<<

Part - į [2011 Modularization of Korea’s Development Experience] Urban Railway Development Policy in Korea Contents

Chapter 1. Background and Objectives of the Urban Railway Development 1 1. Construction of the Transportation Infrastructure for Economic Growth 1 2. Supply of Public Transportation Facilities in the Urban Areas 3 3. Support for the Development of New Cities 5

Chapter 2. History of the Urban Railway Development in 7 1. History of the Urban Railway Development in 7 2. History of the Urban Railway Development in Regional Cities 21 3. History of the Metropolitan Railway Development in the Greater Seoul Area 31

Chapter 3. Urban Railway Development Policies in South Korea 38 1. Governance of Urban Railway Development 38 2. Urban Railway Development Strategy of South Korea 45 3. The Governing Body and Its Role in the Urban Railway Development 58 4. Evolution of the Administrative Body Governing the Urban Railways 63 5. Evolution of the Laws on Urban Railways 67

Chapter 4. Financing of the Project and Analysis of the Barriers 71 1. Financing of Seoul's Urban Railway Projects 71 2. Financing of the Local Urban Railway Projects 77 3. Overcoming the Barriers 81

Chapter 5. Results of the Urban Railway Development and Implications for the Future Projects 88 1. Construction of a World-Class Urban Railway Infrastructure 88 2. Establishment of the Urban-railway- centered Transportation 92 3. Acquisition of the Advanced Urban Railway Technology Comparable to Those of the Developed Countries 99 4. Lessons and Implications for the Future Projects 100 Contents _ List of Tables

7DEOH! &RQVWUXFWLRQPHWKRGLQWKHÀUVWDQGVHFRQGSKDVH6HRXO0HWUROLQHV 18

Regulatory process with regard to the construction of 39
Urban railway train set capacity by period 49 7DEOH! 6KDUHRIWKHVWDWHÀVFDOVXSSRUWLQWKHXUEDQUDLOSURMHFWVE\SHULRG 51
Rules and ordinances on the urban railway technologies 70

Financing structure of the Seoul Metro Line 1 project 72 7DEOH! )LQDQFLQJVWUXFWXUHRIWKHÀUVWSKDVH6HRXO0HWUROLQHV 74
Financing structure of the second-phase Seoul Metro lines 76
Financing structure of Metro Line 1 78
Financing structure of Line 2 78
Financing structure of Busan- Light Railway 79
Financing structure of the urban railway projects in other cities 81

South Korean urban railways in operation as of late 2011 89
Metropolitan railways in operation as of late 2011 91
Seoul Metro lines in operation as of late 2010 93
Urban railways in operation in the local metropolitan cities as of late 2010 94
Metropolitan railways in operation as of late 2010 95
Passenger share of urban by transit type 97
Passenger share of urban transportation by transit type in the local metropolitan cities 97 Contents

Contents _ List of Figures

Total mileage of the country's urban railways and per-capita gross domestic product by period 2
Bus-centric urban transportation in Seoul in the 1960s 4
Changes in the area 5

Rising curve of the socioeconomic index in Seoul 8 )LJXUH! 5RDGZD\WUDIÀFLQ6HRXOLQWKHV 8
Groundbreaking ceremony of Seoul Metro Line 1 11
Inauguration ceremony of Seoul Metro Line 1 12
The excavation-from-the-surface method used in Seoul Metro Line 2 13
Construction in the tunnel section of Seoul Metro Line 3 16
Engineering stages of the underwater tunnel for Metro Line 5 built under the riverbed of 19
A tunnel in Yoido of Seoul Metro Line 9 under construction 21
Lauguration of 22
K-AGT light railcars running on Busan Metro Line 4 23
Railcars running on Gimhae-Busan Light Railway 24
Fire in Metro Line 1 25
Extension of Line 2 26
Construction of the Metro Line extension to Songdo 28
The shield tunnel boring method used in the construction of Metro Line 1 29
Screen doors installed along the platforms of Metro Line 1 31
Six-track section of 32
Local and express tracks of Gyeongin Line 33
Double-deck express train running on 34
and Seoul Metro trains running on Ilsan Line 35
Unmanned train operation system of Shin Line 36

Examples of privately funded 43
Flow of an urban railway project 45
Daegu Metro routes 46
Seoul Metro lines and their connections with the surrounding cities 47 )LJXUH! 7KHFRQVWUXFWLRQRI1HZ%XQGDQJ/LQHZDVÀQDQFHGE\3DQJ\R New Town Development 53
Light rail train systems developed in South Korea 55
Share of the urban rail fare in the per-capita gross domestic product 57

Engineering techniques employed in the construction of Seoul Metro Line 9 Express Bus Terminal Station 83

South Korean urban railway passengers by year 96
Export and import of rail products in South Korea 100 Chapter 1. Background and Objectives of the Urban Railway Development

1. Construction of the Transportation Infrastructure for Economic Ggrowth

When a country's economy grows, the expansion of the secondary and tertiary industries in the urban area generally creates a demand for new laborers, triggering the explosion of the urban population. The outsized socioeconomic power of the often leads to the creation of a metropolitan area as some of the city's key functions will be expanded to its satellite cities. In the process, the central city ZLOOEHIDFHGZLWKDQLQFUHDVHLQWKHXUEDQDQGPHWURSROLWDQWUDI¿FZKLFKZLOOOHDG to an increased demand for an adequate transportation system.

,IWKHVXSSO\RIWKHWUDQVLWLQIUDVWUXFWXUHFDQQRWFDWFKXSZLWKWKHWUDI¿FLQFUHDVH LWZLOOVHWRIIWUDI¿FFRQJHVWLRQDVWKHFLW\ VORFRPRWLYLW\ZLOOYDU\DFFRUGLQJWRWKH UHJLRQDQGWLPH7KHFRQJHVWLRQZLOODJJUDYDWHWKHWUDIILFLQFUHDVLQJWKHWUDQVLW hours while worsening people's punctuality. This is also detrimental to the country's industrial efficiency as it will shrink the practical commuting radius, lower the SURGXFWLYLW\DQGLQFUHDVHWKHRYHUDOOORJLVWLFFRVW

7RDGGUHVVWKHVHSUREOHPVWKHGHYHORSHGFRXQWULHVRYHUWKHFRXUVHRIWKHLU HFRQRPLFGHYHORSPHQWKDYHGHYLVHGYDULRXVWUDQVSRUWDWLRQPHWKRGVWKDWZRXOG PHHWWKHFKDQJLQJQHHGDWHDFKVWDJHRIWKHVRFLRHFRQRPLFGHYHORSPHQWDQGKDYH LQYHVWHGPXFKPRQH\LQWKHWUDQVLWLQIUDVWUXFWXUH7KHELJJHVWSD\RIIRILQYHVWLQJLQ WUDQVSRUWDWLRQLVWKHH[SDQVLRQRIWKHSRWHQWLDOVFDOHRIKXPDQPRYHPHQWZKLFKLV DFKLHYHGE\ORZHULQJWKHWUDQVLWFRVWDQGH[SDQGLQJWKHRSSRUWXQLW\IRUPRYHPHQW

1 Chapter 1 2 VHWRIIDQ LYLQJLQWKH LF'HYHORSPHQW DWVWUHQJWKHQLQJ LDODFWLYLWLHVWKH UDQVSRUWDWLRQ7KH RIWKHLQGXVWULDO 5,000 25,000 20,000 15,000 10,000 QHHGIRULPSURYHG JKWKHJRYHUQPHQW I¿FFRQJHVWLRQ QWRIWKHJHRJUDSKLF $ UHDV\DFFHVVWRMREV KXVSURPRWLQJXUEDQ Per capita GDP (US$) country's urban railways (km) Total mileage of the )LYH Total mileage of the country's urban railways and per-capita gross domestic product by period by domestic product gross and per-capita mileage of the country's urban railways

Total )ROORZLQJWKHVXFFHVVIXOFRPSOHWLRQRIWKHVW)LYH

2. Supply of Public Transportation Facilities in the Urban Areas

In the urban areas, the traffic tends to peak in the morning and late afternoon, DQGWREHFRQJHVWHGLQFHUWDLQVSRWVZKHUHDVWKHW\SHRIWUDI¿FLVPDUNHGPRVWO\ IRUVKRUWKDXOWULSV7KHFHQWUDOFLW\LQSDUWLFXODUWHQGVWREHFRQJHVWHGHYHQPRUH GXULQJWKHSHDNKRXUVDVLWKDVWRGHDOZLWKWKHDGGHGÀRZRIWKHPHWURSROLWDQWUDI¿F streaming from the nearby satellite cities. Accordingly, the public transportation, ZLWKLWVFDSDFLW\WRGHDOZLWKWKHWUDI¿FGHPDQGDQGWRLPSURYHWKHWUDQVSRUWDWLRQ HI¿FLHQF\LVFUXFLDOLQWKLVUHJDUG

/RQGRQZKLFKLVWKHELUWKSODFHRIWKH,QGXVWULDO5HYROXWLRQEXWKDVOLPLWHG VSDFHEXLOWXQGHUJURXQGUDLOZD\VLQWRGHDOZLWKWKHJURZLQJLQWUDFLW\WUDI¿F FDXVHGE\WKHPDVVLYHSRSXODWLRQLQÀRZVLQFHWKHLQGXVWULDOL]DWLRQ7KHPRYHZDV spurred by the conclusion that building ground transportation in the cramped space DORQHZRXOGQRWEHVXIILFLHQWWRKDQGOHWKHHYHUJURZLQJWUDIILFGHPDQG2WKHU (XURSHDQFLWLHVWKDWKDGDQXUEDQVWUXFWXUHVLPLODUWRWKDWRI/RQGRQMXPSHGLQWR the bandwagon, building underground rails between the late 18th and early 19th FHQWXULHV(YHQQRZZHOODIWHUWKHSRSXODUL]DWLRQRIDXWRPRELOHVPHWURSROLWDQFLWLHV WKHZRUOGRYHUDUHVWLOODGGLQJPRUHXUEDQUDLOZD\VWRWKHLUH[LVWLQJQHWZRUNWRVROYH WKHLUXUEDQWUDI¿FSUREOHPV

7KHWUDPVDQGEXVHVVDWLV¿HGWKHNH\SXEOLFWUDQVSRUWDWLRQQHHGVLQ6HRXOEHWZHHQ WKHVDQGV:LWKWKHUDSLGH[SDQVLRQRIWKHXUEDQL]HGDUHDVKRZHYHU the trams soon phased out and were gradually replaced by buses, which transported DJURZLQJQXPEHURIFRPPXWHUVWRWKHFLW\FHQWHU([SDQGLQJWKHURDGZD\VIDVW HQRXJKWRDFFRPPRGDWHWKHHYHUJURZLQJQXPEHURIEXVHVDQGFDUVKRZHYHUZDV QRWUHDOLVWLF7KHHOHYDWHGUDLOZD\RUVXEZD\ZDVUHFRPPHQGHGDVDORQJWHUPDQG HQYLURQPHQWIULHQGO\DOWHUQDWLYHWKDWZRXOGSRWHQWLDOO\HDVHWKHURDGWUDIILFDVLW

3 Chapter 1 4 KWKHFLW\FHQWHU UROHLQWKHSXEOLF VHLVVXHVLWEHFDPH DORQJWKHGHGLFDWHG VSRUWDWLRQHI¿FLHQF\ RPSWLQJWKHFRXQWU\ V GFRUUHVSRQGEHWWHUWR

Bus-centric urban transportation in Seoul in the 1960s This is why other metropolitan cities started to pursue their own urban railway to pursue their own urban railway This is why other metropolitan cities started 7KHXUEDQUDLOZD\ZLWKLWVFKDUDFWHULVWLFPXOWLWUDLQFDUULGH SURMHFWVVLQFHWKHV7KHXUEDQUDLOZD\FDQSOD\DFHQWUDO WUDFNVH[FHOVFRPSDUHGWRRWKHUPDVVWUDQVLWVLQWHUPVRIWUDQ automobiles in lowering the air It is also comparably better than and punctuality. SROOXWLRQZKLOHHQVXULQJHQHUJ\HI¿FLHQF\DQGWUDI¿FVDIHW\SU most promising solution to the problems metropolitan cities to consider it the FRQFHUQLQJWKHLQWUDFLW\WUDI¿F is a huge burden on the municipal coffers transit once completed, but its construction number of passengers, to attract the target as it costs an enormous sum. Should it fail LWFRXOGSRVHD¿VFDOFKDOOHQJHWRWKHRSHUDWRU7RDGGUHVVWKH necessary, beginning in the 1990s, to also shift the focus of the urban rail policy from beginning in the 1990s, to also shift the necessary, WKHFRQYHQWLRQDOPLGVL]HGWUDLQVWRWKHOLJKWUDLOVZKLFKZRXO WKHVL]HDQGFKDUDFWHULVWLFVRIWKHFLW\ VXUEDQWUDI¿F FRXOGWUDQVSRUWDPDVVLYHQXPEHURISHRSOHZKLOHVQDNLQJWKURXJ WKDWLVGHQVHO\SDFNHGZLWKKLJKULVHVZLWKRXWDQ\GLI¿FXOW\ 3. Support for the Development of New Cities

The urban railways need the construction of stations, which can trigger the FUDPPHGGHYHORSPHQWRIWKHVXUURXQGLQJODQGDQGWKHVXEVHTXHQWEXLOGLQJRI linkup transits around them, leading to the creation of the “railway station sphere,” a key platform for the future urban growth. In general, the amount of usable lots near a station is frequently limited. To meet the growing demands for land, the FRPSHWHQWDXWKRULW\FDQFUHDWHDVSDFHEULVWOLQJZLWKGLYHUVHFRPPHUFLDODFWLYLWLHV E\SURDFWLYHO\DFFRPPRGDWLQJWKRVHIXQFWLRQDOQHHGV7KHFRXQWU\KDVORQJSXUVXHG WKHGHYHORSPHQWSROLF\WRWXUQWKHXQGHUJURXQGVSDFHFUHDWHGIURPWKHXUEDQUDLOZD\ SURMHFWLQWRDNH\FRPPHUFLDOGLVWULFWLQDJLYHQDUHD,WZRUNHGHVSHFLDOO\ZHOOLQDQ DUHDZKHUHWKHXUEDQUDLOZD\KDVDFRPSHWLWLYHHGJHRYHURWKHUSXEOLFWUDQVLWVDVWKH GHPDQGIRUWKHGHYHORSPHQWRID³UDLOZD\VWDWLRQVSKHUH´SURPSWHGWKHJURZWKLQ the area.

Changes in the Gangnam Station area

:KLOHWKHFHQWUDOFLW\JURZVDVHULHVRIODUJHVFDOHFLWLHVRULQGXVWULDOFRPSOH[HV will be popping up around it, prompting a demand for metropolitan transportation. The metropolitan traffic consists of longer commutes rather than urban transportation, and it tends to show a much higher concentration in the peak hours. In many of the metropolitan transit axes along which the traffic is concentrated, WKHPDVVWUDQVLWLVXVXDOO\VXSSOLHGE\WKHPHWURSROLWDQUDLOZD\V,QWKHGHYHORSHG countries, the dedicated metropolitan railways or a few sections of the existing LQWHUFLW\UDLOZD\VDUHXVHGWRGHDOZLWKWKHWUDI¿FEHWZHHQWKHFHQWUDOFLW\DQGWKH suburban towns scattered around it.

5 Chapter 1 6 XFFHVVIXO VLQVRPH OHWUDFNHOHFWULF WDVSLUHWREXLOG EDFNWKH6RXWK QSURMHFWZKHUH FDSLWDOWRPRYH IROORZHGE\WKH IRUPHWURSROLWDQ PHJDFLW\UHJLRQV´ JK¿VFDOFRQGLWLRQ HYHGWKDWWKHWUDQVLW HH[LVWLQJOLQHV7KH LFGHYHORSPHQW7KH SURMHFWDVZHOODVWKH EDQDQGPHWURSROLWDQ WKHFRPSHWLWLYHQHVVRI VXFFHVVRIWKHSURMHFW 7RGD\PDQ\GHYHORSHGFRXQWULHVVWULYHWREXLOGWKHVRFDOOHG³ The country saw the need for metropolitan transit connecting Seoul and its satellite and its satellite Seoul connecting transit for metropolitan the need saw The country 7KLVUHSRUWDLPVWRLQWURGXFH6RXWK.RUHD VH[SHULHQFHLQWKHV sections of Gyeongin, Gyeongbu, and Gyeongwon Line, which were designed as designed as Line, which were and Gyeongwon Gyeongin, Gyeongbu, sections of WKHPDLQOLQHUDLOZD\7RHIIHFWLYHO\KDQGOHWKHJURZLQJGHPDQG WUDQVLWKRZHYHULWZDVLPSRUWDQWWRH[SDQGWKHFDSDFLW\RIWK traffic, is as important as the handling of urban traffic handling of metropolitan DVZDVSURYHQLQWKHFDVHRIWKH6HRXO0HWUR/LQHFRQVWUXFWLR WKHH[LVWLQJPHWURSROLWDQUDLOZD\VZHUHDOVRH[SDQGHGLQWRGRXE UDLOV6HRXOKDVJURZQLQWRDZRUOGFODVVFLW\ZLWKLWVHFRQRP WRVKDUSHQWKHLUFRPSHWLWLYHHGJH7KHNH\IDFWRUVWKDWGHFLGH .RUHDQJRYHUQPHQW VGHFLVLRQWRLQYHVWKHDYLO\GHVSLWHLWVWRX cities as many residents in the farming regions migrated to Seoul. To cope with the To to Seoul. farming regions migrated residents in the cities as many JURZLQJGHPDQGWKHJRYHUQPHQWRSHUDWHGFRPPXWHUWUDLQVLQWKH JRYHUQPHQWEXLOWDVHULHVRIQHZFLWLHVDURXQGWKH6RXWK.RUHDQ OLQNFRQQHFWLQJ6HRXODQGWKHVHQHZFLWLHVLVFULWLFDOIRUWKH and industry as well as the integration of all a megacity region are the people, space, an integral links people, space, and industry and is considered Transportation these. HOHPHQWLQWKHDGYDQFHPHQWRIUHJLRQDOFRPSHWLWLYHQHVV/RRNLQJ LQWKHFRQVWUXFWLRQRIWUDQVLWLQIUDVWUXFWXUHWRLPSURYHWKHXU PRELOLW\LVGHHPHGDSUHVFLHQWPRYH the key urban functions concentrated in Seoul to those cities. In the process, the In the process, the concentrated in Seoul to those cities. the key urban functions JRYHUQPHQWDOVREXLOWVRPHQHZPHWURSROLWDQUDLOZD\VDVLWEHOL GHYHORSPHQWRIXUEDQUDLOZD\VWRRWKHUGHYHORSLQJFRXQWULHVWKD The report, henceforth, intends to introduce their own urban railway in the future. WKHKLVWRU\DQGSROLF\RIWKHFRXQWU\ VXUEDQUDLOZD\SURMHFW EDUULHUVLWHQFRXQWHUHGDQGWULXPSKHGRYHULQWKHFRXUVHRIWKH LPSOLFDWLRQVIRUWKHIXWXUHSURMHFWV Chapter 2. History of the Urban Railway Development in South Korea

1. History of the Urban Railway Development in Seoul

1.1 Need for the Construction of an Underground Railway

Gyeongin Line WKHFRXQWU\ VILUVWUDLOZD\FRQQHFWLQJ1RU\DQJMLQDQG,QFKHRQ opened in 1899, followed by the rapid expansion of such trunk lines as Gyeongbu, Gyeongui, and Gyeongwon Line and other industrial lines built to exploit the resources buried deep in the country's interior. As these railways were built mainly IRUWKHLQWHUFLW\WUDI¿FUDWKHUWKDQWKHXUEDQWUDI¿FWKHVKDUHRIWKHUDLOZD\VRQWKH urban transportation was not high.

The accelerating industrialization of many cities and the subsequent migration of the farming population to the urban area in the late 1920s created a demand for the mass transit that connects downtown Seoul and other surrounding areas. To meet the demand, commuter trains were operated in Gyeongin Line as well as in some sections of the trunk lines, including Gyeongbu and Gyeongwon Line, which depart IURP6HRXO7KHSRSXODWLRQRI6HRXOKRZHYHUKDGUDSLGO\LQFUHDVHGIURP LQWRPLOOLRQLQDQGPLOOLRQLQ%\WKHWLPHWKHVW)LYH

1) A key trunkline railway connecting Seoul and Incheon, it is regarded as having played the role of a metropolitan railway.

