goheung and Uljin industrial complexes will undergo approval procedures after establishing their plans in the first half of the year. Other local industrial complexes will also commence projects such as completing preliminary feasibility studies.
The ministry will accelerate strategic projects in development-restricted zones (GB). It plans to select national and regional strategic projects, which have a significant impact on revitalizing the local economy, by recognizing them as exceptions for total GB releases within this month.
The projects that have high local interest, such as regional vitality towns (10 locations) and public-private investment agreements (5 locations), will be announced in a call for proposals in March, with results to be revealed in May. For the New: Village, 80% of subsidies will be granted within the first half for the installation of infrastructure and convenience facilities in 32 leading projects, and site acquisition and design will begin.
The ministry will execute a record high budget of 12.5 trillion won for social overhead capital (SOC) in the first half of the year. This amounts to about 70% of the total SOC budget of 17.9 trillion won.