 Chapter 2 8 WRH[SDQGWKH VWRSVDORQJ ) 3 RQQHFWWKHVHFWLRQV \,Q1DWLRQDO 0 90 80 70 60 50 40 30 20 10 VXFKDVWKHEXLOGLQJ WDLQLQJD¿VFDOOLQH vehicles(x 10 Car ownership Population ) 3 1960 1966 1970 1975 laid out a plan to construct a subway line connecting Seoul laid out a plan to construct a subway line )LJXUH!5RDGZD\WUDIÀFLQ6HRXOLQWKHV 

Rising curve of the socioeconomic index in Seoul
Rising curve of the socioeconomic index 0 800 600 400 200 population (x 10 railroads, it was divided into KORAIL and Korea Rail Network Authority in 2004. 7RDGGUHVV6HRXO VWUDIILFLVVXHWKHJRYHUQPHQWVWXGLHGDSODQ 6WDWLRQDQG&KHRQJU\DQJUL6WDWLRQZLWKDNPORQJWUDFNZLWK WKHOLQH+DYLQJPRUHXUJHQWSURMHFWVLQWKHSLSHOLQHKRZHYHU of new industrial lines and the capacity expansion of the existing trunk lines, the expansion of the existing trunk lines, the of new industrial lines and the capacity DGPLQLVWUDWLRQKDGWRVFUDSWKHSODQGXHWRWKHGLI¿FXOW\RIRE Railroad Administration QDWLRQDOUDLOZD\VZLWKLQ6HRXOWRDGRXEOHWUDFNUDLODQGWRF FURVVLQJWKHFLW\FHQWHUZLWKDQXQGHUJURXQGRUHOHYDWHGUDLOZD 2) 2) authority responsible for the construction and management of the national A central government In 1964, the National Assembly formally asked the to come up ZLWKDSODQWRUHPHG\WKHFLW\ VZRUVHQLQJWUDI¿F%\WKHQWKHSRSXODWLRQRI6HRXO ZDVDERXWPLOOLRQSURPSWLQJWKH6HRXOPXQLFLSDOJRYHUQPHQWWRFRQFOXGHWKDW WKHVLQJOHOHYHOJURXQGWUDQVSRUWDWLRQV\VWHPDORQHZRXOGQRWUHVROYHWKHFLW\ V GHWHULRUDWLQJWUDIILF,QUHVSRQVHWRWKHUHTXHVWWKHPD\RUSURSRVHGDPXOWLOHYHO transit infrastructure as a feasible solution, saying that the construction of a subway OLQHLVLQHYLWDEOHGHVSLWHLWVKXJHHVWLPDWHGFRVWV

,QWKH6HRXOPXQLFLSDOJRYHUQPHQWDQQRXQFHGWKHFLW\ V

1.2 Establishment of the Subway Construction Plany

The city's population and registered number of automobiles kept growing during WKHSHULRGRIWKHQG)LYH

9 Chapter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onstruction of Seoul Metro Line 1 1.3 Construction of Seoul Metro million worth of foreign loans. FRQVWUXFWLRQSODQRI6HRXO0HWUR/LQH7KHWRWDOOHQJWKRIWK NPZLWKDQDGGLWLRQDONPORQJWUDFNIRUUDLOFDULQVSHFWLR HYHQWXDOO\XVHGDVSDUWRI6HRXO0HWUR/LQHFXUUHQWO\WKH6 7KHLQLWLDOEXGJHWFRQVLVWHGRIELOOLRQZRQGRPHVWLF¿QDQF WKHQDWLRQDOUDLOURDGVGLUHFWO\FRQQHFWHGWRWKHPZRXOGEHFRXQ DERXWNPXQGHUJURXQGVHFWLRQ,WZDVSURSRVHGWKDWDQNPO railways. DWHFKQLFDOUHSRUWDIWHUFRQGXFWLQJDFRPSUHKHQVLYHVXUYH\RQW The national railroads. of the connecting and the electrification of Seoul subways UHSRUWDVVXPHGWKDWDWRWDORI¿YHPHWUROLQHVZRXOGEHODLGRX currently populated or areas out of the ten suburban areas the city center and two VFKHGXOHGWREHGHYHORSHGLQWKHIXWXUH7KH¿YHOLQHVWRWDOHG 0HWUR/LQHEHFRQVWUXFWHG¿UVWDQGWKDWWKHPHWURSROLWDQUDL Station be electrified. Incheon, Cheongryangri and Seongbuk Station and , ,QDGGLWLRQ6HRXO0HWUR/LQHZRXOGEHGLUHFWO\FRQQHFWHGZLW ZHUHGLVFXVVHG)ROORZLQJWKHPHHWLQJDWHDPRI-DSDQHVHVSHFL 1DPGDHPXQDQG'RQJGDHPXQ PXVWHU¿QDQFLDODQGWHFKQRORJLFDOVXSSRUWIURP-DSDQIRUWKH6H ZRUNFRQVLVWHGRIFRQVWUXFWLRQVHFWLRQVHDFKSURFHHGHGE\V VRPHVHFWLRQVWKDWFURVVHGVWUHDPVWKHH[FDYDWLRQPHWKRGIURP construction equipment and was easy to employed as it required no specialized had rich design and engineering experience, the As the local contractors apply. for the passages under some buildings and earthwork met no serious hitches, except WKHSUHYHQWLRQRIWKHFRQVWUXFWLRQYLEUDWLRQQHDUVRPHFXOWXUDO IRUWKH-RQJJDN6KLQVHROGRQJVLJQDOLQJVWDWLRQVHFWLRQZKHUHR

Groundbreaking ceremony of Seoul Metro Line 1

RIGRXEOHWUDFNUDLOVFDQEHODLGRXWLQFDVHDQHZOLQHZLOOEHEXLOWLQWKHIXWXUH $FFRUGLQJO\-RQJJDN-RQJURJD-RQJURJDDQG'RQJGDHPXQ6WDWLRQHDFKKDV WZRVHSDUDWHSODWIRUPVIDFLQJWKHGRXEOHWUDFNLQWKHPLGGOHDQGFDQEHUHFRQ¿JXUHG LQWKHIXWXUHWRDFFRPPRGDWHWZRDGGLWLRQDOSODWIRUPVDQGIRXUWUDFNUDLOV6HRXODQG &KHRQJU\DQJUL6WDWLRQHDFKKDVD<W\SHVLGLQJWUDFNODLGRXWLQWKHVWDWLRQWRDOORZ a loop and the siding operation of the trains. Additionally, siding tracks were laid out LQ6HRXO-RQJJDNDQG&KHRQJU\DQJUL6WDWLRQWRDOORZWKHHPHUJHQF\RSHUDWLRQRI UDLOFDUVDQGVHUYLFHWUDLQV

$OOWKHUDLOFDUVIRU0HWUR/LQHZHUHLPSRUWHGIURP-DSDQDQGZHUHILQDQFHG E\IRUHLJQORDQV0DQXIDFWXUHGE\+LWDFKL/WGWKH\FRXOGUXQRQERWKDOWHUQDWH DQGGLUHFWFXUUHQWV(DFKWUDLQVHWFRQVLVWHGRIDPLQLPXPRIVL[FDUVEXWFRXOGEH UHFRQ¿JXUHGWRDQHLJKWRUWHQFDUWUDLQVHW%\WKHWLPHRIWKHLQDXJXUDWLRQDWRWDO RIFDUVFDUVRZQHGE\WKH6HRXOPHWURSROLWDQJRYHUQPHQWDQGRZQHG E\1DWLRQDO5DLOURDG$GPLQLVWUDWLRQZHUHUHDG\IRURSHUDWLRQ

,Q$XJXVWWKUHH\HDUVDQGIRXUPRQWKVDIWHUWKHVWDUWRIWKHLUFRQVWUXFWLRQ 6HRXO0HWUR/LQHDQGWKHPHWURSROLWDQUDLOZD\RSHQHGRQWKHVDPHGDWH6HRXO &LW\HVWDEOLVKHG6XEZD\2SHUDWLRQ%XUHDXLQGHSHQGHQWO\IURPWKHVXEZD\ FRQVWUXFWLRQKHDGTXDUWHUVWRRSHUDWH0HWUR/LQH7KHEXUHDXFRQVLVWHGRIWKH administration, sales, operation, maintenance, and supply departments and was UHVSRQVLEOHIRUWKHVWDIIWUDLQLQJDQGWUDLQRSHUDWLRQRI0HWUR/LQH$VRILWV LQDXJXUDWLRQWKHVXEZD\WUDLQVRSHUDWHGIRUUXQVDGD\EXWDVRIDWRWDORI

11 Chapter 2 12 FRQVLVWLQJRIWKUHHFRUHV OGXSWRNPRIWUDFN U(FRQRPLF'HYHORSPHQW H:DQJVKLPQL Inauguration ceremony of Seoul Metro Line 1 of Seoul Metro

Inauguration ceremony 7KH6HRXO0HWUR/LQHSURMHFWZDVLQFOXGHGLQWKHWK)LYH

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the longer trains.

7KHWXQQHOERULQJFRQVWUXFWLRQPHWKRGZDVLQWURGXFHGWRWKH0HWUR/LQHSURMHFWRQWRSRI WKHFRQYHQWLRQDOH[FDYDWLRQIURPWKHVXUIDFHPHWKRG7KHWXQQHOERULQJPHWKRGPLQLPL]HG WKHGLVWXUEDQFHWRWKHJURXQGWUDI¿FZKLOHHOLPLQDWLQJWKHFDXVHRIWKHFLYLOFRPSODLQWVDVWKH FRQVWUXFWRUGLGQRWKDYHWRWHDUGRZQEXLOGLQJVRQSULYDWHODQGV7KHWXQQHOERULQJPHWKRGWKDW ZDVHPSOR\HGLQWKHGHVLJQDQGFRQVWUXFWLRQRI0HWUR/LQHKRZHYHUZDVWKHFRQYHQWLRQDO $660 $PHULFDQ6WHHO6XSSRUW0HWKRG 

The excavation-from-the-surface method used in Seoul Metro Line 2

)ROORZLQJWKHRSHQLQJRI6HRXO0HWUR/LQHWKHQXPEHURIVXEZD\SDVVHQJHUVMXPSHG forcing the operator to purchase additional railcars. National Railroad Administration also had

13 Chapter 2 14 6HRFKRDQG

,Q)HEUXDU\FRPSDQLHVMRLQHGIRUFHVWRHVWDEOLVK6HRXO&LW\6XEZD\&RQVWUXFWLRQ Co., Ltd. The company started the construction after signing an agreement with the Seoul PHWURSROLWDQJRYHUQPHQWRQWKHGHOHJDWLRQRIWKHFRQVWUXFWLRQDQGRSHUDWLRQRIWKHVXEZD\ 7KHSDUWLFLSDWLQJFRPSDQLHVKRZHYHUKHVLWDWHGWRGHGLFDWHWKHPVHOYHVWRWKHSURMHFWDV WKH\IRXQGYDULRXVVWXPEOLQJEORFNVDORQJWKHZD\WKHOLPLWHGLQYHVWPHQWFDSDFLW\RIWKH SDUWLFLSDWLQJFRPSDQLHVGLIILFXOW\LQVXSHUYLVLQJWKHFRQVWUXFWLRQEHFDXVHWKHVKDUHKROGHUV ZHUHDOVRFRQWUDFWRUVDQGWKHOLPLWHGSUR¿WDELOLW\RIDSXEOLFSURMHFW7KHSURVSHFWRIUHDOHVWDWH GHYHORSPHQWRQHRIWKHSULPHLQFRPHVRXUFHVIRUWKHSULYDWHLQYHVWRUVLQWKHFRQVWUXFWLRQRI XUEDQUDLOZD\VZDVQRWJRRGHLWKHUGXHWRDJRYHUQPHQWUHJXODWLRQWRUHVWULFWWKHUHDOHVWDWH LQYHVWPHQWE\FRQJORPHUDWHV6HRXO&LW\WKXVFKDQJHG6HRXO&LW\6XEZD\&RQVWUXFWLRQ&R /WGWRDSXEOLFFRUSRUDWLRQDIWHUREWDLQLQJDJRYHUQPHQWDSSURYDOIRUVXFKLQ$VDUHVXOW 6HRXO0HWUR/LQHDQGZHUHEXLOWQRWE\6HRXO&LW\ VVXEZD\FRQVWUXFWLRQKHDGTXDUWHUVEXW E\6HRXO&LW\6XEZD\&RUSRUDWLRQZKLFKZDVODWHUUHQDPHG³6HRXO0HWUR´

0HWUR/LQHZDVGHVLJQHGDVDNPORQJOLQHWKDWZRXOGFRQQHFW%\XNMHP\XQ *R\DQJJXQ*\HRQJJLGRORFDWHGZHOOSDVWWKHFLW\OLPLWVWR

7KHSURSRVHGURXWHRI0HWUR/LQHDQGKDGWRFURVVWKHROGWRZQDVWKHVWUHHWVWKHUHZHUH quite narrow while the roadways were riddled with buildings on the surface and with pipes and FDEOHVXQGHUJURXQG0RUHRYHUDVWKH0HWUR/LQHDQGSDVVHGXQGHU0HWUR/LQHDQGDQ HYHQGHHSHUH[FDYDWLRQIURPWKHVXUIDFHFRXOGDJJUDYDWHWKHFLW\ VDOUHDG\GHWHULRUDWLQJWUDI¿F Furthermore, the poor geological quality of the construction site required additional buttressing WRSUHYHQWDFDYHLQGXULQJWKHWXQQHOERULQJZKLFKPD\LQFXUFRVWRYHUUXQVDQGPD\EULQJ

15 Chapter 2 16 XEZD\VGXULQJWKH WLRQRI0HWUR/LQHDQG UDFNRINPLWUHTXLUHG HHULQJURDGPDSZKLFKZDV JHPHQWLQIRUPDWLRQV\VWHP RI0HWUR/LQHDQG7KH GWKHPDQDJHPHQWRIWKH¿UVW DWLRQ2I¿FHPDQDJLQJ0HWUR FWLRQPHWKRGDWXQQHOERULQJ QJ¿UPZDVLQWURGXFHG :LWKWKHFRPSOHWLRQRI0HWUR HDUWKZRUNFRQVWUXFWLRQWUDFN  GLYLGHGEHWZHHQFRQVWUXFWLRQDQG 6HRXO&LW\6XEZD\&RUSRUDWLRQ HFWPDQDJHPHQWPHWKRGWKH¿YH

Construction in the tunnel section of Seoul Metro Line 3
Construction in the tunnel section of Seoul Metro 7KHFRPSHWHQWDXWKRULWLHVWKDWJRYHUQHGWKHPDQDJHPHQWRIWKHV $V0HWUR/LQHDQGFURVVHGWKHFLW\FHQWHUZLWKDFRPELQHGW RSHUDWLRQUDLVHGFRQFHUQDERXWLWVORZPDQDJHPHQWHI¿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special attention during the construction to many complicated operational elements along the special attention during the construction to many WUDFN)RUDPRUHVFLHQWLILFSURMHFWPDQDJHPHQWDSURMHFWPDQD DERXWVDIHW\ZRUULHV7RDGGUHVVWKHVHLVVXHVWKH1$70FRQVWUX WHFKQRORJ\FRGHYHORSHGE\DQ$XVWUDOLDQDQG-DSDQHVHHQJLQHHUL 1.6 Construction of the Second-Phase Seoul Metro Lines

7KHPDVVLYHGHEWLQFXUUHGGXULQJWKHFRQVWUXFWLRQRIWKHILUVWSKDVH6HRXOPHWUROLQHV FRXSOHGZLWKWKHPRXQWLQJORVVGXHWRWKHOHVVWKDQH[SHFWHGSDVVHQJHUWXUQRXWHPHUJHGDVD SUHVVLQJVRFLDOLVVXH8QGHUVXFKVRFLDOFLUFXPVWDQFHVLWZDVGLI¿FXOWWRVWDUWDGLVFXVVLRQRQ DQRWKHUURXQGRIVXEZD\FRQVWUXFWLRQ)RUWXQDWHO\KRZHYHUWKHQXPEHURIVXEZD\SDVVHQJHUV LQFUHDVHGE\DQQXDOO\WKDQNVWRWKHSURDFWLYHVDOHVHIIRUWVRI6HRXO&LW\6XEZD\ &RUSRUDWLRQWKHZRUVHQLQJWUDI¿FFRQJHVWLRQGXHWRWKHUDSLGSUROLIHUDWLRQRIDXWRPRELOHVDQG the gradual acclimatization of the citizens to subway rides. Beginning in the late 1980s, the Seoul metro subway cars began to be crowded with passengers to an intolerable point.

:LWKWKHXUEDQWUDI¿FFRQJHVWLRQVWLOOORRPLQJODUJHDVRQHRIWKHPRVWSUHVVLQJVRFLDOLVVXHV DOOWKHSUHVLGHQWLDOFDQGLGDWHVLQWKHHOHFWLRQSOHGJHGWRH[SDQGWKHFLW\ VVXEZD\QHWZRUN :LWKWKHVRFLRSROLWLFDOFLUFXPVWDQFHVULSHIRUDQRWKHUURXQGRIVXEZD\FRQVWUXFWLRQSURMHFWVWKH 6HRXOPXQLFLSDOJRYHUQPHQWHVWDEOLVKHGDSODQWREXLOGWKHVHFRQGSKDVH6HRXOPHWUROLQHV7KH VHFRQGSKDVHOLQHVZRXOGFRQVLVWRIIRXUQHZVOLQHVWRWDOLQJDQGNPORQJH[WHQVLRQVRI WKHH[LVWLQJOLQHV0RUHRYHU6HRXO6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVZDVVHWXSWRKDQGOHWKH FRQVWUXFWLRQ7KHRI¿FHZDVVWDIIHGZLWK6HRXOFLW\RI¿FLDOVDUPHGZLWKVXEZD\FRQVWUXFWLRQ experience, and with construction specialists on loan from Seoul Subway Corporation.

'HVSLWHWKHFRQVHQVXVRQWKHQHHGIRUWKHVHFRQGSKDVHPHWUROLQHVWKHFRQVWUXFWLRQSODQ IRUDOOWKHOLQHVKDG\HWWREHHVWDEOLVKHGGXHWRWKHGLI¿FXOW\RIOLQLQJXS¿VFDOVXSSRUWIRUWKH SURMHFW6HRXO&LW\DQQRXQFHGDSODQWREXLOGDNPORQJH[WHQVLRQRIWKHH[LVWLQJOLQHVDQG DNPORQJWUDFNRI0HWUR/LQHZLWKDPXQLFLSDOEXGJHWLQWKH¿UVWVWDJHIROORZHGE\WKH VHFRQGVWDJHFRQVWUXFWLRQRIWKHUHPDLQLQJNPORQJWUDFNVRQDORQJWHUPEDVLV:LWKWKH H[SORGLQJURDGZD\WUDI¿FRIRYHURQHPLOOLRQUHJLVWHUHGDXWRPRELOHVLQ6HRXOLQWKHVWKH JRYHUQPHQWODLGRXWDSODQWRVXSSRUW6HRXO&LW\LQWKHFRQVWUXFWLRQRIWKHQHZPHWUROLQHV

7KHSODQVSHFL¿HGWKDWWKHNPORQJWUDFNRULJLQDOO\VFKHGXOHGWREHEXLOWLQWKHORQJUXQ would be completed by 1993, with the construction of the remaining tracks to be started right DZD\DQGWKDWD¿VFDOOLQHXSDPRXQWLQJWRDERXWRIWKHWRWDOFRVWZRXOGEHJXDUDQWHHG E\WKHFHQWUDOJRYHUQPHQW7KH6HRQJQDPVHFWLRQRI0HWUR/LQHKRZHYHUZRXOGEH ¿QDQFHGHQWLUHO\E\WKHJRYHUQPHQWDVLWZDVSXUVXHGDVSDUWRIWKHJRYHUQPHQW VPHWURFLW\ transportation scheme.

 Chapter 2 18 (unit: km) Rails Overground \WKHRSHQLQJRIWKH HRXO0HWUROLQHV QQHOERULQJPHWKRGWR SDVVXQGHU+DQ5LYHUE\ DQGFRXOGEHÀDZOHVVO\ LQWKHVHFRQGSKDVH RIORFRPRWLYHHQJLQHHUVWR WKHODVWRIWKHVHFRQGSKDVH WKHWXQQHOERULQJPHWKRGLQ OWV'HVSLWHDOOWKHFKDOOHQJHV Method PEHORZWKHULYHUEHG QHGLQIROORZHGE\WKH LQWKHUDLOFDUVWKDWFDQUXQRQ VWDJHVHFWLRQVUHVSHFWLYHO\LQ IURPWKHVXUIDFHPHWKRGWKH FHLQFRQVWUXFWLQJXQGHUZDWHU ZDVXQOLNHO\DVWKHVHFWLRQLV DVH6HRXO0HWUROLQHVHPSOR\HG Tunnel Boring RWKHQGVRI0HWUR/LQHDQG GHVLJQHGIURPWKHRXWVHWZLWKRXW QVWUXFWLRQDOOZLWKORFDOWHFKQRORJLHV Surface Method Excavation-from-the- 174.8 (100%) 81.4 (46.5%) (49.3%) 86.0 7.4 (4.2%) 124.5 (100%) 72.5 (58.2%) (16.9%) 21.0 31.0 (24.9%) 7DEOH!&RQVWUXFWLRQPHWKRGLQWKHÀUVWDQGVHFRQGSKDVH6 Line Length Total First-phase Second-phase Seoul Metro lines Seoul Metro lines 7KH*DQJGRQJVHFWLRQRI0HWUR/LQHRSHQHGLQIROORZHGE 7KH

:KLOHDORFDOJRYHUQPHQWXVXDOO\FRQVLJQVWKHPDQDJHPHQWRIDUDLOWRDVLQJOHSXEOLF HQWHUSULVH6HRXOKDVWZR6HRXO0HWURIRUWKH¿UVWSKDVHOLQHVDQG6HRXO0HWURSROLWDQ5DSLG 7UDQVLW&RUSRUDWLRQIRUWKHVHFRQGSKDVHOLQHV:KDWOHGWKH6HRXOPXQLFLSDOJRYHUQPHQW WRFKRRVHWKHGXDOPDQDJHPHQWV\VWHPLVWKHIDFWWKDWWKH¿UVWDQGVHFRQGSKDVHOLQHVKDYH GLIIHUHQWOHYHOVRIRSHUDWLRQHI¿FLHQF\7KHVHFRQGSKDVHOLQHVQHHGHGIHZHURSHUDWLQJVWDIIWKDQ WKH¿UVWSKDVHOLQHVDVWKH6HRXO0HWURPDQDJHPHQWZDVDXWRPDWHGE\HPSOR\LQJWKHDXWRPDWLF fare collection and automatic train operation systems. Another reason for the separation of the PDQDJHPHQWRIWKH6HRXO0HWURUDLOVLVWRIUHHWKHVHFRQGSKDVHOLQHVIURPWKHPDVVLYH¿QDQFLDO EXUGHQVFDUULHGRYHUIURPWKHEXLOGLQJRI6HRXO0HWUR/LQHDQG

Engineering stages of the underwater tunnel for Metro Line 5 built under the riverbed of Han River

1.7 Construction of the Third-Phase Seoul Metro Lines

7RKHOSSUHSDUHIRUWKHPXOWLFRUHGHYHORSPHQWRIWKHFLW\DQGWKHORRPLQJH[SDQVLRQRIWKH JUHDWHUPHWURSROLWDQDUHDWKH6HRXOPXQLFLSDOJRYHUQPHQWSURSRVHGDSODQIRUWKHWKLUGSKDVH subways that would permanently shift the balance of the public transportation to the urban rails. 7KHFRQVWUXFWLRQSODQZKLFKLQFOXGHGWKHFRQVWUXFWLRQRIIRXUQHZOLQHVWRWDOLQJDQGNP ORQJH[WHQVLRQVRI0HWUR/LQHDLPHGWRVHUYHWKHDUHDVWKDWZHUHVWLOOXQGHUVHUYHGE\WKH XUEDQUDLOZD\VHYHQDIWHUWKHFRPSOHWLRQRIWKHVHFRQGSKDVHPHWUROLQHV7KH$VLDQ¿QDQFLDO

19 Chapter 2 20 DQGWKHH[LVWLQJ0HWUR KRVHQDVWKHRSHUDWRUDQG LRQIRUWKHDIIHFWHGODQGV VWDJH NP DQGWKLUG KHWKLUGSKDVH6HRXO0HWUR H[WHQVLRQRI0HWUR/LQH QVWUXFWLRQRIWKHILUVWSKDVH UR/LQHFRQVLVWVRIVRIWVRLO J\HVSHFLDOO\LQ([SUHVV%XV VDIHO\ERUHWKHNPORQJ FWLRQ¿QDQFHGHQWLUHO\E\WKH UXFWLRQRIWKH¿UVWVWDJHOHJ  PHWUROLQHVOHDYLQJRQO\0HWUR ZD\V0HWUR/LQHRSHUDWHVWKH RZHUERGLHVDQGVKRUWHUOHQJWKV WUDFNVRIWKHQHZDLUSRUWUDLOZD\ FNV$V0HWUR/LQHKDVSOHQW\ WKH\ZRXOGQRWFKDQJHWKHFXUUHQW RQDO$VVHPEO\%XLOGLQJ2O\PSLF RQ RSHQLQJLQUHWXUQIRULWVLQYHVWPHQW QDQFHWKHHQWLUHSURMHFW$VDUHVXOW WKHIDUHDUELWUDULO\)XUWKHUPRUHWKH 0HWUR/LQHDSULYDWHO\IXQGHGSURMHFWWKDWVWDUWHGWKHFRQVW ([FOXGLQJWKHFRVWRIEXLOGLQJWKHVXSHUVWUXFWXUHDQGFRPSHQVDW )RUWKH¿UVWWLPHLQWKHKLVWRU\RIWKH6RXWK.RUHDQXUEDQUDLO JRYHUQPHQW VWDJH NP OHJVRI0HWUR/LQHDUHFXUUHQWO\XQGHUFRQVWUX /LQHSRVHGVRPHGLIILFXOWHQJLQHHULQJFKDOOHQJHV7KHVHFRQG tunnel, the shield tunnel boring method was employed. The construction engineers had to The construction engineers had to employed. tunnel, the shield tunnel boring method was RYHUFRPHYDULRXVKXUGOHVDORQJWKHOLQHZLWKWKHLURZQWHFKQROR 7HUPLQDO6WDWLRQZKHUHWKH*DQJQDPXQGHUJURXQGVKRSSLQJDUFDGH ZDVJLYHQWKHULJKWWRUXQ0HWUR/LQHIRU\HDUVDIWHULWV and stations, which would amount to 53% of in the rolling stocks and its construction of tracks entire cost. RIWUDQVIHUVWDWLRQVWKHOLQH VSULYDWHRSHUDWRUFDQQRWUDLVH FXUUHQWSULYDWHRSHUDWRUZDVVHOHFWHGRQWKHSUHFRQGLWLRQWKDW IDUHV\VWHP$SULYDWHFRQVRUWLXPLQFOXGLQJ+\XQGDL5RWHPZDVF NP LQRSHQHGWRWKHSXEOLFLQ7KH A tunnel in Yoido of Seoul Metro Line 9 under construction

2. History of the Urban Railway Development in Regional Cities

2.1 Construction of the Busan Urban Railways

%XVDQWKHVHFRQGODUJHVWPHWURSROLWDQFLW\LQWKHFRXQWU\VDZDMXPSLQWKHWUDI¿FGHPDQG LQWKHVGXHWRWKHFRQWLQXHGJURZWKRIWKHSRSXODWLRQDQGRIWKHHFRQRPLFDFWLYLWLHVLQ WKHUHJLRQ7KHFLW\ VLQVXI¿FLHQWURDGV\VWHPKRZHYHUVRRQUHYHDOHGLWVOLPLWVLQKDQGOLQJWKH SDVVHQJHUWUDI¿FDQGWKHIUHLJKWVEHLQJH[SRUWHGDQGLPSRUWHGYLD%XVDQ3RUW$FFRUGLQJO\WKH %XVDQPXQLFLSDOJRYHUQPHQWVRXJKWWRGHYHORSDQHZXUEDQWUDQVLWV\VWHPEDVHGRQVXEZD\V ,Q%XVDQ&LW\ODXQFKHGWKH%XVDQ&LW\6XEZD\3ODQQLQJ7HDPXQGHUWKHXUEDQSODQQLQJ EXUHDXDQGFDPHXSZLWKWKHXUEDQKLJKVSHHGUDLOZD\SODQWKDWLQFOXGHGEXLOGLQJ¿YHPHWUR lines.

,QDSODQWREXLOGWKHNPORQJWUDFNRI%XVDQ0HWUR/LQHDORQJ-RRQJDQJURWKH FLW\ VNH\WUDI¿FD[LVZDVFRQ¿UPHGIROORZHGE\WKHODXQFKRI%XVDQ6XEZD\&RQVWUXFWLRQ +HDGTXDUWHUVLQ-DQXDU\%XVDQ0HWUR/LQHZDVFRQVWUXFWHGLQIRXUVWDJHVZLWKWKH¿UVW VWDJH NP VWDUWLQJLQ-XQHDQGFRPSOHWHGLQ-XO\DQGWKH¿QDODQGIRXUWKVWDJH NP VWDUWLQJLQ-XO\DQGRSHQLQJLQ-XO\

$V-RRQJDQJURZDVFRQJHVWHGZKLOHSDVVLQJWKHFLW\FHQWHUWKHH[FDYDWLRQIURPWKHVXUIDFH PHWKRGZDVSULPDULO\XVHGWRPLQLPL]HWKHKROGXSDQGWKHGDPDJHWRWKHDGMDFHQWEXLOGLQJV 7KHH[FDYDWHGVHFWLRQVKRZHYHUKDGWRSDVVWKHUHFODLPHGJURXQGDQGZHUHORFDWHGXQGHUWKH VHDZDWHUPDNLQJLWQHFHVVDU\WRLQWURGXFHWKHVOXUU\ZDOOPHWKRGGXULQJWKHH[FDYDWLRQIRUWKH ¿UVWWLPHLQWKHFRXQWU\$OVRIRUWKH¿UVWWLPHLQWKHFRXQWU\PLGVL]HGWUDLQVZHUHLQWURGXFHGWR

21 Chapter 2 22 VWDERXWHLJKW\HDUV LOZD\URVHDVWKHNH\SXEOLF DQJURZKLOHWKHWUDI¿FDORQJ PGRVWDUWHG,WRSHQHGWRWKH RIWKHFLW\7KHFRQVWUXFWLRQ \DIWHUWKHHQDFWPHQWRI WKHFRQVWUXFWLRQRIDGGLWLRQDO HLUERG\ZDVPDGHRIVWDLQOHVV UWKHFRQVWUXFWLRQRIWKH SDSODQLQWREXLOG%XVDQ DQGZDVFRPSOHWHGLQ-XQH DQGWREXLOGPRUHXUEDQUDLOZD\V RUDWLQJ7KHPDVVLYHGHEWLQFXUUHG

Inauguration of Busan Metro Line 1
Inauguration of Busan Metro 7KHRSHQLQJRI%XVDQ0HWUR/LQHHDVHGWKHFRQJHVWLRQLQ-RRQJ )ROORZLQJWKHRSHQLQJRI%XVDQ0HWUR/LQHDQGWKHXUEDQUD WKHRWKHUNH\LQQHUVWUHHWVRIWKHFLW\ZDVFRQWLQXRXVO\GHWHUL IURPEXLOGLQJ0HWUR/LQHKRZHYHUPDGHLWGLI¿FXOWWR¿QDQFH XUEDQUDLOZD\V7RKHOSUHOLHYHWKH¿QDQFLDOEXUGHQRIWKHFLW\ WKH/DZRQ%XVDQ8UEDQ7UDQVLW$XWKRULW\7KHFRUSRUDWLRQVHWX 0HWUR/LQHZKLFKZRXOGFRQQHFWWKHHDVWHUQDQGZHVWHUQVLGHV WKHJRYHUQPHQWHVWDEOLVKHG%XVDQ8UEDQ7UDQVLW$XWKRULW\LQ-XO RIWKH¿UVWVWDJHOHJ NP RIWKHOLQHVWDUWHGLQ1RYHPEHU ZKLOHWKHVHFRQGVWDJHOHJ NP ZDVFRPSOHWHGLQ$XJX DIWHUWKHVWDUWRIWKHFRQVWUXFWLRQLQ2FWREHU,Q'HFHPEH NPORQJH[WHQVLRQRI0HWUR/LQHWR

$VWKH0LQDP$QS\HRQJOHJRI%XVDQ0HWUR/LQHZDVGHVLJQHGDVDOLJKWUDLOZD\LWZDV ODWHUUHQDPHG³%XVDQ0HWUR/LQH´7KH¿UVWOLQHLQWKHFRXQWU\WRKDYHOLJKWUDLOFDUVUXQQLQJ RQWKHWUDFNLWVFRQVWUXFWLRQVWDUWHGLQ'HFHPEHUDQGZDV¿QLVKHGLQ0DUFK7KH WUDLQVHWQDPHG³.$*7´FRQVLVWHGRIUXEEHUZKHHOHGFDUVGHYHORSHGE\GRPHVWLF¿UPV with each train set consisting of six cars. A guide track is laid out in the middle of the main rails, and complete unmanned operation is possible along the line.

K-AGT light railcars running on Busan Metro Line 4

0HDQZKLOHDVSDUWRIWKHPHWURSROLWDQDUHDWUDQVSRUWDWLRQVFKHPHWKHJRYHUQPHQWVWXGLHGWKH possibility of building light railways to connect the metropolitan city and its surrounding areas, IROORZHGE\WKHGHFLVLRQLQWREXLOG%XVDQ*LPKDH/LJKW5DLOZD\WKH¿UVWSLORWWUDFNWKDW ZRXOGFRQQHFW%XVDQDQG*LPKDHWKHFLW\ORFDWHGZHVWRI%XVDQ7KHSURMHFWZDVLQWHQGHG

23 Chapter 2 24 LVUHTXLUHGWRFRPSHQVDWH QVWDWHGWKDWWKUHHVXEZD\ RISURVSHFWLYHSDUWLFLSDQWV RYHUQPHQWIRUPHGDVXEZD\ NPZLWKVWHHOZKHHOHG LQ-DQXDU\RIWKH0DVWHU FHQWUDWHGLQWKHFLW\FHQWHUZKLOH WKHLQHYLWDEOHWUDI¿FFRQJHVWLRQ IDOOVEHORZRIWKHSURMHFWHG FWLRQLQWKHVHFRQGDQGWKLUGVWDJHV WRDQGWKHSURMHFWFRPSOHWLRQ HFWWKHJRYHUQPHQWLQWURGXFHGWKH RQKRZWRHDVHWKH¿QDQFLDOEXUGHQ

Railcars Gimhae-Busan Light Railway running on
$VLQJOHFRUHFLW\'DHJXKDVPRVWRILWVXUEDQIXQFWLRQVFRQ 2.2 Construction of Daegu Urban Railway WKHSULYDWHLQYHVWRUVIRUWKHGLIIHUHQFHLIWKHDFWXDOUHYHQXH of passengers was As the actual number agreement. stipulated in the working amount, as SURMHFWHGWREHORZHUWKDQWKHLQLWLDOHVWLPDWHGHEDWHVUDJHG RIWKHORFDOJRYHUQPHQWGHOD\LQJWKHVWDUWRIWKHFRQVWUXFWLRQ WR6HSWHPEHU7KHWRWDOOHQJWKRIWKHHOHYDWHGWUDFNZDV by The railcars were made the track. sets consisting of two railcars made running on train AGT +\XQGDL5RWHP WREHIXQGHGE\SULYDWHLQYHVWRUVEXWVDZDQLQVXI¿FLHQWQXPEHU 7RVWLPXODWHWKHSDUWLFLSDWLRQRISULYDWHLQYHVWRUVLQWKHSURM PLQLPXPUHYHQXHJXDUDQWHHVFKHPHLQZKLFKWKHORFDOJRYHUQPHQW RYHUWKHFRXUVHRILWVXUEDQGHYHORSPHQW7KH'DHJXPXQLFLSDOJ SODQQLQJWHDPLQ6HSWHPEHUIROORZHGE\WKHHVWDEOLVKPHQW DOOLWVURDGZD\VUDGLDWHWRDQGIURPWKHGRZQWRZQUHVXOWLQJLQ 3ODQRQWKH&RQVWUXFWLRQ 2SHUDWLRQRI8UEDQ5DLOZD\V7KHSOD OLQHVZRXOGEHEXLOWLQWKH¿UVWVWDJHIROORZHGE\WKHFRQVWUX of three additional lines, including a belt line. 'DHJX0HWUR/LQHGHVLJQHGWRFRQQHFWWKHVRXWKZHVWHUQDQGHDVWHUQSDUWVRI'DHJXYLD WKHFLW\FHQWHUVDZWKHVWDUWRIFRQVWUXFWLRQLQ'HFHPEHU2Q$SULOZHOOLQWR WKHIXOOIOHGJHGFRQVWUXFWLRQRIWKHOLQH/1*JDVOHDNLQJIURPDEURNHQJDVSLSHIOHZLQWR the Sangindong construction site through the sewer and exploded after being ignited by a still XQFRQ¿UPHGVRXUFHNLOOLQJSHUVRQVDQGLQMXULQJ)ROORZLQJWKHWUDJHG\VRPHSDUWVRI WKHVXEZD\VWUXFWXUHZHUHHLWKHUGHPROLVKHGRUUHWUR¿WWHGDIWHUWKHFRQGXFWRIDVDIHW\LQVSHFWLRQ RQWKHVXSHUVWUXFWXUH7KHILUVWNPOHJRI'DHJX0HWUR/LQHRSHQHGWRWKHSXEOLFLQ 1RYHPEHUIROORZHGE\WKHRSHQLQJRIWKHHQWLUHOLQH NP LQ0D\,Q LQWKHPLGGOHRIWKHFRQVWUXFWLRQDGHFLVLRQZDVPDGHWRH[WHQG0HWUR/LQHE\NP7KH FRQVWUXFWLRQZDV¿QDOO\FRPSOHWHGLQ0D\

2Q)HEUXDU\ZHOODIWHUWKHRSHQLQJRI0HWUR/LQHD\HDUROGGHPHQWHGPDQ VHWDWUDLQRQ¿UHLQ-RRQJDQJUR6WDWLRQNLOOLQJSHUVRQVDQGLQMXULQJ,WZDVDVLPSOH case of arson, but the absence of a subway safety management system combined with the LQÀDPPDEOHPDWHULDOVXVHGLQWKHLQWHULRURIWKHUDLOFDUVZRUVHQHGWKHDFFLGHQWE\DQRUGHURI PDJQLWXGH7KXVDIWHUWKHGLVDVWHUWKHJRYHUQPHQWRUGHUHGWKHFKDQJLQJRIWKHLQWHULRUPDWHULDOV RIWKHXUEDQDQGPHWURSROLWDQUDLOFDUVWRQRQÀDPPDEOHVDQGWLJKWHQHGWKHVDIHW\VWDQGDUGVRI the urban railway.

Fire in Daegu Metro Line 1

'DHJX0HWUR/LQHZDVGHVLJQHGWRFRQQHFWWKHZHVWHUQDQGVRXWKHDVWHUQSDUWVRI'DHJX YLDWKHFLW\FHQWHUZLWKPDQ\NH\URDGZD\VEXVWOLQJZLWKWUDIILFFULVVFURVVLQJWKHOLQH7R UHOLHYHWKHFRQJHVWLRQGXULQJWKHFRQVWUXFWLRQWKHHQWLUHVHFWLRQFURVVLQJWKHFLW\FHQWHUZDV

25 Chapter 2 26 \WKDWZLOOFRQQHFWWKH LGHZDONVZHUHQDUURZHG GWKURXJKDQLQWHUQDWLRQDO F$VDQHOHYDWHGURDGZD\ PORQJOLQHZDVFRPSOHWHGLQ QWWKHVPRNHIURPÀRZLQJLQWR QJVDQVL*\HRQJVDQJEXNGRLQ WKHFDUVZHUH¿WWHGZLWKQRQ VDQGFRQVWUXFWLRQKROHV(YHQ KHXSSHUZHLJKWZDVIDFWRUHGLQ 0HWUR/LQHWKHUDLOFDUERGLHV UWHGLQ-XO\DORQJWKHHQWLUH U$VWUDLQVHWVFRQVLVWLQJRIWKUHH KHFRQVWUXFWLRQVWDUWHGLQ-DQXDU\ VLWVFRQVWUXFWLRQFRVWLVHVWLPDWHG QV0HDQZKLOHWKHFLW\VWDUWHGWKH WKHWXQQHOVWRSQRWFK¿UHSUHYHQWLRQ

Extension of Daegu Metro Line 2 of Daegu Metro Extension
'DHJX0HWUR/LQHZDVGHVLJQHGDVDPRQRUDLOW\SHOLJKWUDLOZD 7KHFRQWUDFWRUVZKRZRXOGEXLOG'DHJX0HWUR/LQHZHUHVHOHFWH WREHPXFKORZHUWKDQWKDWRIWKHVXEZD\V7KHFRQVWUXFWLRQVWD in 2014. for completion route, and is targeted UDLOFDUVHDFKZLOOEHUXQQLQJDORQJWKHHOHYDWHGPRQRUDLOWUDFN ÀDPPDEOHRUKLJKO\ÀDPHUHVLVWDQWPDWHULDOV0RUHRYHUWRSUHYH WKHVWDWLRQVLQFDVHD¿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of the superstructure. during the construction in which the bidders were base” bidding was introduced as well, bidding process while “turnkey REOLJHGWRELGIRUERWKWKHGHVLJQZRUNDQGWKHFRQVWUXFWLRQ7 DORQJWKHHQWLUHURXWHRI'DHJX0HWUR/LQHDQGWKHN 2.3 Construction of Incheon Urban Railways

$VLQJOHFRUHFLW\ZLWKDQDERXWPLOOLRQSRSXODWLRQWKDWKDGJURZQDORQJWKHSRUW,QFKHRQ ZDVHYROYLQJLQWRDPXOWLFRUHFLW\GXHWRWKHSUROLIHUDWLRQRIKRXVLQJSURMHFWVDQGLQGXVWULDO FRPSOH[HV0RUHRYHUWKDQNVWRWKHFLW\ VJHRJUDSKLFSUR[LPLW\WR6HRXOWKHGHPDQGWKHUHLQ IRUPHWURSROLWDQWUDQVLWZDVDOVRJURZLQJ'HVSLWHWKLV*\HRQJLQ([SUHVVZD\DQG*\HRQJLQ National Railroad, the two key transit axes of the city, were laid out along the east and west axes WRHQKDQFHWKHFLW\ VOLQNDJHZLWK6HRXO$VDUHVXOWWKHWUDI¿FKDGJURZQFRQJHVWHGLQWKHQHZ WRZQVEXLOWLQ*\H\DQJJXDQG

7KH,QFKHRQPXQLFLSDOJRYHUQPHQWSODQQHGWREXLOGWKH*\XOK\HRQ'RQJPDNOHJRI,QFKHRQ 0HWUR/LQH WRWDOOHQJWKNPFRPPHUFLDORSHUDWLRQNP ZLWKDQDLPWRUHFRQQHFW WKHQRUWKHUQDQGVRXWKHUQSDUWVRIWKHFLW\GLYLGHGE\*\HRQJLQ/LQHZKLOHDWWKHVDPHWLPH HDVLQJWKHFRQJHVWLRQLQWKHFLW\FHQWHUE\UHURXWLQJSDUWRIWKHWUDI¿FFRQFHQWUDWHGRQWKHVXUIDFH WRWKHXQGHUJURXQG8QOLNHWKH6HRXOVXEZD\VWKHUDLOFDUVRI,QFKHRQ0HWUR/LQHZHUHPLG sized trains, each made up of eight cars.

7KHFRQVWUXFWLRQRIWKHSODQQHGVHFWLRQRI,QFKHRQ0HWUR/LQHZDVVWDUWHGLQDQGZDV completed in 2005, but in the process of its construction, the construction of Gyeyang Station LQWKH$LUSRUW5DLOZD\ZDVFRQ¿UPHG7RDOORZWUDQVIHUVDW*\H\DQJ6WDWLRQEHWZHHQ,QFKHRQ 0HWUR/LQHDQGWKH$LUSRUW5DLOZD\WKHFRQVWUXFWLRQRIWKHNPORQJH[WHQVLRQRI0HWUR /LQHVWDUWHGLQ'HFHPEHUEHIRUHRSHQLQJWRWKHSXEOLFLQ0DUFK,QDGGLWLRQWR SURYLGHUDLOVHUYLFHVLQ6RQJGR,QWHUQDWLRQDO%XVLQHVV'LVWULFWDNPORQJH[WHQVLRQEHWZHHQ 'RQJPDNDQG6RQJGR,QWHUQDWLRQDO%XVLQHVV'LVWULFWZDVDGGHGWRWKHOLQHDIWHUFRQVWUXFWLRQ EHWZHHQ-DQXDU\DQG-XQH

0HDQZKLOH,QFKHRQ&LW\KDVEHHQEXLOGLQJ0HWUR/LQH NP WRFRSHZLWKWKHJURZLQJ WUDI¿FLQ*HRPGDQ1HZ7RZQQRUWKZHVWRI,QFKHRQDVZHOODVZLWKWKHWUDI¿FLQWKHROGFLW\ FHQWHU6WHHOZKHHOHGOLJKWUDLOWUDLQVHDFKFRQVLVWLQJRIWZRFDUVZLOOEHUXQQLQJRQWKHWUDFN GULYHQE\DQDXWRSLORW0HWUR/LQHLVWDUJHWHGWRRSHQWRWKHSXEOLFLQ

2QWKHRWKHUKDQGLWZDVSURSRVHGWKDWDQHZUDLOZD\EHFRQVWUXFWHGWRHDVHWKHRYHUFURZGLQJ of Gyeongin Line as well as to connect the cities west of the metropolitan area and the Gangnam GLVWULFWLQ6HRXO$FFRUGLQJO\DSODQWRH[WHQG6HRXO0HWUR/LQHXSWR,QFKHRQVLDQG %XFKHRQVLZDVVHWXSVRWKDWWKHSDVVHQJHUVFDQWUDYHOGLUHFWO\WRWKH*DQJQDPGLVWULFWZKLOH

 Chapter 2 28 HURIDXWRPRELOHVDQG GZLWKRXWDQ\YLEUDWLRQ DQJMXDVWKHFLW\PHUJHG FNDVSDUWRIWKHQDWLRQDO GLQJ,QFKHRQ,QWHUQDWLRQDO QUXQQLQJEHWZHHQ6KDQJKDL RQEHWZHHQ2QVX6WDWLRQDQG QHFWLQJ,QFKHRQ,QWHUQDWLRQDO VSHHG-DSDQHVHPDJOHYWUDLQ FRXQWU\DUHORZVSHHGWUDLQV UDLQGHVLJQHGZLWKKRPHJURZQ ODWHDERXWVHYHQ\HDUVDIWHU DJOHYWUDLQVWKDWDUHFXUUHQWO\XQGHU

Construction of the Incheon Metro Line extension to Songdo to Line extension Construction of the Incheon Metro
,QFKHRQ&LW\KDVEHHQZRUNLQJWREXLOGDQXUEDQPDJOHYWHVWWUD 8UEDQWUDQVSRUWDWLRQURVHDVRQHRIWKHSUHVVLQJFRQFHUQVLQ*Z Airport and its surrounding areas, it is targeted to open to the public in late 2013, about three to open to the public in late 2013, about three areas, it is targeted Airport and its surrounding \HDUVDIWHUWKHVWDUWRILWVFRQVWUXFWLRQLQ7KHPDJOHYW WKDQNVWRWKHOHYLWDWLRQRIWKHWUDLQVHW7KHUHDUHRQO\WZRP FRPPHUFLDORSHUDWLRQD*HUPDQGHYHORSHGKLJKVSHHGPDJOHYWUDL 3XGRQJ,QWHUQDWLRQDO$LUSRUWDQGWKHQHZWRZQFHQWHUDQGDORZ UXQQLQJLQ1DJR\D$OOWKHXUEDQPDJOHYWUDLQVGHYHORSHGLQWKH 2.4 Construction of Gwangju Urban Railways UHVHDUFKDQGGHYHORSPHQWHQGHDYRU$NPORQJWHVWWUDFNFRQ WHFKQRORJLHVFDQFUXLVHXSWRNPKZLWKRXWPDNLQJQRLVHDQ the domestic technologies in the region to publicize the excellence of and the test track was built DVZHOODVWRKHOSVXSSRUWWKHGHYHORSPHQWRIWKHDUHDVVXUURXQ Airport. %XS\HRQJJX2I¿FH6WDWLRQLVWDUJHWHGWRRSHQWRWKHSXEOLFLQ construction in 2005. the start of its DYRLGLQJDGHWRXUDORQJ*\HRQJLQ/LQH7KHNPORQJH[WHQVL ZLWK*ZDQJVDQJXDQG6RQJMHRQJVLLQDQGWKHJURZLQJQXPE WKHVXEVHTXHQWULVHLQWKHWUDI¿FLQWKHFLW\FHQWHUDGGHGPRUHZRUULHV7RDGGUHVVWKHLVVXH WKHFLW\SXVKHGIRU760 WUDI¿FV\VWHPVPDQDJHPHQW EXWVLPSO\VXSSO\LQJPRUHURDGVVRRQ UHYHDOHGOLPLWDWLRQVSURPSWLQJWKHFLW\WRFRQVLGHUWKHFRQVWUXFWLRQRIXUEDQUDLOZD\V7KHFLW\ HVWDEOLVKHGDPDVWHUSODQIRUWKHFRQVWUXFWLRQDQGRSHUDWLRQRI0HWUR/LQHDQGZKLFKZDV DSSURYHGE\WKHJRYHUQPHQWLQ0DUFK

,WZDVKRSHGWKDW*ZDQJMX0HWUR/LQHGHVLJQHGWRFRQQHFWWKHHDVWHUQDQGZHVWHUQSDUWV RIWKHFLW\YLDWKHFLW\FHQWHUZRXOGHDVHWKHWUDI¿FFRQJHVWLRQLQWKHGRZQWRZQDQGZRXOG KHOSSURPRWHWKHEDODQFHGJURZWKRIWKHFLW\7KHWXQQHOVRI*ZDQJMX0HWUR/LQHKDGWR SDVVEHORZWKHXQGHUJURXQGPDOOVDQGSDFNHGEXLOGLQJVLQWKHFLW\FHQWHU7RSUHYHQWFDYHLQRU FUDFNVDVKLHOGWXQQHOERULQJPDFKLQHZLWKDPUDGLXVVKLHOGDWWDFKHGWRLWWKHODUJHVWLQ WKHKLVWRU\RI6RXWK.RUHDQFRQVWUXFWLRQZDVXVHG,QWKH'RVDQDQG3\HRQJGRQJ6WDWLRQOHJ where the tunnel crossed under the Honam Line national railroad, a construction method that PLQLPL]HGWKHVLQNLQJRIWKHHDUWKZDVXVHGIRUWKH¿UVWWLPHLQWKHFRXQWU\

The shield tunnel boring method used in the construction of Gwangju Metro Line 1

7RLPSURYHWKHPDLQWHQDQFHHI¿FLHQF\UDLOFDUVPDGHE\+\XQGDL5RWHPZHUHSXUFKDVHGRQ the precondition that the key parts of the train sets should be localized. The railcar bodies were EXLOWZLWKDOXPLQXPIRUWKH¿UVWWLPHLQWKHFRXQWU\PDNLQJWKHPWLJKWO\VHDOHGDQGDERXW OLJKWHUWKDQWKHFRQYHQWLRQDOWUDLQV

7RHQVXUHWKHVDIHW\RIWKHSDVVHQJHUVYDULRXVILUHILJKWLQJHTXLSPHQWDQGHPHUJHQF\ SRZHUVXSSO\XQLWVZHUHLQVWDOOHGDQGWKHVXEZD\SODWIRUPVZHUHPRQLWRUHGE\FORVHGFLUFXLW

29 Chapter 2 30 ZDVVFKHGXOHGWREH VVLYHKRXVLQJSURMHFWV LWVRZQXUEDQUDLOZD\ KHSXEOLFLQ$SULO /LQHZDVGHVLJQHGDV LW\ VDGPLQLVWUDWLYHGLVWULFW HOLQHZDVVFKHGXOHGWREH GQHZWUDIILF$FFRUGLQJO\ FLDOFULVLV7KHVHFRQGVWDJH DQGWKHDLUFXUWDLQVZRXOG FOHVWKH¿QDQFLQJGLI¿FXOW\ WLRQVDUWZRUNVZHUHLQVWDOOHG HDWHGWXUQLQJWKHVWDWLRQVLQWR RWLDWLRQVIRUFRPSHQVDWLRQ,Q DJDLQVWWKHFRQVWUXFWLRQDQG UHIXQFWLRQVDQGWKHH[SDQVLRQ HHGLO\%\VKLIWLQJWKHIRFXVRI VWUXFWLRQLQ2FWREHU7KH EDQWUDI¿FFDXVHGVRPHVHULRXV DQVLRQRIWKHXUEDQDUHDZKLFK GDFKHDQGGLI¿FXOW\LQXVLQJWKH VXEZD\DQGOLJKWUDLOZD\ZKLFK URDGZD\WUDI¿FZDVVXFFHVVIXOO\ QVWDOOHGEHWZHHQWKHSODWIRUPVDQG VSRUWDWLRQZHUHVROYHG FRQVWUXFWLRQLQ$XJXVWEXWLWV 7KH¿UVWVWDJHOHJEHWZHHQ1RNGRQJDQG6DQJPX6WDWLRQ NP 'DHMHRQ&LW\VDZFRQWLQXHGSRSXODWLRQJURZWKWKDQNVWRVRPHPD ,Q)HEUXDU\'DHMHRQ&LW\DQQRXQFHGDPDVWHUSODQWREXLOG 2.5. Construction of Daejeon Urban Railways 2.5. Construction of WKHWXQQHOZRXOGEHWXUQHGRQWRHIIHFWLYHO\VXFNRXWWKHVPRNH EORFNWKHVPRNHEORZLQJIURPWKH¿UHLQWKHWXQQHO,QVRPHVWD WHOHYLVLRQFDPHUDV,QFDVHD¿UHEUHDNVRXWWKHYHQWLODWRUVL DQGVSDFHVIRUH[KLELWLRQVDQGVPDOOVFDOHSHUIRUPDQFHVZHUHFU cultural arenas. FRPSOHWHGE\-XO\DERXWVL[\HDUVDIWHUWKHVWDUWRILWV RSHQLQJZDVGHOD\HGWR$SULOLQWKHZDNHRIWKH$VLDQ¿QDQ OHJEHWZHHQ6DQJPXDQG3\HRQJGRQJ6WDWLRQ NP RSHQHGWRW April 2000. start of its construction in about eight years after the RIWKHFLW\ZDVZRUVHQLQJWKHSUREOHPVHYHQPRUHDVLWDWWUDFWH DEVRUEHGDQGWKDWWKHSUREOHPVUHODWHGWRWKHFLW\ VXUEDQWUDQ DQGWKHVXEVHTXHQWFKDQJHVLQWKHXUEDQHQYLURQPHQWXQWLOWKHF coupled with the rising personal incomes, local economy, The growing was expanded in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¿FLHQWFRQVWUXFWLRQWLPHGXHWRWKHSURFUDVWLQDWHGQHJ LQWKHZDNHRIWKH$VLDQILQDQFLDOFULVLVWKHFLYLOFRPSODLQWV 0DUFKWKH¿UVWVWDJHOHJFRQQHFWLQJ3DQDPDQG*RYHUQPHQW&RPSOH[6WDWLRQ NP  RSHQHGWRWKHSXEOLFIROORZHGE\WKHRSHQLQJLQ$SULORIWKHVHFRQGVWDJHOHJFRQQHFWLQJ *RYHUQPHQW&RPSOH[DQG%DQVHRN6WDWLRQ NP 7RHQVXUHWKHVDIHW\RIWKHSDVVHQJHUV VFUHHQGRRUVZHUHLQVWDOOHGLQDOOWKHVWDWLRQVRI'DHMHRQ0HWUR/LQH

Screen doors installed along the platforms of Line 1

3. History of the Metropolitan Railway Development in the Greater Seoul Area

5HWUR¿WWLQJWKH([LVWLQJ5DLOZD\V

7KHJRYHUQPHQWVHWXSDSODQWRHOHFWULI\WKHPHWURSROLWDQUDLOZD\VLQDPRYHWRHDVHWKH congestion in Seoul and to expand its urban reach while at the same time spreading the urban SRSXODWLRQWRWKHRWKHUVXUURXQGLQJDUHDV,QFRQVWUXFWLRQWRXSJUDGHWKH

Gyeongbu Line, the country's key trunk line, suffered from a chronic rail capacity shortage as WKHUDLOVZHUHVKDUHGE\WKHPHWURSROLWDQWUDLQVUXQQLQJRQWKH6HRXO6XZRQOHJDVZHOODVWKH LQWHUFLW\WUDLQVUXQQLQJDORQJWKH6HRXO%XVDQD[LV,WZDVFRQFOXGHGWKDWGRXEOHWUDFNLQJDORQH

31 Chapter 2 32 UDLOVWRDOORZWKHSDVVDJH DGVHWWOHGGRZQLQ,QFKHRQ XSJUDGLQJWKHNPORQJ FDOO\LQFUHDVLQJWKHQXPEHU DUDLOEULGJHRYHU+DQ5LYHU KHOLQH VUDLOFDSDFLW\,Q-XO\ VDVWKHWUDI¿FEHWZHHQ JOHJFRPSOHWHG¿UVWLQ RVL[WUDFNUDLOVVWDUWHGEXWLWV FRPSOHWHGLQ'HFHPEHU WRXSJUDGHWKHNPORQJ VHUYLFH%\WKH6XZRQ RSROLWDQWUDLQVWRUXQDOOWKHZD\ SROLWDQWUDI¿FWRDQGIURP6HRXO *\HRQJLQ/LQHLVWKHRQO\OLQHLQ FLW\RIWKH6HRXO*XUROHJMXPSHG

Six-track section of Gyeongbu Line Six-track section of Gyeongbu
7KH6HRXO*XUROHJRI*\HRQJEX/LQHZDVGHVLJQHGDVIRXUWUDFN FRQVWUXFWLRQWRXSJUDGHWKHNPORQJ6HRXO*XUROHJW FRPSOHWLRQZDVSXVKHGWRGXHWRWKHGLI¿FXOW\LQEXLOGLQJ DQGWKHODFNRI¿VFDOVXSSRUW$IWHUWKHXSJUDGHWKHUDLOFDSD followed by the opening of the entire track in 2005. Since the completion of the upgrade, local DQGH[SUHVVWUDLQVKDYHEHHQUXQQLQJRQWKHLUUHVSHFWLYHWUDFNV the country that has tracks dedicated to express trains. of both the intercity and metropolitan trains. With the continued rise of the demand for the continued rise of the demand for With of both the intercity and metropolitan trains. PHWURSROLWDQUDLOZD\VKRZHYHULWEHFDPHQHFHVVDU\WRH[SDQGW WZRIROGWRDGD\IURP0RUHWKDQWKUHHPLOOLRQSHRSOHK DQG%XFKHRQFLWLHVORFDWHGHDVWRI6HRXOSXVKLQJXSWKHPHWUR increasingly crowded with passengers, the peak While the trains running on Gyeongin Line got rail capacity. was limited by the insufficient number of train operations allowed for the line 7RHDVHWKHJULGORFNWKHJRYHUQPHQWVWDUWHGFRQVWUXFWLRQLQ *XUR,QFKHRQVHFWLRQWRIRXUWUDFNUDLOVZLWKWKH*XUR%XS\HRQ 6HRXODQG6XZRQZDVUDSLGO\JURZLQJ7KXVDSURMHFWLQYROYLQJ down to . ZRXOGQRWEHDEOHWRFRSHZLWKWKHWUDQVSRUWDWLRQGHPDQGLQWKH VHFWLRQWRDIRXUWUDFNUDLOZD\ZDVFRPPHQFHG7KHXSJUDGHZDV DERXWIRXU\HDUVDIWHUWKHFRPPHQFHPHQWRIWKHSURMHFWGUDPDWL RIWUDLQRSHUDWLRQVDQGWKXVLPSURYLQJWKHTXDOLW\RISDVVHQJHU &KHRQDQOHJZDVXSJUDGHGWRIRXUWUDFNUDLOVDOORZLQJWKHPHWU
Local and express tracks of Gyeongin Line

0DLQO\LQWHUFLW\WUDLQVUDQRQ-RRQJDQJ/LQHEXWDVHULHVRIKRXVLQJSURMHFWVEXLOWLQWKH QRUWKHDVWHUQSDUWRIWKHPHWURSROLWDQDUHDVLQFHWKHVZRUVHQHGWKHFRQJHVWLRQLQ*XULVLDQG 1DP\DQJMXVL7RHDVHWKHFRQJHVWLRQDSURMHFWWRXSJUDGH-RRQJDQJ/LQHWRHOHFWUL¿HGGRXEOH WUDFNUDLOVZDVFRPPHQFHG,Q'HFHPEHUWUDLQVVWDUWHGWRUXQRQWKH&KHRQJU\DQJUL 'HRNVROHJIROORZHGE\VXEVHTXHQWH[WHQVLRQWR

7KHJRYHUQPHQWUHYLHZHGWKHIHDVLELOLW\RIXSJUDGLQJ*\HRQJXL/LQHWRHOHFWUL¿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

*\HRQJFKXQ/LQHRSHQHGLQDVDVLQJOHWUDFNUDLOFRQQHFWLQJ6HRXODQG&KXQFKHRQWKH FHQWUDOFLW\RI*DQJZRQGR2ZLQJWRWKHFRQWLQXHGXUEDQH[SDQVLRQRI6HRXOSDUWRIWKHOLQH FURVVLQJWKHFLW\ZDVUHPRYHG:LWKDVHULHVRIKRXVLQJSURMHFWVEXLOWLQWKHQRUWKHDVWHUQSDUWRI WKHPHWURSROLWDQDUHDKRZHYHUWKHOLQHZDVXSJUDGHGWRGRXEOHWUDFNUDLOVLQ'HFHPEHU URXJKO\D\HDUDIWHUWKHVWDUWRIWKHFRQVWUXFWLRQLQSURYLGLQJPHWURSROLWDQUDLOVHUYLFHVLQ WKHDUHD7KH0DQJZRR0DVHRNOHJRIWKHOLQHLVDPHWURSROLWDQUDLODQGZDV¿QDQFHGE\WKH ORFDOJRYHUQPHQWZKHUHDVWKH0DVHRN&KXQFKHRQOHJLVDQDWLRQDOUDLOURDGDQGZDV¿QDQFHG

33 Chapter 2 34 GLQ)HEUXDU\DQG WUDFNPHWURSROLWDQUDLOZD\ ROORZHGE\WKHRSHQLQJRI W\LQWKHVRXWKZHVWHUQSDUW E\.RUHD:DWHU5HVRXUFHV FRQQHFWLRQZLWK6HRXOIURP O\FRQQHFWHGZLWK*\HRQJEX QG6DQERQZDVFRQ¿UPHGLQ \ VILUVWGRXEOHGHFNH[SUHVV PSDWLEOHZLWK6HRXO0HWUR/LQH VL , it was quite different therefrom. , it was quite different QHFWLRQZLWK6HRXOFRQVWUXFWLRQ  $QVDQVLDQGLWVVXUURXQGLQJDUHDV DWVWRSDWHYHU\VWDWLRQ7KH,7;

Double-deck express train running on Gyeongchun Line Gyeongchun train running on Double-deck express
right on a 1,500 V direct current $IWHUWKHSODQIRUODUJHVFDOHKRXVLQJSURMHFWVLQ3\HRQJFKRQD 7RSURPRWHWKHGHYHORSPHQWRI$QVDQDULVLQJQHZLQGXVWULDOFL 3) left on a 25,000 V alternate current; Seoul Metro Line 4: Cruising to the Gwacheon Line: Cruising to the 3.2 Construction of New Metropolitan Lines 3.2 Construction of New Metropolitan WUDLQVDUHUXQQLQJRQWKHOLQHDVZHOODVWKHORFDOWUDLQVWK HQWLUHO\ZLWKILVFDOVXSSRUW,7;&KHRQJFKXQWUDLQVWKHFRXQWU Cheongchun trains stop only at the key stations, and the fares are charged according to the the according to fares are charged key stations, and the trains stop only at the Cheongchun fare system. national railroad 4, but in terms of the train operation mode and electric current WKHFRQVWUXFWLRQRI*ZDFKHRQ/LQHDNPORQJGRXEOH FRQQHFWLQJ*HXPMHRQJDQG6DGDQJVWDUWHGWRLPSURYHWKHWUDQVLW WKHVHDUHDV7KH*HXPMHRQJ,QGHRNZRQOHJRSHQHG¿UVWLQI WKHHQWLUHOLQH*ZDFKHRQ/LQHZDVRULJLQDOO\GHVLJQHGWREHFR RIWKHPHWURSROLWDQDUHDDQGWRLPSURYHWKHFLW\ VWUDQVLWFRQ DQGKDVVLQFHEHHQH[WHQGHGWR2LGR6WDWLRQORFDWHGLQ6LKHXQJ RIWKHNPORQJ*HXPMHRQJ:RQJRNVHFWLRQRI$QVDQ/LQHVWDUWH ZDVFRPSOHWHGLQ2FWREHU7KHSURMHFWZDVHQWLUHO\¿QDQFHG The line with Gwacheon Line in 1993. Line at the time of its opening, but it was reconnected HIIHFWLYHO\VDWLV¿HGWKHUDSLGO\JURZLQJGHPDQGIRUWUDQVLWLQ &RUSRUDWLRQUHFHQWO\UHQDPHG³.:DWHU´$QVDQ/LQHZDVGLUHFW $VWKHRSHUDWRUVRIERWKOLQHVIDLOHGWRFRPHXSZLWKDFRPSURPLVHDQ;W\SHFURVVLQJWXQQHO ZDVEXLOWLQWKH1DPWDHU\HRQJ6HRQEDZLVHFWLRQZKHUHWKHWZROLQHVDUHOLQNHGDQGWUDLQVHWV capable of running on both alternate and direct currents are running along the two lines. The WUDLQVPRPHQWDULO\GLVFRQQHFWWKHSRZHUZKHQHYHUWKH\SDVVWKHUDLOOLQNKHUH

,OVDQ/LQHZDVEXLOWWRSURYLGHWUDQVLWVHUYLFHVWRWKHUHVLGHQWVRI,OVDQDQG*R\DQJE\ connecting Seoul and Ilsan New Town. The line was built between 1991 and 1996. As Ilsan 1HZ7RZQDQG*XSDEDO6WDWLRQWKHWHUPLQDORI0HWUR/LQHZHUHORFDWHGDWGLIIHUHQWODWLWXGHV ,OVDQ/LQHKDGWRGHWRXUDORQJWKH6HRVDPQHXQJDQG6HRRUHXQJDUHDVYLD0XDNMDHORZHULQJLWV WUDQVSRUWDWLRQHI¿FLHQF\DQGFRPSHWLWLYHHGJH,WVRYHUELOOLRQZRQFRQVWUXFWLRQFRVWZDV ¿QDQFHGE\.RUHD/DQG&RUSRUDWLRQ UHQDPHG³.RUHD/DQGDQG+RXVLQJ&RUSRUDWLRQ´ DQG UROOLQJVWRFNVZHUHSXUFKDVHGE\.25$,/WKHRSHUDWLQJERG\ZLWKDEXGJHWRIELOOLRQ ZRQ$V,OVDQ/LQHZDVGHVLJQHGDVDQH[WHQVLRQRI6HRXO0HWUR/LQHWUDLQVUXQRQD9 GLUHFWFXUUHQWZKLOHNHHSLQJWRWKHULJKWWKH¿UVWWLPHIRU.25$,/WUDLQV

KORAIL and Seoul Metro trains running on Ilsan Line

$IWHUWKHSODQIRUWKHGHYHORSPHQWRI%XQGDQJ1HZ7RZQZDVFRQ¿UPHG%XQGDQJ/LQH FRQQHFWLQJ%XQGDQJDQG:DQJVKLPQLZDVGHVLJQHGWRLPSURYHWKHFLW\ VWUDQVLWOLQNZLWK6HRXO 7KH¿UVWVWDJHVHFWLRQRI%XQGDQJ/LQHEHWZHHQ6XVHRDQG2UL NP ZDVEXLOWEHWZHHQ DQG7KHFRPPXWHUVKDGWRWUDQVIHUWR6HRXO0HWUR/LQHDW6XVHR6WDWLRQKRZHYHU to go to the city center. The line was extended to in 2003, making it much HDVLHUWRDFFHVVWKHFLW\FHQWHUE\WUDQVIHUULQJWR0HWUR/LQH$IXUWKHUH[WHQVLRQRIWKHOLQHWR :DQJVKLPQL6WDWLRQLVFXUUHQWO\XQGHUZD\7KHOLQHZDVDOVRH[WHQGHGWR*LKHXQJ

35 Chapter 2 36 DQGWKHOLQHWXUQVDORW VRIWKHH[LVWLQJ%XQGDQJ JDQG*DQJQDPGLVWULFWV RIWKHPHWURSROLWDQUDLOZD\ RGZKHUHSULYDWHLQYHVWRUV QFRQWURO 7RHQVXUHVDIHW\ URSROLWDQWUDQVLWD[HVZKHUH WKZDUGWR6XZRQ6WDWLRQLV VZLWKLQWKHNPVHFWLRQ QHGVSHHGWRNPK$VWKH ZDVTXLWHORZ6KLQ%XQGDQJ VWLQJRIVL[FDUVUXQQLQJRQWKH VXSSRUWZDVDOVRSDLGIRUE\WKH RIWKHFRQYHQWLRQDOPHWURSROLWDQ ERDUGWKHWUDLQ$SULYDWHO\IXQGHG

Unmanned train operation system of Shin Unmanned train operation system
0HDQZKLOHWKHLQWURGXFWLRQRIUDSLGUDLOZD\VDORQJWKHNH\PHW 6KLQ%XQGDQJ/LQHZDVFRQVWUXFWHGWRLPSURYHWKHVHUYLFHOHYHO EHWZHHQ*DQJQDPDQG-HRQJMD6WDWLRQSXVKLQJXSWKHOLQH VSODQ OLQHZDVILQDQFHGWKURXJKWKH%72 EXLOGWUDQVIHURSHUDWH PHWK VKRXOGHURYHURIWKHSURMHFWFRVWDQGDVPXFKRIWKH¿VFDO /LQH7KHSODQQHGVSHHGRI%XQGDQJ/LQHLVEDUHO\RYHUNPK ORZHULQJLWVFRPSHWLWLYHHGJHLQWHUPVRIFRQQHFWLQJWKH%XQGDQ 7KHUHIRUH6KLQ%XQGDQJ/LQHZDVGHVLJQHGWRKDYHRQO\VL[VWRS QHZWRZQGHYHORSHUWKH¿QDQFLDOEXUGHQRIWKHORFDOJRYHUQPHQW /LQHEXLOWEHWZHHQDQG2FWREHUKDVWUDLQVHWVFRQVL KRZHYHUDVDIHW\VWDIITXDOL¿HGWRGULYHWKHWUDLQLVDOZD\VD SURMHFWWRH[WHQGWKHOLQHQRUWKZDUGWR
Regulatory process with regard to the construction of Seoul Metro Line 1

Category Content Governing Body Date Decision on the facility Ministry of Construction March 1971 Urban planning Approval of the working plan " May 1971 Operation license Ministry of Transportation September1971 Private railroad Approval of construction " December 1971 Electric railroad Operation license Ministry of Commerce February 1972 Public water surface Approval of reclamation Ministry of Construction January 1971 Communication duct Construction agreement Ministry of Communication December 1971 In-car radio station Approval of installation Ministry of Construction November 1973

7KH0LQLVWU\RI7UDQVSRUWDWLRQHQDFWHGWKH5HJXODWLRQRQWKH&RQVWUXFWLRQRI 6HRXO0HWUR/LQHLQDVZHOODVWKH5XOHVRQWKH2SHUDWLRQRI6HRXO&LW\ 6XEZD\LQDFFRUGLQJWRWKH/DZRQ5DLOURDGV'XULQJWKHFRQVWUXFWLRQRI 6HRXO0HWUR/LQHSURMHFWQRWHFKQRORJLFDOVWDQGDUGZDVLQSODFHLQWKHFRXQWU\ ZLWKUHJDUGWRVXEZD\FRQVWUXFWLRQ$FFRUGLQJO\WKHSURMHFWIROORZHGWKHUDLOWUDFN GHVLJQVWDQGDUGVHQIRUFHGLQ(XURSHDQG-DSDQWKHQZLWKWKHFRXQWU\ VRZQVXEZD\ construction regulations enacted later, by modifying and complimenting them.

6HRXO&LW\DVWKHFRPSHWHQWDXWKRULW\UHVSRQVLEOHIRUWKHH[HFXWLRQRIWKHSURMHFW HVWDEOLVKHG6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVVWDIIHGZLWKRI¿FLDOVLQ ZHOOEHIRUHWKHJURXQGEUHDNLQJRI6HRXO0HWUR/LQHIROORZHGE\WKHHQDFWPHQW RIWKH2UGLQDQFHRQ6SHFLDO$FFRXQWLQJIRU6HRXO&LW\6XEZD\&RQVWUXFWLRQLQODWH SURYLGLQJDOHJLWLPDWHJURXQGIRU¿QDQFLQJWKHSURMHFW,Q-XQHWKHUROH of Subway Construction Headquarters was reinforced when it was made to assume the “operation system” under its capacity on top of the “construction system.” In -XQHQHDUWKHFRPSOHWLRQRIWKHFRQVWUXFWLRQWKH2UGLQDQFHRQWKH6HRXO&LW\ 6XEZD\2SHUDWLRQZDVHQDFWHGEDVHGRQWKH/DZRQ5HJLRQDO3XEOLF&RUSRUDWLRQV stipulating the details regarding the management and operation of the subway. Based RQWKHRUGLQDQFHWKH5XOHVRQ6SHFLDO$FFRXQWLQJIRU6HRXO&LW\6XEZD\2SHUDWLRQ ZDVHQDFWHGLQ$XJXVW6HRXO0HWUR/LQHKDVEHHQPDQDJHGE\6XEZD\ Sales Bureau since its inauguration.

39 Chapter 3 40 SHGZRXOG WHGLWVIRFXV I8QGHUJURXQG GDSSURYDOIRU RMHFWLVJUDQWHG WKHUHJXODWRU\ HODZFRQFHUQHG URXQG5DLOZD\V ,QDGGLWLRQWKH QGHGRYHUWRWKH QWSODQLQYROYLQJ KHEXLOGHUVRIDQ E\WKHFUHDWLRQRI HQWV.25$,/RU JDUGLQJWKHXUEDQ DVUXOHVRQLVVXLQJ WWKHFRQVWUXFWLRQRI DLQDSSURYDOIURPWKH QPHQWHQDFWHGWKH/DZ 7KHDIRUHPHQWLRQHGODZVWDWHGWKDWLIDQXQGHUJURXQGUDLOZD\SU $VLQGLFDWHGLQLWVQDPHWKH/DZWR3URPRWHWKH&RQVWUXFWLRQR To spur the building of underground railways and to thus ease the traffic the traffic and to thus ease railways of underground spur the building To 1.2 Urban Railway Governance in the 1980s in Governance Railway 1.2 Urban DQXQGHUJURXQGUDLOZD\E\DORFDOJRYHUQPHQWVKRXOGEHSUHFHGHG According to the law, a master plan on the construction and operation of the railway. railway is supposed to be planned the operation and construction of an underground LQDGYDQFHDQGDSSURYHGE\WKH0LQLVWU\RI7UDQVSRUWDWLRQ 0LQLVWU\RI&RQVWUXFWLRQZDVUHTXLUHGWRUHSRUWLWVGHFLVLRQUH GHYHORSPHQWSODQWRWKH0LQLVWU\RI7UDQVSRUWDWLRQ$VDUHVXOW was formerly under the construction of urban railways, which procedure regarding WKHFRQWURORIWKH0LQLVWU\RI&RQVWUXFWLRQZDVHIIHFWLYHO\KD 0LQLVWU\RI7UDQVSRUWDWLRQ DSSURYDOEDVHGRQWKH/DZWR3URPRWHWKH&RQVWUXFWLRQRI8QGHUJ WKHSURMHFWVKRXOGEHDVVXPHGWRKDYHEHHQDXWRPDWLFDOO\JUDQWH The law also listed Appropriation of Land. operation as well by the Law on the ZD\VWR¿QDQFHWKHFRQVWUXFWLRQRIXQGHUJURXQGUDLOZD\VDVZHOO bonds. It also stipulated that when needed, the railway and buying underground FHQWUDOJRYHUQPHQWFDQVXEVLGL]HWKHSURMHFWRUOHQGPRQH\WRW railway. underground the opening With railways. underground Railways focused on the construction of RI6HRXO0HWUR/LQHDQGKRZHYHUWKHJRYHUQPHQWVKLI railways by enacting in 1986 the Law on the to the operation of underground &RQVWUXFWLRQDQG2SHUDWLRQRI8QGHUJURXQG5DLOZD\VZKLFKLWKR HQKDQFHWKHRSHUDWLRQHI¿FLHQF\RIUDLOZD\V7KHODZVWDWHGWKD 0LQLVWHURI7UDQVSRUWDWLRQEHIRUHVHWWLQJXSDQXUEDQGHYHORSPH routes of underground and that the railway, an underground the construction of UDLOZD\VVKRXOGEHGHVLJQDWHGE\WKH0LQLVWU\RI7UDQVSRUWDWLRQ WR3URPRWHWKH&RQVWUXFWLRQRI8QGHUJURXQG5DLOZD\VLQ7K WKHXQGHUJURXQGUDLOZD\VEXLOWE\WKHFHQWUDODQGORFDOJRYHUQP RWKHUFRUSRUDWLRQV,WVWDWHGWKDWORFDOJRYHUQPHQWVVKRXOGREW FRQJHVWLRQLQWKHFLWLHVDQGWKHLUVXUURXQGLQJDUHDVWKHJRYHU :KHQDORFDOJRYHUQPHQWSODQVWRHVWDEOLVKDQXQGHUJURXQGUDLOZD\FRUSRUDWLRQ LWLVUHTXLUHGE\WKHDIRUHPHQWLRQHGODZWRGLVFXVVWKHSODQLQDGYDQFHZLWKWKH 0LQLVWU\RI7UDQVSRUWDWLRQ)XUWKHUDFFRUGLQJWRWKHODZWKHWUDQVIHUPHUJHU suspension, or closure of the operation of a corporation with a license to operate VKRXOGDOVREHDSSURYHGE\WKH0LQLVWU\RI7UDQVSRUWDWLRQ,WDOVRVWDWHVWKDWWKH 0LQLVWU\RI7UDQVSRUWDWLRQFDQRUGHUWKHRSHUDWRUVRIDQXQGHUJURXQGUDLOZD\WR PRGLI\WKHLUPDQDJHPHQWSODQIDUHDQGWUDLQRSHUDWLRQVFKHGXOHWRLPSURYHWKH XUEDQWUDI¿FÀRZ7KLVUXOHZDVLQWHQGHGWRHQVXUHWKHVWDEOHSURYLVLRQRIFRQYHQLHQW WUDQVLWVHUYLFHVWRWKHSXEOLFE\WLJKWHQLQJWKHVXSHUYLVLRQRIWKHRSHUDWRUVRI underground railways.

8QGHUJURXQGUDLOZD\ERQGVSUHYLRXVO\³XQGHUJURXQGUDLOZD\FRQVWUXFWLRQ bonds,” which were originally issued to finance the construction of underground UDLOZD\VFDQDOVREHLVVXHGWR¿QDQFHWKHRSHUDWLRQRIDQXQGHUJURXQGUDLOZD\

1.3 Urban Railway Governance in the 1990s

,QWKH0LQLVWU\RI7UDQVSRUWDWLRQDQQRXQFHGWKDWLWZRXOGEXLOGVXEZD\V LQWKHFRXQWU\ VVL[PDMRUFLWLHVWRVROYHWKHXUEDQWUDQVSRUWDWLRQSUREOHPVWKHUHLQ while recommending the construction of light rails to ease the congestion between WKHFHQWUDOFLW\DQGWKHVXUURXQGLQJFLWLHV,QVWHDGRIHQDFWLQJDVHSDUDWHODZFXVWRP PDGHIRUHYHU\QHZXUEDQUDLOZD\SURMHFWWKHVLQJOHFRQVROLGDWHGUHJXODWRU\ V\VWHPZRXOGKHQFHIRUWKRYHUVHHWKHFRXQWU\ VXUEDQUDLOZD\SURMHFWV7KH/DZ RQWKH&RQVWUXFWLRQDQG2SHUDWLRQRI8QGHUJURXQG5DLOZD\VZDVUHSODFHGE\WKH /DZRQ8UEDQ5DLOZD\VLQWRLQFOXGHOLJKWUDLOVDVZHOODVWKHFRQYHQWLRQDO underground railways.

7KH/DZRQ8UEDQ5DLOZD\VUHGHILQHG³XUEDQUDLOZD\´WRLQFOXGHXUEDQWUDQVLW with dedicated tracks such as , as well as railways including underground UDLOZD\VORFDWHGLQWKHYLFLQLW\RIWKHXUEDQWUDQVLWQHWZRUN7RSURPRWHWKH FRQVWUXFWLRQRIXUEDQUDLOZD\VDQGWRLPSURYHWKHLUPDQDJHPHQWHIILFLHQF\WKH EXLOGHUVRIXUEDQUDLOZD\VZHUHDOORZHGWRSXVKIRUWKHFRPPHUFLDOGHYHORSPHQW RID³UDLOZD\VWDWLRQVSKHUH´ZLWKLQDJLYHQUDGLXVVSUHDGLQJIURPWKHVWDWLRQ 7KHSURILWVIURPWKHGHYHORSPHQWZRXOGEHXVHGWRILQDQFHWKHFRQVWUXFWLRQDQG operation of another urban railway. If an urban railway builder intends to use the

41 Chapter 3 42 DVWKH FLW\KDGLWV UHTXLUHPHQWV XWWKHSURMHFW DWLYHEHRSWHG QWO\EXLOGDQG FRPSHQVDWHWKH LQLPXPUHYHQXH YHVWPHQWVLQWKH WKHLQWURGXFWLRQ SULYDWHO\IXQGHG QG8LMHRQJEX$V SULYDWHLQYHVWPHQW LYHQGHSHQGLQJRQ D\ZLWKQXPHURXV HVWUHDPOLQLQJWKH WRIXUWKHUVWLPXODWH UHVFLQGHGLQ QHZXUEDQUDLOZD\ RWKH05*VFKHPH PIRUWKHSRVVLELOLW\ PHWURSROLWDQVXEZD\ VEHORZRIWKH XGLQJ%XVDQ*LPKDH VLQJOHXQL¿HGODZWKH URUJRYHUQRUZKRZLOO 7KH5XOHVRQWKH&RQVWUXFWLRQRI8UEDQ5DLOZD\VZDVHVWDEOLVKHG 7KHJRYHUQPHQWDGYLVHGWKDWWKHWKLUGVHFWRUGHYHORSPHQWDOWHUQ QHWZRUNZKHUHDORFDOJRYHUQPHQWDQGSULYDWHLQYHVWRUVFDQMRL LQSXEOLFSURMHFWV%DFNHGE\WKLVSROLF\DIHZSURMHFWVLQFO IRUWROLJKWHQWKH¿VFDOEXUGHQFDUULHGRYHUIURPEXLOGLQJWKH RSHUDWHDOLJKWUDLOZD\,QWKH/DZWR3URPRWH3ULYDWH,Q 6RFLDO2YHUKHDG&DSLWDOZDVHQDFWHGWRV\VWHPDWLFDOO\SXVKIRU /LJKW5DLOKDGEHHQGHVLJQDWHGDVSULYDWHO\IXQGHGSURMHFWVE The Asian financial crisis. stumbling upon the from low interest before suffered JRYHUQPHQWKRZHYHUNHSWWHPSHULQJZLWKWKHVXSSRUWLQJSROLF\ SULYDWHLQYHVWPHQW7KH\HDUVDZWKHLQWURGXFWLRQRIWKHP JXDUDQWHHVFKHPHLQZKLFKWKHORFDOJRYHUQPHQWLVUHTXLUHGWR SULYDWHLQYHVWRUVIRUWKHGLIIHUHQFHLIWKHDFWXDOUHYHQXHIDOO RIWKHVFKHPHOLJKWUDLOVKDYHEHHQEXLOWLQ*LPKDH

Busan-Gimhae Light Rail Light Rail

Examples of privately funded light rail

,QWKHJRYHUQPHQWHQDFWHGWKH6SHFLDO/DZRQ0HWURSROLWDQ7UDQVLW 0DQDJHPHQWWRHIIHFWLYHO\WDFNOHZLWKDZLGHUSHUVSHFWLYHWKHPRXQWLQJWUDIILF problems in the metropolitan area, which had been caused by the new satellite FLWLHVVSURXWLQJDURXQGWKHJUHDWHU6HRXODUHD$FFRUGLQJWRWKHODZWKHGHYHORSHUV RIODUJHVFDOHKRXVLQJSURMHFWVZHUHREOLJHGWRVKRXOGHUWKHFRVWRIPHWURSROLWDQ WUDQVLWUHYDPSZKLOHWKHWD[OHYLHGLQWKLVZD\ZDVWREHLQYHVWHGDJDLQLQYDULRXV PHWURSROLWDQWUDQVLWSURMHFWVLQFOXGLQJPHWURSROLWDQUDLOZD\V7KHFHQWUDO JRYHUQPHQWXVXDOO\DVVXPHGWKHPDQDJHPHQWRIPHWURSROLWDQUDLOZD\SURMHFWVDQG WKHVKDUHRIWKHJRYHUQPHQW V¿VFDOVXSSRUWIRUWKRVHSURMHFWVZDVKLJKHUWKDQWKDW IRUXUEDQUDLOZD\SURMHFWV7KHPHWURSROLWDQUDLOZD\VEXLOWE\WKHFHQWUDOJRYHUQPHQW DUHFXUUHQWO\EHLQJPDQDJHGE\.25$,/

1.4 Governance in the 2000s

,QWKHJRYHUQPHQWLQWURGXFHGWKH“preliminary feasibility study” rule WDUJHWHGDWODUJHVFDOHSXEOLFLQYHVWPHQWSURMHFWVWRDVVHVVWKHLUSROLF\LQLWLDWLYHDQG HFRQRPLFIHDVLELOLW\DVZHOODVWRVXJJHVWHIIHFWLYHDQGUHDOLVWLFZD\VRIH[HFXWLQJ WKHSURMHFW7KHUXOHLVDSSOLHGWRSURMHFWVWKDWFRVWRYHUELOOLRQZRQLQWRWDO LQYHVWPHQWDQGWKDWUHFHLYHRYHUELOOLRQZRQLQ¿VFDOVXSSRUW

5) The main framework of the rule was established in 2006 with the enactment of the National Finance Law

43 Chapter 3 44 EXLOW .RUHD5DLO OHGE\SULYDWH KDH/LJKW5DLO RQVWUXFWLRQDQG 7RDGGUHVVWKLV ROYHLWVHOILQWKH G7UDQVSRUWDQG XVKHGDKHDGZLWK $FFRUGLQJO\WKH ORFDOJRYHUQPHQWV URMHFWZDVIXQGHG QIRUWKHSURSRVHG EXLOWDQGRSHUDWHG LRQRIWKHSURMHFWV QELOOLRQZRQLQ DWHJ\DQG)LQDQFH HORFDOJRYHUQPHQW HFWVWKDWSDVVHGWKH IHDVLEOHWKHKHDGRI HGKRZHYHUZLWKRXW \LQ6HRXO UHTXHVWIRUWKH¿QH PLQDU\IHDVLELOLW\WHVW G RQ DWLRQRIXUEDQUDLOZD\V KHGHVLJQRIWKHOLQHWKH 0LQLVWU\RI/DQG7UDQVSRUWDQG0DULWLPH$IIDLUVDSSURYHVWKHF 8UEDQUDLOZD\SURMHFWVZHUHXVXDOO\FRQGXFWHGE\WKHRI¿FHVRI 7KHPHWURSROLWDQUDLOZD\VDUHPRVWO\QDWLRQDOUDLOZD\VEXLOWE\ &RQVHTXHQWO\DQXUEDQUDLOSURMHFWWKDWZRXOGUHFHLYHPRUHWKD 7KHSUHOLPLQDU\IHDVLELOLW\VWXG\ZDVHDUOLHUSHUIRUPHGE\WK RSHUDWLRQRIWKHPDVWHUSODQRIDQXUEDQUDLOZD\IRUWKRVHSURM IHDVLELOLW\WHVW'XULQJWKHDSSURYDOSURFHVVWKHPLQLVWU\FDQ WXQLQJRIWKHSURMHFWDFURVVDEURDGUDQJHRILVVXHVVXFKDVW DVVXPHGWKHUHVSRQVLELOLW\LQIRUDPRUHREMHFWLYHHYDOXDW DQGVRWKDWHI¿FLHQW¿VFDOVXSSRUWFRXOGEHREWDLQHGIURP6HRXO GHFLVLRQUHJDUGLQJZKHWKHUDQXUEDQUDLOZD\SURMHFWVKRXOGEHS UDLOZD\V\VWHPDQGWKHFRQVWUXFWLRQFRVW$VDSSURYDOLVJUDQW HQRXJKSUHOLPLQDU\FRQVXOWDWLRQWKHFHQWUDOJRYHUQPHQWFDQLQY LVVXHWKHFHQWUDOJRYHUQPHQWSDUWLFXODUO\WKH0LQLVWU\RI6WU ZRXOGDOVREHPDGHE\WKH0LQLVWU\RI6WUDWHJ\DQG)LQDQFH process only to a certain extent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¿VFDOVXSSRUWIURPWKHFHQWUDOJRYHUQPHQWVKRXOGSDVVWKHSUHOL Route Design

Setting up of Master Plan Article 3‐2, The Law on Urban Railway

Article 3‐2, Law on Environmental‐Effects Article 4, Law on the Master Plan Design Urban Railways Evaluation Evaluation of (Ministry of Land, Transport the Impact on the and Maritime Affairs) Traffic Impact Environment, Traffic, and Disasters Article 4, Law on Assessment Operation License Urban Railways Article 8, Law to Enhance the Energy Use Plan Efficiency of Energy Use

Basic Design

Execution Drawing

Urban Management Article 30, Law on the Planning and Plan Confirmation Management of Land

Topographical Floor Article 32, Law on the Planning and Plan Approval Management of Land

Project Master Plan Approval Article 4‐3, Law on (Project Authorization) Urban Railways

Construction Commencement and Compensation

Inauguration

Railway Operation Commencement

Flow of an urban railway project

2. Urban Railway Development Strategy of South Korea

2.1 Service Route Design Strategy

In the late 1960s, when Seoul's subway was still in the planning stage, the city's FRPPXWLQJUDGLXVZDVDOUHDG\JURZLQJZLGHUZLWKWKHGHYHORSPHQWRIWKHFLW\ V RXWVNLUWVZKLOHWKHGHPDQGIRUXUEDQWUDQVLWMXPSHGVSXUUHGE\WKHSRSXODWLRQ growth. The growth of automobiles also outpaced the growth of the population in WKHV7KHURDGVEDFNWKHQKRZHYHUVSUHDGRXWIURPWKHFLW\ VKXEOLNHWKH VSRNHVRIDZKHHOZRUVHQLQJWKHWUDI¿FLQWKHFLW\FHQWHUHYHQPRUH7RHDVHWKH FRQJHVWLRQRIVRPHFURZGHGURDGZD\VLQWKHFLW\FHQWHUWKHVXEZD\GHYHORSPHQWLQ WKHVIRFXVHGRQEXLOGLQJOLQHVWKDWUHDFKHGWKHXUEDQRXWVNLUWVDIWHUSHQHWUDWLQJ WKHFLW\FHQWHU$FFRUGLQJO\6HRXO0HWUR/LQHZDVEXLOWDORQJWKH6HRXO6WDWLRQ

45 Chapter 3 46 XOWLSOHVXEFLW\ IXQFWLRQVWKH QWD[LV'DHMHRQ WLHVZDVVKLIWLQJ J-DPVKLOGLVWULFW FLW\FHQWHUVDORQJ GHVLJQVRI%XVDQ HVSHQHWUDWHGWKHLU PPXWLQJUDGLXVRI FRQVLVWHGRIWKUHH QGZHUHGHVLJQHG HPHZDV0HWUR/LQH VLQ*\H\DQJJXDQG ZDVEXLOWDORQJWKH DIWHUWKHLUUHYDPSDQG

Daegu Metro routes
Daegu Metro 7KHXUEDQGHYHORSPHQWVWUDWHJ\RIWKHFRXQWU\ VPHWURSROLWDQFL IURPVLQJOHWRPXOWLFRUHGHYHORSPHQWZKLFKDLPVWRGHYHORSP In the process, urban railways were built in a way that centers around the city. HIIHFWLYHO\FRQQHFWHGVXFKVXEFLW\FHQWHUV6HRXOIRULQVWDQFH

In the metropolitan areas, the expansion of the central city often triggered an H[SORVLRQRIKRXVLQJSURMHFWVLQWKHVXUURXQGLQJFLWLHV7RKDQGOHWKHVXEVHTXHQW LQFUHDVHRIWKHPHWURSROLWDQWUDI¿FEHWZHHQWKHFHQWUDODQGVXUURXQGLQJFLWLHVWKH H[LVWLQJPHWUROLQHVZHUHH[WHQGHG,QWKHJUHDWHU6HRXODUHD6HRXO0HWUR/LQH DQGZHUHH[WHQGHGWR*ZDQJP\HRQJVLDQG6HRQJQDPVLUHVSHFWLYHO\6HRXO 0HWUR/LQHLVFXUUHQWO\EHLQJH[WHQGHGDJDLQWR%XFKHRQDQG,QFKHRQ0HDQZKLOH 6HRXO0HWUR/LQHDQGZHUHFRQQHFWHGWR,OVDQDQG*ZDFKHRQ/LQHUHVSHFWLYHO\ ERWKPHWURSROLWDQOLQHVERRVWLQJWKHXUEDQGHYHORSPHQWRI,OVDQDQG3\HRQJFKRQ 1HZ7RZQ$PRQJWKHUDLOZD\VLQWKHORFDOPHWURSROLWDQFLWLHV%XVDQ0HWUR/LQH ZDVH[WHQGHGWR

Seoul Metro lines and their connections with the surrounding cities

The urban railway network was continuously expanded in the city for a more

 Chapter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¿FOLJKWUDLOVDUHSODQQHGWREHEXLO 2.2 Designing Systems Optimized for the Demand Optimized for 2.2 Designing Systems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¿UVWSKDVHOLQHV,QWKHFDVHRIWKHVHFRQGSKDVHO UHFRPPHQGHGWKDWOLQHVJRRGIRUUXQQLQJPLGVL]HGVL[WRHLJK PLOOLRQSHRSOHKDGHLJKWFDUWUDLQVHWVUXQQLQJRQ0HWUR/ IRXUFDUWUDLQVHWVUXQQLQJRQWKHLUUHVSHFWLYHOLQHV

If all the train sets currently running on the country's urban rail tracks will be broken down according to the number of cars per train set, it will be found that the capacity of each train set has continuously gone down. This may not necessarily imply that the system and capacity of the current railways is most appropriate for the FLW\ VPDLQWUDQVLWD[LVHYHQWKRXJKWKHGDWDUHÀHFWWKHFLW\ VVL]HDQGWUDI¿FGHPDQG

Urban railway train set capacity by period

Start of Train Car No. of Cars City Line(s) Remarks Operation Size per Train 1970s Seoul Line 1 Large 10 Seoul Line 2-4 Large 10 1980s Busan Line 1 Mid-sized 8 Line 5-7 Large 8 Seoul Line 8 Large 6 Connects -si 1990s Busna Line 2 Mid-sized 6 Daegu Line 1 Mid-sized 6 Seoul Line 9 Mid-sized 4 Busan Line 3 Mid-sized 4 Daegu Line 2 Mid-sized 6 2000s Incheon Line 1 Mid-sized 8 Gwangju Line 1 Mid-sized 4 Daejwon Line 1 Mid-sized 4 Line 4 Light rail 6 2010s Busan Busan-Gimhae Light rail 2 Connects Gimhae-si

49

Urban railway train set capacity by period Chapter 3 50 &RRSHUDWLRQ /LQHZHUH HWKDQRI FWLRQRI6HRXO %RQGVLQ UDUHO\UHOLHGRQ DQUDLOZD\ERQGV QSDLGLQZLWKLQ FHWKHSURMHFWE\ IDUH[FHHGHGZKDW RXQWU\ZDVVWLOOD HDGLO\ULVHQDVWKH SRVVLEOHIURPWKH RIERQGVWKH/DZ PLOOLRQLQFDVK VHHVXUEDQUDLOZD\ VGXULQJZKLFK IIHUHGE\-DSDQZDV WKHERQGVZDVDERXW HJRYHUQPHQWVLJQHG DFWR¿VFDOVXSSRUWE\ SURMHFW XQWU\ZDVSUHRFFXSLHG FWFRVWZHUHORZHUWKDQ HDUVDIWHUWKHLVVXHZLWK VKDKHDGZLWKWKHSURMHFW 7KHILUVWSKDVH6HRXO0HWUROLQHVLQWKHVDQG%XVDQ0HWUR 6HRXO&LW\HQDFWHGWKH2UGLQDQFHRQWKH)LUVW6HRXO&LW\6XEZD\ 7KHEXGJHWUHTXLUHGIRUWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQH 2.3.2 Issue of the urban railway bonds 2.3 Financing the Projects the Projects 2.3 Financing loans 2.3.1 Foreign IRUHLJQORDQV(YHQWKRXJKLWLVWKHORFDOJRYHUQPHQWWKDWRYHU SURMHFWVLWV¿VFDOFDSDELOLW\ZDVFOHDUO\OLPLWHGIRULWWRSX RQLWVRZQWHUPVGXHWRWKHSURMHFW VPDVVLYHEXGJHW$VWKHF GHYHORSLQJQDWLRQEDFNWKHQWKHJRYHUQPHQW VGHFLVLRQWRILQDQ VLJQLQJDORDQDJUHHPHQWZDVDELJERRVWIRUWKHXUEDQUDLOZD\ ILVFDOVXSSRUWIURPWKHFHQWUDOJRYHUQPHQWKDGEHHQVWLSXODWHG ¿QDQFHGZLWKIRUHLJQORDQVEXWWKHLUVKDUHVLQWKHWRWDOSURMH WKDWRI6HRXO0HWUR/LQH7KHXUEDQUDLOZD\SURMHFWVLQWKH ZKHQDSHUVRQ issue of urban railway bonds was stipulated in the Law to Promote the Construction issue of urban railway bonds was stipulated RI8UEDQ5DLOZD\VDQGWKH/DZRQ8UEDQ5DLOZD\V,QWKHFRQVWUX RQ8UEDQ5DLOZD\VVWLSXODWHVWKHFRPSXOVRU\SXUFKDVHRIWKHXUE WR¿QDQFHWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQH7KHVKDUHRI RIWKHWRWDOSURMHFWFRVWEXWLWZDVUHSDLGLQWZR\ WKHJRYHUQPHQW7KHVKDUHRIWKH¿QDQFLQJE\ERQGVKDVVLQFHVW 0HWUR/LQH'DHJX0HWUR/LQHDQG*ZDQJMX0HWUR/LQHPRU WKHSURMHFWFRVWZDVILQDQFHGE\ERQGV)RUWKHIODZOHVVLVVXH DQRIILFLDOORDQDJUHHPHQWZLWK-DSDQ V2(&) 2YHUVHDV(FRQRPLF ¿VFDOVXSSRUWIURPWKHJRYHUQPHQWHIIHFWLYHO\PDNLQJLWDGHI FHQWUDOJRYHUQPHQWIHOOVKRUWRIWKHQHFHVVDU\DPRXQWDVWKHFR ZLWKLQYHVWLQJLQLWVHFRQRPLFGHYHORSPHQW)RUWKLVUHDVRQWK )XQG LQWKH.RUHD-DSDQ0LQLVWHULDO0HHWLQJ7KHWRWDOORDQVR NLQGUROOLQJVWRFNVDQGRWKHUHTXLSPHQWDQGWKHUHPDLQLQJ86' 6HRXO&LW\FRXOGOLQHXSIURPLWVRZQFRIIHUV7KH¿VFDOOLQHXS 86'PLOOLRQDERXWRIWKHWRWDOEXGJHWZLWK86'PLOOLR  LVJUDQWHGDOLFHQVHSHUPLVVLRQRUDSSURYDOE\WKHFHQWUDORUORFDOJRYHUQPHQW  DSSOLHVIRUUHJLVWUDWLRQRIUHDOHVWDWHRURWKHUDVVHWVZLWKWKHFHQWUDORUORFDO JRYHUQPHQW  VLJQVDVXEFRQWUDFWDJUHHPHQWRQFRQVWUXFWLRQZLWKWKHFHQWUDORUORFDO JRYHUQPHQWRU  VLJQVDVXEFRQWUDFWDJUHHPHQWRQFRQVWUXFWLRQVHUYLFHVRUSURFXUHPHQWZLWK regard to the construction and operation of an urban railway.

)LVFDOVXSSRUWIURPWKHFHQWUDOJRYHUQPHQW

%HJLQQLQJLQWKHVWKHJRYHUQPHQWVXEVLGL]HGRUOHQWSDUWRIWKHSURMHFW cost when it decided that fiscal support is necessary for the construction of an XUEDQUDLOZD\:LWKWKHHQDFWPHQWRIWKH/DZRQ8UEDQ5DLOZD\VWKHVKDUHRI ¿VFDOVXSSRUWURVHIURP VXEVLGLHV¿VFDOORDQV LQWKHHDUO\V to 30% in 1996. It rose again to 50% in 1998 and to 60% in 2005. For the fiscal VXSSRUWJUDQWHGWRWKHXUEDQUDLOZD\SURMHFWVFRQGXFWHGEHWZHHQDQGWKH JRYHUQPHQWSDLGWKHGLIIHUHQFHEHWZHHQRIWKHSURMHFWEXGJHWDQGWKHDFWXDO DPRXQWRI¿VFDOVXSSRUWJLYHQLQWKRVH\HDUVVRWKDWWKHEHQH¿FLDULHVFDQXVHWKH amount to pay back the principal and interest of their debts.

7DEOH!6KDUHRIWKHVWDWHÀVFDOVXSSRUWLQWKHXUEDQUDLOSURMHFWVE\SHULRG

Region 1980s Early 1990s Mid-1990s Late 1990s 2000s Seoul About 3% 15% 30% 40% 40% Other local cities About 15% 15% 30% 50% 60%

,QWKHJRYHUQPHQWHQDFWHGWKH/DZRQ6SHFLDO$FFRXQWLQJIRU7UDQVSRUWDWLRQ )DFLOLWLHVDQGWKH/DZRQWKH7UDQVSRUWDWLRQ7D[WRVHFXUHDEXGJHWIRUVWDEOH¿VFDO support. The tax incomes that were transferred to the special accounting of the transportation facilities include the entire tax collected based on the Law on the Transportation Tax and the special consumption tax on the passenger cars imposed DFFRUGLQJWRWKH/DZRQWKH6SHFLDO&RQVXPSWLRQ7D[$QREMHFWWD[FUHDWHGWR VHFXUHDEXGJHWIRUWKHURDGZD\VXUEDQUDLOVDQGRWKHUVRFLDORYHUKHDGFDSLWDOWKH WUDQVSRUWDWLRQWD[LVLPSRVHGRQJDVROLQHGLHVHORLODQGRWKHUVLPLODUDOWHUQDWLYH fuels, which are the targets of the special consumption tax.

51 Chapter 3 52 FWVDGMXGJHG RIWKHSURMHFW GHYHORSPHQW QFRVWLVSDLG DVHPHWUROLQHV RIILYHKRXVLQJ O\GHVLJQHGDVD LOLW\WRUHSD\LWV KHDY\DQGOLJKW RMHFWVZRXOGMDFN DUHDVDQG  WKH UHVWDVZHOODVWKH QWKHULVHRIWUDI¿F ZDVQRWWKHUHLQWKH UXFWLRQFRVWLQHDFK RUUHGXFHLWV¿VFDO YLWDEOHEHFDXVHWKH DVPRVWRIWKHQHZ QRWSDLG,IDORFDO &LW\DQGWRWKH ORFDOJRYHUQPHQW KHFHQWUDOJRYHUQPHQW WKHFRQVWUXFWLRQRIWKH QVZDVMXVWL¿HGIRUWKH ,Q3UHVLGHQW5RK7DH:RRRUGHUHGWKDWZD\VRIUHVWLWXWLQJ 7KHJRYHUQPHQWFXUUHQWO\SURYLGHVILVFDOVXSSRUWRQO\IRUSURMH 0HDQZKLOHWKHJRYHUQPHQWSURYLGHVILVFDOVXSSRUWRIXSWR $FFRUGLQJO\6HRXO&LW\LQWKHPLGVWRISODQQLQJWKHVHFRQGSK 5HVWLWXWLRQRIGHYHORSPHQWJDLQV EXGJHWZLWKUHJDUGWRPHWURSROLWDQUDLOZD\SURMHFWVIRUZKLFKW construction of urban railways and public gains be sought by closely associating the GHYHORSPHQW$KRXVLQJRUDQXUEDQGHYHORSPHQWSURMHFWLVXVXDO KLJKO\SDFNHGGHYHORSPHQWWRPD[LPL]HWKHODQGXVHUHVXOWLQJL ORFDOJRYHUQPHQWV,QSULQFLSOHKRZHYHUWKHRSHUDWLRQFRVWLV XUEDQUDLOZD\LWLVVWLSXODWHGWKDWWKHJRYHUQPHQWFDQVXVSHQG DVVXPHVUHVSRQVLELOLW\ZKLOHWKHUHPDLQLQJLVSDLGE\WKH ,QWKHPHWURSROLWDQFLWLHVWKHFRQVWUXFWLRQRIDVXEZD\LVLQH economically feasible and whose basic plans are confirmed according to the Law to the Law confirmed according basic plans are feasible and whose economically RQ8UEDQ5DLOZD\V$FFRUGLQJWRWKHJXLGHOLQHVWKHFRQVWUXFWLR LQWKHVDPHSURSRUWLRQWRWKHWRWDOEXGJHWLQWKHFDVHVRIERWK UDLOZD\VZKLOHXSWRRIWKHSURMHFWFRVWLVSDLGWR6HRXO JRYHUQPHQWFDQQRWDIIRUGWRUHSD\WKHGHEWWKDWLWLQFXUUHGLQ VXSSRUWWRDQHZRUSHQGLQJSURMHFW$ORFDOJRYHUQPHQW VFDSDE GHEWLVGHFLGHGE\UHYLHZLQJLILWLVSD\LQJEDFNDLQWH cost from its own coffers. operating loss and construction rising demand for transportation. Imposing roads are not good enough to meet the DSDUWLDO¿QDQFLDOEXUGHQIRUVXEZD\FRQVWUXFWLRQRQKRXVLQJSU XSWKHSULFHVRIORWV6WLOOWKHUHVWLWXWLRQRIGHYHORSPHQWJDL IROORZLQJUHDVRQV  WKHGHYHORSPHQWFRVWZDVUHODWLYHO\ORZ KRXVLQJSURMHFWVZHUHWDNLQJSODFHLQWKHXQGHYHORSHGJUHHQEHOW GHYHORSPHQWFUHDWHGDQHZGHPDQGIRUPDVVWUDQVLWVHUYLFHWKDW ¿UVWSODFH GHFLGHGWRDGGDELOOLRQZRQDGGLWLRQDOFRVWWRWKHEXGJHW GHYHORSPHQWSURMHFWVLQWKHFLW\7KHVKDUHRIWKHVXEZD\FRQVW KRXVLQJSURMHFWZDVRQDYHUDJH $VLPLODUWHFKQLTXHZDVDSSOLHGWRWKHPHWURSROLWDQUDLOZD\SURMHFWLQWKH greater Seoul area. The building of new metropolitan railways was instrumental in connecting Seoul and the new satellite cities, such as , Sanbon, Ilsan, and Bundang, which were built in the 1980s. Consequently, the national enterprises UHVSRQVLEOHIRUWKHQHZWRZQGHYHORSPHQWVKRXOGHUHGPXFKRIWKHFRQVWUXFWLRQFRVW

,QWKHJRYHUQPHQWHQDFWHGWKH6SHFLDO/DZRQ0HWURSROLWDQ7UDQVLW 0DQDJHPHQWWRHIIHFWLYHO\WDFNOHZLWKDZLGHUSHUVSHFWLYHWKHPRXQWLQJWUDIILF problems in the metropolitan area, which had been caused by the new satellite cities VSURXWLQJDURXQGWKHJUHDWHU6HRXODUHD$FFRUGLQJWRWKHODZWKHGHYHORSHUVRI ODUJHVFDOHKRXVLQJSURMHFWVZHUHREOLJHGWRVKRXOGHUWKHFRVWRIPHWURSROLWDQWUDQVLW UHYDPSZKLOHWKHWD[OHYLHGWKLVZD\ZDVLQYHVWHGDJDLQLQYDULRXVPHWURSROLWDQ WUDQVLWSURMHFWVLQFOXGLQJPHWURSROLWDQUDLOZD\

7KHFRQVWUXFWLRQRI*\HRQJFKXQDQG-RRQJDQJ/LQHZDVDOVRILQDQFHGE\WKH EXUGHQFKDUJHIRUPHWURSROLWDQWUDQVLWZKLFKZDVOHYLHGGXULQJWKHFRQVWUXFWLRQRI KRXVLQJSURMHFWVDORQJWKHOLQH7KHVKDUHRIWKHEXUGHQFKDUJHLQWKHFRQVWUXFWLRQRI 1HZ%XQGDQJ/LQHZKLFKZDVOHYLHGGXULQJWKHFRQVWUXFWLRQRI3DQJ\R1HZ7RZQ ZDVDOVRVLJQL¿FDQW

)LJXUH!7KHFRQVWUXFWLRQRI1HZ%XQGDQJ/LQHZDVÀQDQFHGE\3DQJ\R1HZ7RZQ'HYHORSPHQW

,QYROYHPHQWRISULYDWHFDSLWDO

7KHJRYHUQPHQWDGYLVHGRSWLQJIRUWKHWKLUGVHFWRUGHYHORSPHQWDOWHUQDWLYH

53 Chapter 3 54 VRPHORFDO WHFKQRORJLHV QWO\EXLOGDQG 72RSWLRQWKH KHILUVWWLPHLQ WKHJRYHUQPHQW DUHGWKHEXUGHQ %DFNHGE\WKLV VW6RXWK.RUHDQ LDQHQGHDYRU,Q WU\RI&RPPHUFH LQWHQGHGWRWDNH YHUQPHQWDJHQF\ URSROLWDQVXEZD\ DQFHPHQWRIORFDO HVE\HVWDEOLVKLQJ \SULYDWHLQYHVWRUV LYDWHLQYHVWPHQWLQ *LPKDH

:LWKWKHJURZLQJGHPDQGIRUWKHOLJKWUDLOVLQWKHVWKHJRYHUQPHQWSXVKHG DKHDGZLWKWKHUHVHDUFKDQGGHYHORSPHQWRIDYDULHW\RIOLJKWUDLOWHFKQRORJLHVVXFK DVWKHUXEEHUZKHHOHG$*7XUEDQPDJOHYDQGZLUHOHVV FDWHQDU\IUHH WUDPKRSLQJ that the light rail trains could be produced locally with the help of these homegrown WHFKQRORJLHV0HDQZKLOHWKHFRQVWUXFWLRQRIDWHVWUDLORUWKHSXUFKDVHRIWKHORFDOO\ produced trains was recommended to help commercialize those assembled trains. For instance, it was stipulated that the light rail trains assembled in the country VKRXOGEHFRQVLGHUHGDOWHUQDWLYHVZKHQVHWWLQJXSDPDVWHUSODQIRUWKHXUEDQUDLOV

Urban Rubber-wheeled AGT

Light rail train systems developed in South Korea

2.5 Fare Policy

The fare system of urban railways consists of the distance scale rates system, in ZKLFKIDUHVDUHFKDUJHGDFFRUGLQJWRWKHWULSPLOHVWKHXQL¿HGUDWHV\VWHPLQZKLFK a single fare is charged across the board; and the zoning system, in which all the OLQHVDUHGLYLGHGLQWRDFHUWDLQQXPEHURI]RQHV0RUHRYHUWKHIDUHVDUHFKDUJHG DFFRUGLQJWRWKHQXPEHURI]RQHVDSDVVHQJHUZRXOGWUDYHODFURVV

55 Chapter 3 56 HVKDGEHHQ HGWKHUHDIWHU LQHDQGWKH WRNPDQGDQ ZLWKLQWKHEDVH RSHQLQJRIHDFK IVXEZD\VWDWLRQV JDWUDQVSRUWDWLRQ HRUWKHUHDUHQR VWHQWO\WRZRQ KH]RQLQJV\VWHP HWKHPHWURSROLWDQ WKHEDVHUDWH RWKHPHWURSROLWDQ SJRHVEH\RQGWKH WZDVEDUHO\RYHU DSSO\LQJWKH]RQLQJ OIDUHIRUHYHU\NP DVHGLVWDQFHRINP 6LQFHWKHRSHQLQJRI6HRXO0HWUR/LQHLQWKHVXEZD\IDU :LWKWKHFRPSOHWLRQRIWKH¿UVWSKDVHPHWUROLQHVWKHQXPEHUR was introduced in fare system for the urban mass transit In 2004, the consolidated ,QWKHEDVLFIDUHRI6HRXO0HWUR/LQHZDVZRQIRUXS line with the reformation of the Seoul bus system, where the passengers can freely line with the reformation of the Seoul bus As without paying an additional fare. transfer between the subways and the buses RIWKHEDVHUDWHRI6HRXO0HWURLVZRQZKHQSDLGXVLQ charged according to the distance scale rates system until the introduction of the the the introduction of rates system until to the distance scale according charged DXWRPDWLFIDUHFROOHFWLRQ $)& V\VWHPLQ7KLVZDVEHFDXV UDLOVDOVRVKDUHGWKHWUDFNRI6HRXO0HWUR/LQHHYHQWKRXJKL km long. MXPSHGFRPSOLFDWLQJWKHIDUHV\VWHP7RVLPSOLI\WKHPDWWHUW ZDVLQWURGXFHGLQ6HRXOZKHUHDVWKHEDVHUDWHSOXVDQDGGLWLRQD stumbled An unexpected problem was soon once outside the city limits. was charged XSRQKRZHYHUWKHIUHTXHQWFKDQJHVLQWKHIDUHV\VWHPZLWKWKH system. mounting complaints about the zoning new line as well as the FDUGZLWKLQWKHEDVHGLVWDQFHRIDNPORQJWULS,IWKHWUL EDVHGLVWDQFHRINPZRQLVFKDUJHGIRUHYHU\NPFRYHU between the buses and the subways up to The passengers are allowed to transfer ¿YHWLPHVIRUIUHH0HDQZKLOHRWKHUUHJLRQDOXUEDQUDLOVDUH RUVLQJOHIDUHV\VWHPDVWKHLUPHWUROLQHVDUHUHODWLYHO\VLPSO metropolitan rails. DGGLWLRQDOZRQSHUNPLVFKDUJHGLIWKHWULSFRQWLQXHVRYHUW for the passengers who purchased charged lines. Lower than the published fares were DFRPPXWDWLRQWLFNHWRUZKRZHUHWUDYHOLQJDFURVV6HRXO0HWUR/ PHWURSROLWDQUDLOZD\V7KHIDUHRI0HWUR/LQHKDGULVHQFRQVL in 1980, three times higher than the fare at the opening, with an additional charge at the opening, with an additional charge in 1980, three times higher than the fare as high as the rate at the opening. In 1984, of 6.38 won per 6 km, about two times right before the introduction of the zoning system, the basic fare had reached 140 ZRQZLWKDQDGGLWLRQDOZRQFKDUJHGIRUHYHU\QHZNP$VRI RI6HRXO0HWURLVZRQZKHQSDLGXVLQJDWUDQVSRUWDWLRQFDUG GLVWDQFHRIDNPORQJWULS,IWKHWULSFRQWLQXHVRYHUWKHE ZRQLVFKDUJHGIRUHYHU\NPFRYHUHGWKHUHDIWHU7KHSDVVHQJHUVKRZHYHU DUHDOORZHGWRWUDQVIHUEHWZHHQWKHEXVHVDQGWKHVXEZD\VXSWRILYHWLPHVIRU IUHH0HDQZKLOHSDVVHQJHUVDJHGRUKLJKHUGLVDEOHGSDVVHQJHUVRUSHUVRQVRI QDWLRQDOPHULWFDQXVH6HRXO0HWUR/LQHIUHHRIFKDUJH

7KH/DZRQ8UEDQ5DLOVVWLSXODWHVWKDWWKHPHWURRSHUDWRUVVKRXOGUHSRUWWKHIDUH WRWKHJRYHUQLQJDXWKRULW\DQGWKDWVXFKIDUHPXVWEHVHWZLWKLQWKHOLPLWVLPSRVHG E\WKHKHDGRIWKHPHWURSROLWDQJRYHUQPHQW6WLOOWKHPHWURRSHUDWRUVDUHUHTXLUHG to set the fare reasonably after carefully weighing the fare with those of other mass transit means, with the preliminary notice on the fare change being a precondition. This is because the urban rails are the mass transit de rigueur for the public, which DJDLQMXVWL¿HVWKHJRYHUQPHQWDOLQWHUYHQWLRQLQWHUPVRIWKHWUDQVSRUWDWLRQZHOIDUH and price management.

,QYLHZRILWVUROHDVDPDVVWUDQVLWIULHQGO\WRFRPPRQSHRSOHWKHIDUHRIWKH local urban railway was made to rise slower than the economic growth rate. When 6HRXO0HWUR/LQHRSHQHGWRWKHSXEOLFLQIRULQVWDQFHWKHIDUHIRUWKH NPOHJEHWZHHQ6HRXODQG$Q\DQJ6WDWLRQZDVZRQ,IDGMXVWHGDFFRUGLQJWR WKHSHUFDSLWDJURVVGRPHVWLFSURGXFWRI86'DQGWKHH[FKDQJHUDWHRIZRQ SHU86'LQWKHIDUHZRQIRUWKHNPOHJEHWZHHQ6HRXODQG$Q\DQJ 6WDWLRQLVMXVWRIWKHSHUFDSLWDGRPHVWLFSURGXFWRIZRQ,WVVKDUH

Unit: Won 1400 0.040%

1200 0.035% 0.030% 1000 0.025% 800 0.020% 600 0.015% 400 0.010% 200 0.005% 0 0.000% 1974 1975 1980 1984 1986 1990 1995 2000 2005 2011

Basic Fare Fare for Seoul‐Anyang Fare for Seoul‐Anyang Station Leg as Station Leg Adjusted to Per‐Capita GDP

Share of the urban rail fare in the per-capita gross domestic product

 Chapter 3 58 GHFUHDVHWR XUEDQUDLOZD\ KLVLQWHUYHQWLRQ WKHJRYHUQPHQW WWKHQQRWLILHVWKH QW,QWKHVWR LILFDWLRQVZLWKWKH DLOZD\V7KHEDVLF QGQRWLI\WKHSXEOLF HQJHUVLWVWLSXODWHV HWVWKHUHTXLUHPHQWV RHQFRXUDJHWKHXVH GDQGWKH¿QDQFLQJ DVDPDVWHUSODQIRU LWDQJRYHUQPHQW VLWKDVDSSURYHG HFLW\ VXUEDQUDLOZD\ \HDUV$FFRUGLQJO\LI OLJKWUDLOZD\VDQGWKH DQVLWWKHUHGXFWLRQRI WDWLRQ&RPPLWWHH7KH OLWLHVOLNHHVFDODWRUVDQG RVVGRPHVWLFSURGXFWKDV Urban Railway Development Urban Railway 2QHRIWKHNH\UROHVRIWKHFHQWUDOJRYHUQPHQWZDVWRDSSURYHD 7KHFHQWUDOJRYHUQPHQWUHYLHZVWKHVXEPLWWHGEDVLFSODQIRUWKH 3.1 The Central Government 3.1 3. The Governing Body and Its Role in the 3. The Governing KDGGURSSHGWRLQKRZHYHUIROORZHGE\DFRQWLQXHG LQLQDQGLQ7KDQNVWRW people, friendly to common as a mass transit the urban railway policy to maintain WKHVKDUHRIWKHXUEDQUDLOIDUHLQWKHFRXQWU\ VSHUFDSLWDJU VWHDGLO\GHFOLQHGRYHUWKH\HDUV H[SDQVLRQSODQWRSUHYHQWWKHXQEULGOHGFRQVWUXFWLRQRIXUEDQU SODQFRPSOHWHZLWKWKHIXWXUHURXWHPDSZDVLQWHQGHGWRVHUYH WKHFLW\ VXUEDQUDLOZD\QHWZRUNWREHEXLOWRYHUWKHQH[WWHQ WKHEDVLFSODQWKDWFRQWDLQHGDWOHDVWDWHQ\HDUURDGPDSRIWK RIWKHXUEDQUDLOZD\EDVLFSODQVXEPLWWHGE\WKHORFDOJRYHUQPH VZHOOEHIRUHWKHHQDFWPHQWRIWKH/DZRQ8UEDQ5DLOZD\V DSSURYHGWKHEDVLFSODQRQDQLQGHSHQGHQWOLQHEXWVLQFHWKH an independent line is to be constructed, the line should also be included in the basic an independent line is to be constructed, SODQZKLFKDJDLQUHTXLUHGDSSURYDOE\WKHKHDGRIWKHPHWURSRO GHYHORSPHQWLQFOXGLQJLWVURXWHVFRQVWUXFWLRQFRVWDQGSHULR SODQLQFOXGLQJWKHVKDUHWREHSDLGE\WKHORFDOJRYHUQPHQW, SXEOLFRIWKHEDVLFSODQDIWHU  ILQHWXQLQJWKHUHTXLUHGPRG UHOHYDQWDXWKRULWLHVDQG  DUHYLHZE\WKH1DWLRQDO7UDQVSRU JXLGHOLQHIRUXUEDQUDLOZD\SURMHFWVLVGLYLGHGLQWRKHDY\DQG JRYHUQPHQWUHFRJQL]HVWKHYDOLGLW\RIDSURMHFWRQO\ZKHQLWPH RIWKHXUEDQSRSXODWLRQWUDQVLWGHPDQGDQG¿VFDOFRQGLWLRQ7 WKDWWKHEDVLFSODQVKRXOGLQFOXGHWKHEXLOGLQJRIDOLQNXSWU WKHWUDQVIHUGLVWDQFHDQGWKHLQVWDOODWLRQRIFRQYHQLHQFHIDFL HOHYDWRUVIRUWKHGLVDEOHG RIWKHXUEDQUDLOZD\DQGWRHQKDQFHWKHFRQYHQLHQFHRIWKHSDVV 7KHJRYHUQPHQWLVVXHVDQRSHUDWLQJOLFHQVHWRWKHSDUWLHVWKDWLQWHQGWRFRQVWUXFW DQGRSHUDWHDQXUEDQUDLOZD\7KHSRWHQWLDOOLFHQVHHVLQFOXGHORFDOJRYHUQPHQWV local public enterprises, or corporations entrusted with the construction and operation RIWKHXUEDQUDLOZD\E\WKHFHQWUDORUORFDOJRYHUQPHQW7KHFHQWUDOJRYHUQPHQW WKHQDSSURYHVWKHPDQDJHPHQWSODQVXEPLWWHGE\WKHRSHUDWLRQOLFHQVHHIRUWKH FRQVWUXFWLRQDQGRSHUDWLRQRIDQXUEDQUDLOZD\EHIRUHSXEOLVKLQJWKHQRWL¿FDWLRQ )RUDOLFHQVHWREHLVVXHGWKHIROORZLQJFRQGLWLRQVPXVWEHPHW  WKHSODQVKRXOGEHDGHTXDWHIRUWKHFLW\ VWUDQVLWGHPDQG  WKHDSSOLFDQWVKRXOGEHFDSDEOHRIH[HFXWLQJWKHSURMHFWDQG  WKHSURMHFWVKRXOGEHHFRQRPLFDOO\IHDVLEOH

7KHFHQWUDOJRYHUQPHQWKDVEHHQVXSSRUWLQJWKHFRQVWUXFWLRQDQGRSHUDWLRQRI XUEDQUDLOZD\VE\SURYLGLQJJXLGHOLQHVIRUWKHLUSROLF\DQGWHFKQRORJ\,QWKHV LWVWLSXODWHGWKHUXOHVRQWKHFRQVWUXFWLRQDQGRSHUDWLRQRIHDFKOLQHSURYLGLQJ technical standards for the construction and operation of an urban railway. In the VWKHJRYHUQPHQWHQDFWHGWKHUHJXODWLRQRQWKHLVVXHRIXUEDQUDLOZD\ERQGV to promote the construction of urban railways, and stipulated the grounds for its SURYLVLRQRI¿VFDOVXSSRUWIRUWKHSURMHFWV,QWKHVWKHJRYHUQPHQWHQDFWHGWKH regulation on the technologies required for the construction and operation of safe DQGFRQYHQLHQWXUEDQUDLOZD\V

7KHFHQWUDOJRYHUQPHQWKDVEHHQILQDQFLQJWKHXUEDQUDLOSURMHFWV%HWZHHQWKH VDQGVWKHUHZDVQRVSHFLILFJXLGHOLQHIRUWKHILQDQFLQJRIXUEDQUDLO SURMHFWVZLWKWKHILQDQFLQJPRVWO\FRQVLVWLQJRIILVFDOVXSSRUWIURPWKHFHQWUDO JRYHUQPHQWDQGORDQVGHSHQGHQWRQWKH\HDU VILVFDOVLWXDWLRQ7KHILVFDOVXSSRUW IRUXUEDQUDLOSURMHFWVEHJDQWREHVHWWOHGKRZHYHUWKURXJKWKHIRUPXODWLRQRID clear guideline in 1991, to ensure the accountability for and organized management RIWKHSURMHFW7KHVKDUHVLQWKH¿VFDOVXSSRUWZHUHIRUWKHORFDOPHWURSROLWDQ JRYHUQPHQWVDQGIRU6HRXOZLWKERWKULVLQJWRDQGUHVSHFWLYHO\LQ GXHWRWKHSRRU¿VFDOFRQGLWLRQRIWKHORFDOJRYHUQPHQWV

7KHJRYHUQPHQWFXUUHQWO\SURYLGHV¿VFDOVXSSRUWRQO\IRUWKRVHSURMHFWVDGMXGJHG WREHHFRQRPLFDOO\IHDVLEOHDQGZKRVHEDVLFSODQVKDYHEHHQFRQ¿UPHGDFFRUGLQJWR WKH/DZRQ8UEDQ5DLOZD\V$FFRUGLQJWRWKHJXLGHOLQHVXSWRRIWKHSURMHFW FRVWVKDOOEHSDLGE\WKHFHQWUDOJRYHUQPHQWWR6HRXO&LW\DQGWRWKHORFDO

59 Chapter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¿VFDOVX of an urban of the debt that they incurred for the construction principal and interest railway. HYDOXDWLRQRIWKHSURMHFWVDQGVRWKDWHI¿FLHQW¿VFDOVXSSRUWF VKRXOGSDVVWKHSUHOLPLQDU\IHDVLELOLW\WHVWEHIRUHLWFDQEHS study. since 2000 had to pass the preliminary feasibility WKHJRYHUQPHQWKDVEHHQGHYHORSLQJXUEDQUDLOZD\WHFKQROR VXVSHQGRUUHGXFHLWV¿VFDOVXSSRUWIRUDQHZRUSHQGLQJSURMHF RIDQXUEDQUDLOZD\URVHLQWKHFHQWUDOJRYHUQPHQWEDFNGD SURYLGH¿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¿FLHQWFRQVWUXF :LWKWKHJURZLQJGHPDQGIRUOLJKWUDLOVLQDQGRXWRIWKHFRXQW FDUULHGRXWUHVHDUFKDQGGHYHORSPHQWRQDYDULHW\RIOLJKWUDLO DVWKHUXEEHUZKHHOHG$*7XUEDQPDJOHYDQGZLUHOHVV FDWHQDU\ JRYHUQPHQWV,IDORFDOJRYHUQPHQWFDQQRWDIIRUGWRUHSD\WKH KRPHJURZQXUEDQUDLOZD\WHFKQRORJ\KDVDGYDQFHGPDUNHGO\WKURXJ GHYHORSPHQWUHVROYLQJWKHLVVXHRIFRVWRYHUUXQVDQGPDLQWHQDQ KDGRIWHQGRJJHGWKHXUEDQUDLOZD\SURMHFWVFRQGXFWHGZLWKWKH technologies.

3.2 The Role of the Local Government

7KHFRPSHWHQWDXWKRULW\LQUHODWLRQWRXUEDQUDLOZD\SURMHFWVLVWKHORFDO PHWURSROLWDQJRYHUQPHQW$VVXFKWKHKHDGRIDPHWURSROLWDQJRYHUQPHQWVKRXOG GUDIWDWHQ\HDUURDGPDSRILWVXUEDQUDLOZD\SODQDQGVKRXOGVXEPLWLWWRWKH UHVSRQVLEOHPLQLVWU\7KHORFDOJRYHUQPHQWVKRXOGVHWXSDEDVLFSODQRQHDFKOLQH WKDWLWSODQVWROD\GRZQDQGVKRXOGREWDLQDSSURYDOIURPWKHFHQWUDOJRYHUQPHQWE\ GUDIWLQJDZRUNLQJSODQ7KHXUEDQUDLOZD\EDVLFSODQLQFOXGHV  WKHFKDUDFWHULVWLFVDQGFXUUHQWWUDI¿FRIWKHXUEDQWUDQVSRUWDWLRQQHWZRUNDQGD SURMHFWLRQRIWKHIXWXUHWUDQVLWGHPDQG  WKHHFRQRPLFIHDVLELOLW\RIWKHXUEDQUDLOZD\SURMHFWDQGWKHHYDOXDWLRQRIRWKHU particulars;  DURXJKURXWHPDSLQFOXGLQJWKHQDPHDQGWRWDOOHQJWKRIWKHSODQQHGOLQHWKH starting and terminal points, and the locations of the stations and of the car depot;  WKHFRQVWUXFWLRQSHULRGDQG¿QDQFLQJSODQLQFOXGLQJWKHVKDUHWREHSDLGE\WKH ORFDOJRYHUQPHQW  DURXJKHVWLPDWLRQRIWKHFRQVWUXFWLRQFRVWDQGWKHPLGDQGORQJWHUPIXQG management plan;  DURDGWUDI¿FPDQDJHPHQWSODQDORQJWKHSURSRVHGOLQHGXULQJWKHFRQVWUXFWLRQ  WKHEXLOGLQJRIOLQNXSLQIUDVWUXFWXUHZLWKRWKHUWUDQVSRUWDWLRQV\VWHPVDQG  WKHHPSOR\PHQWRIWKHXUEDQUDLORSHUDWLQJVWDII

7KHPHWURSROLWDQFLWLHVKDYHRSHUDWHGWKHLURZQXUEDQUDLOZD\SODQQLQJWHDPRU XUEDQUDLOZD\FRQVWUXFWLRQKHDGTXDUWHUVVWDIIHGZLWKORFDOJRYHUQPHQWRIILFLDOV The urban railway planning team mainly carries out the task of establishing the EDVLFSODQDQGDVRIWKLV\HDU  LWLVLQRSHUDWLRQLQ'DHMHRQ&LW\'XULQJWKH FRQVWUXFWLRQVWDJHWKHWHDPLVH[SDQGHGDQGUHQDPHGދދ8UEDQ5DLOZD\&RQVWUXFWLRQ +HDGTXDUWHUVތތ7KHKHDGTXDUWHUVLVFXUUHQWO\DFWLYHLQ'DHJX,QFKHRQDQG *ZDQJMXDQGLVRUJDQL]HGDVDQXUEDQUDLOZD\EXUHDXLQWKHXUEDQLQIUDVWUXFWXUH KHDGTXDUWHUVLQ6HRXO&LW\0HDQZKLOHLQ%XVDQ%XVDQ7UDQVSRUWDWLRQ&RUSRUDWLRQ DORFDOSXEOLFHQWHUSULVHLVRYHUVHHLQJWKHFRQVWUXFWLRQDQGRSHUDWLRQRIWKHXUEDQ UDLOZD\SURMHFW7KH%XVDQ0HWUR/LQHSURMHFWVWDUWHGDIWHUWKHHVWDEOLVKPHQWRI

61 Chapter 3 62 GLQJWKH WKHORFDO RPPHUFLDO %XVDQZKLOH UDWLRQZKLFK 8UEDQ7UDQVLW DHJX*ZDQJMX HPIRUGRPHVWLF /DZRQ%XVDQ HWURSROLWDQ5DSLG HXUEDQUDLOZD\ DWLRQ&RUSRUDWLRQ WKHUDLOZD\VWDWLRQ WKHXUEDQUDLOZD\ LW\ZDVFKDQJHGWR QW:KLOHWKHORFDO XUEDQUDLOZD\DQG 2QWRSRIWKH¿VFDO WRLVVXLQJERQGVDQG JOHSXEOLFHQWHUSULVH UPHDQVRI¿QDQFLQJ HDFKORFDOJRYHUQPHQW UHVLGHQWLDOFRQYHQLHQFHDQGSXEOLFZHOIDUHIDFLOLWLHVZLWKLQ sphere; FRQVWUXFWLRQDQGVXSHUYLVLRQRIDQXUEDQUDLOZD\RSHUDWLRQV\VW DQGRYHUVHDVFOLHQWV $VDFRPSHWHQWDXWKRULW\UHVSRQVLEOHIRUWKHXUEDQUDLOSURMHFW At present, the urban rail built with fiscal support from Seoul is usually being support from Seoul is usually being At present, the urban rail built with fiscal  KRXVLQJDQGXUEDQGHYHORSPHQWSURMHFWVLQDVVRFLDWLRQZLWKWK  RWKHUGHULYDWLYHEXVLQHVVHVRIXUEDQUDLOZD\RSHUDWLRQLQFOX  FRQVWUXFWLRQDQGRSHUDWLRQRIRWKHUOLQNXSWUDQVLWVZLWKWKH  FRQVWUXFWLRQVXSSO\DQGPDQDJHPHQWRIWKHDGPLQLVWUDWLYHF  FRQVWUXFWLRQDQGRSHUDWLRQRIWKHFLW\ VXUEDQUDLOZD\  XUEDQSODQQLQJDFFRUGLQJWRWKHFRQVWUXFWLRQDQGRSHUDWLRQRI JRYHUQPHQWDVVXPHVWKHUHVSRQVLELOLW\IRU¿QDQFLQJWKHSURMHFW VXSSRUWIURP6HRXOWKHORFDOJRYHUQPHQWFDQDFWLYHO\VHHNRWKH UDQJLQJIURPREWDLQLQJD¿VFDOOLQHIURPWKHPXQLFLSDODFFRXQW procuring bank loans. 3.3 The Role of Public Corporations 3.3 %XVDQ&LW\6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVLQEXW%XVDQ Authority has assumed responsibility since 1988, after its incorporation as an as an after its incorporation since 1988, has assumed responsibility Authority XPEUHOODLQVWLWXWLRQRIWKHFHQWUDOJRYHUQPHQWDFFRUGLQJWRWKH 7UDQVSRUWDWLRQ&RUSRUDWLRQ,Q%XVDQ8UEDQ7UDQVLW$XWKRU Busan City. controlled by a local corporation RYHUVHHVERWKWKHFRQVWUXFWLRQDQGRSHUDWLRQRIWKHSURMHFWLQ PDQDJHGE\DSXEOLFHQWHUSULVHFRQWUROOHGE\WKHORFDOJRYHUQPH JRYHUQPHQWXVXDOO\FRQVLJQVWKHPDQDJHPHQWRIWKHUDLOWRDVLQ 6HRXOKDVWZR6HRXO0HWURIRUWKH¿UVWSKDVHOLQHVDQG6HRXO0 7UDQVLW&RUSRUDWLRQIRUWKHVHFRQGSKDVHOLQHV%XVDQ7UDQVSRUW 0HWURSROLWDQ5DSLG7UDQVLW&RUSRUDWLRQPDQDJHVWKHSURMHFWLQ' DQG'DHMHRQ,Q,QFKHRQLWLVPDQDJHGE\,QFKHRQ7UDQVLW&RUSR RYHUVHHVWKHFLW\ VPDVVWUDQVLWVLQJHQHUDO7KHRUGLQDQFHRI with regard to the establishment of urban railway operating authorities stipulates that with regard to the establishment of urban WKH\FDUU\RXWWKHIROORZLQJWDVNV RSHUDWLRQRIDSXEOLFEXVVHUYLFHZLWKQRRSHUDWLRQDORYHUODSZLWKWKHH[LVWLQJ bus operators; and  PDQDJHPHQWRIWKHSURMHFWHQWUXVWHGE\WKHFHQWUDODQGORFDOJRYHUQPHQWDQG other clients.

4. Evolution of the Administrative Body Governing the Urban Railways

4.1 Evolution of the Administrative Body of the Central Government

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¿HGWKHSXEOLFRIWKH IDFLOLW\VHOHFWLRQDQGZRUNLQJSODQRI6HRXO0HWUR/LQHDIWHUWKHSURMHFWZDV UHYLHZHGE\WKH1DWLRQDO8UEDQ3ODQQLQJ&RPPLWWHH6LQFHWKHHQDFWPHQWLQ RIWKH/DZRQWKH&RQVWUXFWLRQDQG2SHUDWLRQRI8QGHUJURXQG5DLOZD\VKRZHYHU WKHDSSURYDOE\WKH0LQLVWU\RI7UDQVSRUWDWLRQKDVEHHQDVVXPHGWRKDYHWKHVDPH ELQGLQJSRZHUZLWKUHJDUGWRWKHSURMHFW VOHJDOLW\

7RVWDUWDQXUEDQUDLOZD\SURMHFWWKHSURMHFWLQLWLDWRUVKRXOGREWDLQDQRSHUDWLRQ OLFHQVHDVZHOODVDSSURYDORIWKHZRUNLQJSODQIURPWKH0LQLVWU\RI7UDQVSRUWDWLRQ ZKLFKKDGEHHQLQSODFHVLQFHWKHIRXQGLQJRIWKH5HSXEOLFRI.RUHD7KHJRYHUQLQJ DXWKRULW\LQWKHVDLGPLQLVWU\ZLWKUHJDUGWRWKH6HRXO0HWUR/LQHSURMHFWLQWKH VZDVWKHJHQHUDOWUDQVSRUWDWLRQSODQQLQJRI¿FHU:LWKWKHHQDFWPHQWLQ RIWKH/DZWR3URPRWHWKH&RQVWUXFWLRQRI8QGHUJURXQG5DLOZD\VWKH8UEDQ 7UDQVSRUWDWLRQ%XUHDXLQFOXGLQJWKH8QGHUJURXQG5DLOZD\6HFWLRQXQGHULWVDUP

6) Enacted in 1962 to stipulate the particulars of the setting up and execution of urban planning, the law was abolished in February 2002 with the enactment of the Law on the Planning and Use of Land.

63 Chapter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¿FHRI0HWURSROLWDQ7UDQVSRUWDWLRQ3ROLF\LQWKH0LQLVWU\ 5DLOZD\6HFWLRQXQGHUWKH*URXQG7UDQVSRUWDWLRQ%XUHDXHYHQDI PLQLVWU\ZDVFKDQJHGWRWKH0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVS 2005. WKH0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQZDVERUQ PLQLVWULHVZHUHPHUJHGLQDQDWWHPSWWRUHDOL]HDVPDOOJRYHUQP HVWDEOLVKDQHIILFLHQWFRQQHFWLRQEHWZHHQWKHLQYHVWPHQWDQGPD VRFLDORYHUKHDGFDSLWDO8UEDQUDLOZD\DIIDLUVZHUHVWLOODGPLQ as a pressing issue. Seoul area emerged when the metropolitan transit in the greater 7KH0HWURSROLWDQ5DLOZD\6HFWLRQZDVHVWDEOLVKHGXQGHUWKHRIIL WKHFRQVWUXFWLRQRIPHWURSROLWDQUDLOZD\VLQDVVRFLDWLRQZLWKW The urban and metropolitan railway of new towns in the greater Seoul area. DIIDLUVZHUHDGPLQLVWHUHGE\WKH8UEDQ5DLOZD\7HDPDQG0HWURSR 7HDPUHVSHFWLYHO\ZKLFKZHUHLQVWDOOHGXQGHUWKH+HDGTXDUWHUV 7UDQVSRUWDWLRQHYHQDIWHUWKHPLQLVWU\ZDVUHVKXIÀHGLQWRDKH XUEDQUDLOZD\DIIDLUVZHUHDGPLQLVWHUHGE\WKH8UEDQ7UDQVSRUWD WKHHQDFWPHQWLQRIWKH/DZRQ8UEDQ5DLOZD\VWKH8UEDQ7 %XUHDXZDVUHYLYHGZKLOHWKHQHZO\HVWDEOLVKHGXUEDQVXEZD\VH EXUHDXRYHUVDZWKHXUEDQUDLOZD\DIIDLUV7KHXUEDQVXEZD\VHFW WRWKHXUEDQUDLOZD\VHFWLRQLQ7KH8UEDQ7UDQVSRUWDWLRQ UHQDPHGދދ*URXQG7UDQVSRUWDWLRQ%XUHDXތތLQEXWWKH8UEDQ UHPDLQHGZHOOLQWRODWHZKHQWKH0LQLVWU\RI&RQVWUXFWLRQ 7UDQVSRUWDWLRQPHUJHGWREHFRPHWKH0LQLVWU\RI&RQVWUXFWLRQDQ KRZHYHUZDVPHUJHGZLWKWKH*URXQG7UDQVSRUWDWLRQ%XUHDXLQ ZDVHVWDEOLVKHGLQWKH0LQLVWU\RI7UDQVSRUWDWLRQ7KH8UEDQ7U DQG0DULWLPH$IIDLUV7KHNH\WDVNVRIWKH0HWURSROLWDQ5DLOZD\6HFWLRQLQFOXGH the establishment of laws, rules, and design requirements for metropolitan and urban UDLOZD\VUHVHDUFKDQGGHYHORSPHQWRQXUEDQUDLOZD\WHFKQRORJLHVPDQDJHPHQWRI SULYDWHO\IXQGHGOLJKWUDLOZD\SURMHFWVUHYLHZDQGDSSURYDORIXUEDQUDLOZD\SODQV DQGPDQDJHPHQWRIPHWURSROLWDQUDLOZD\SURMHFWV

4.2 Evolution of the Administrative Body of the Local Governments

6HRXO&LW\HVWDEOLVKHG6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVLQ-XQHDQG HQWUXVWHGLWZLWKWKHFRQVWUXFWLRQRI0HWUR/LQH7KHRI¿FHZDVUHQDPHGދދ6XEZD\ +HDGTXDUWHUVތތLQDQGWKH6XEZD\6DOHV%XUHDXZDVHVWDEOLVKHGWRRSHUDWH 0HWUR/LQH7KHRI¿FHZDVGLVVROYHGZKHQWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQH 2 was completed. Seoul City established Seoul City Subway Corporation, a local public corporation, in September 1981, and entrusted it with the construction of 0HWUR/LQHDQG%HJLQQLQJLQWKHFRUSRUDWLRQWRRNRYHUWKHRSHUDWLRQRI DOOWKHPHWUROLQHVLQ6HRXO5HQDPHGދދ6HRXO0HWURތތLQWKHFRUSRUDWLRQKDV VXEVLGLDULHVEHVLGHVWKHKHDGTXDUWHUVLQFOXGLQJDFXVWRPHUVHUYLFHFHQWHUDUDLOFDU RI¿FHDWUDLQFUHZRI¿FHDWUDLQFRQWUROFHQWHUDWHFKQLFDORI¿FHDUDLOHTXLSPHQW RI¿FHDQGDWHFKQRORJ\UHVHDUFKFHQWHU

,Q1RYHPEHU6HRXO&LW\ODXQFKHG6HRXO&LW\6XEZD\&RQVWUXFWLRQ +HDGTXDUWHUVDQGHQWUXVWHGLWZLWKWKHFRQVWUXFWLRQRIWKHVHFRQGSKDVHPHWUROLQHV ,Q0DUFKWKHFLW\HVWDEOLVKHG6HRXO0HWURSROLWDQ5DSLG7UDQVLW&RUSRUDWLRQ DQGHQWUXVWHGLWZLWKWKHRSHUDWLRQRIWKHVHFRQGSKDVHPHWUROLQHV0HDQZKLOHLQ 2008, Subway Construction Headquarters was merged with Construction Safety +HDGTXDUWHUVWREHFRPH8UEDQ,QIUDVWUXFWXUH+HDGTXDUWHUVZKLOHWKH8UEDQ Railway Bureau in the headquarters takes care of the construction of urban railways, LQFOXGLQJWKHH[WHQVLRQRI6HRXO0HWUR/LQH7KH8UEDQ5DLOZD\%XUHDXFRQVLVWV RIWKHGHVLJQHQJLQHHULQJFLYLOHQJLQHHULQJFRQVWUXFWLRQDQGIDFLOLW\GHSDUWPHQWV

Busan City established Busan City Subway Construction Headquarters in 1980 WRFRQVWUXFW0HWUR/LQH,QWKHKHDGTXDUWHUVZDVUHQDPHGދދ%XVDQ8UEDQ 7UDQVLW$XWKRULW\ތތDQGFDPHXQGHUWKHFRQWURORIWKHFHQWUDOJRYHUQPHQWDIWHUWKH HQDFWPHQWLQRIWKH/DZRQ%XVDQ8UEDQ7UDQVLW$XWKRULW\%XVDQ8UEDQ 7UDQVLW$XWKRULW\DGPLQLVWHUHGWKHFRQVWUXFWLRQRI0HWUR/LQHDQGLQWKHV

65 Chapter 3 66 WDQ5DSLG 7KHWHDP QVWUXFW0HWUR WHUVތތLQ DVFKDQJHGWR Vތތ,WFXUUHQWO\ QDPHGދދ8UEDQ ZKLFKLQ RWKHUFLWLHVZLWK GXQWLOEXW RI0HWUR/LQH DWLRQRIWKHSODQ LQJDQGRSHUDWLQJ UFRQVWUXFWLRQIRU RQVWUXFWLRQRIWKH SHUDWLRQ3ODQQLQJ UDQVLW&RUSRUDWLRQ VWKHDIIDLUVRIWKH OLVKHG'DHJX&LW\ &LW\7KHPDVVLYH HTXHVWVLQFH DQGFXUUHQWO\ VKHG,QFKHRQ&LW\ RQRI0HWUR/LQH KDOWHG,WZDVUHQDPHG 'DHJX&LW\ODXQFKHGWKH'DHJX&LW\6XEZD\3ODQQLQJ7HDPLQ Incheon City launched the Subway Planning Team in 1991, which was expanded in 1991, Team Incheon City launched the Subway Planning *ZDQJMX&LW\HVWDEOLVKHGWKH6XEZD\3ODQQLQJ7HDPLQWRFR DQGRI0HWUR/LQHLQDQGRSHUDWHG0HWUR/LQH,QPDQ\ WKHLURZQPHWUROLQHVKRZHYHUWKHORFDOJRYHUQPHQWVDUHPDQDJ WKHVXEZD\6SXUUHGE\WKLVIDFWWKHUHKDVEHHQDFRQVLVWHQWU WRWUDQVIHUWKHWDVNRI%XVDQ8UEDQ7UDQVLW$XWKRULW\WR%XVDQ GHEWDQGORVVRIWKHDXWKRULW\KRZHYHUKLQGHUHGWKHLPSOHPHQW IRUQHDUO\QLQH\HDUV,Q%XVDQ8UEDQ7UDQVLW$XWKRULW\Z The the control of Busan City. Corporation, which was under Transportation Busan FRUSRUDWLRQRSHUDWHV%XVDQ0HWUR/LQHWRDQGFRQGXFWVWKHF city's urban railway. in April 1992 to Subway Construction Headquarters to start the construction of to Subway Construction Headquarters to start the construction of April 1992 in 0HWUR/LQHLQ7KHKHDGTXDUWHUVKDVFRQVLVWHQWO\H[SDQGH ZDVH[SDQGHGLQWR6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVLQ$SULO ZDVUHQDPHGދދ'DHJX&LW\8UEDQ5DLOZD\&RQVWUXFWLRQ+HDGTXDUWHU RYHUVHHVWKHFRQVWUXFWLRQRI'DHJX0HWUR/LQH7KHFLW\HVWDE 6XEZD\&RUSRUDWLRQLQZKLFKZDVUHQDPHGދދ'DHJX0HWURSROL 7UDQVLW&RUSRUDWLRQތތLQ,WRSHUDWHV0HWUR/LQHDQG LWUHGXFHGLWVVL]HDIWHUWKHGHVLJQRI0HWUR/LQHDQGZDV DQGH[SDQGHGWRދދ8UEDQ5DLOZD\&RQVWUXFWLRQ+HDGTXDUWHUVތތLQ RYHUVHHVWKHFRQVWUXFWLRQRI0HWUR/LQH,QFKHRQ&LW\HVWDEOL 6XEZD\&RUSRUDWLRQLQDQGHQWUXVWHGLWZLWKWKHRSHUDWLRQ ZKLFKZDVUHQDPHGދދ,QFKHRQ0HWURތތLQ,Q,QFKHRQ7 the operation of the city's urban railway. was launched and was entrusted with 8QOLNH%XVDQ7UDQVSRUWDWLRQ&RUSRUDWLRQWKHFRUSRUDWLRQPDQDJH railway. mass transits in the city other than the urban /LQHDQGWKHWHDPZDVUHQDPHGދދ6XEZD\&RQVWUXFWLRQ+HDGTXDU 7KHKHDGTXDUWHUVZDVH[SDQGHGDIWHUWKHVWDUWRIWKHFRQVWUXFWL LQEXWZDVGRZQVL]HGEHJLQQLQJLQ,QLWZDVUH 5DLOZD\&RQVWUXFWLRQ+HDGTXDUWHUVތތ7KHFLW\KDVQROLQHVXQGH QRZEXWSODQVWREXLOG0HWUR/LQH7KHFLW\HVWDEOLVKHGWKH2 7HDPLQ6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVRQDOLPLWHGEDVLV)XUWKHU*ZDQJMX 0HWURSROLWDQ7UDQVLW&RUSRUDWLRQHVWDEOLVKHGLQKDVVLQFHRSHUDWHG0HWUR Line 1.

'DHMHRQ&LW\HVWDEOLVKHGWKH6XEZD\3ODQQLQJ7HDPLQWRFRQVWUXFW0HWUR /LQHDQGWKHWHDPZDVUHQDPHGދދ6XEZD\&RQVWUXFWLRQ+HDGTXDUWHUVތތLQ 7KHKHDGTXDUWHUVZDVH[SDQGHGDIWHUWKHVWDUWRIWKHFRQVWUXFWLRQRI0HWUR/LQHLQ EXWZDVGRZQVL]HGDIWHUWKHRSHQLQJRI0HWUR/LQHLQ$WSUHVHQWLWLV VWLOODSODQQLQJWHDPWKDWRYHUVHHVWKHSODQQLQJRI'DHMHRQ0HWUR/LQH,Q the city established the Subway Corporation Planning Team in Subway Construction +HDGTXDUWHUVRQDOLPLWHGEDVLV)XUWKHU'DHMHRQ0HWURSROLWDQ7UDQVLW&RUSRUDWLRQ HVWDEOLVKHGLQKDVVLQFHRSHUDWHG0HWUR/LQH

5. Evolution of the Laws on Urban Railways

5.1 Law on Railroads

(QDFWHGLQWKH/DZRQ5DLOURDGVZDVHQIRUFHGRQDOOWKHUDLOZD\VEXLOWDQG RSHUDWHGLQWKHFRXQWU\$FFRUGLQJWRWKHODZWKHRSHUDWRUVRISULYDWHUDLOZD\V LQFOXGLQJXUEDQUDLOZD\VKDGWRREWDLQDOLFHQVHIURPWKH0LQLVWU\RI7UDQVSRUWDWLRQ 7KHIDUHVRIVXFKUDLOZD\VZHUHDOVRUHTXLUHGWREHDSSURYHGE\WKH0LQLVWU\7KH law mostly included stipulations with regard to the fares of and transport by railways and had limited stipulations on the details of urban railways. The law was abolished in 2005, during the reformation of the country's railway structure.

5.2 Law to Promote the Construction of Underground Railways

(QDFWHGLQWKHODZZDVHQDFWHGWRSURPRWHWKHFRQVWUXFWLRQRIXQGHUJURXQG UDLOZD\VDVVWLSXODWHGLQWKH/DZRQ5DLOURDGVWKXVLPSURYLQJWKHWUDIILFLQWKH cities and the surrounding areas. The law was enforced on underground railways built according to the Law on Railroads, or on those built by corporations entrusted with the construction and operation of underground railways commissioned by WKHORFDOJRYHUQPHQWZLWKDQRSHUDWLRQOLFHQVHRUE\.25$,/7KHIDFLOLW\RIDQ underground railway is decided as part of the urban planning, as stipulated in the

 Chapter 3 68 UDWLRQRI QGHUJURXQG RMHFWVKRXOG IRURSHUDWLRQ HJRYHUQPHQW ZKLFKLWKRSHG KH0LQLVWU\RI ދދXQGHUJURXQG GVZKLFKZHUH QGUDLOZD\URXWH WKH0LQLVWU\RI GDSSURYDOE\WKH WKHEXLOGHUVRIDQ HRIWKHERQGVZDV 7KHODZVWDWHGWKDW OZD\VFRXOGDOVREH WKHFRQVWUXFWLRQRIWKH 7KHODZVWDWHGWKDWLIDQXQGHUJURXQGUDLOZD\SURMHFWLVJUDQWH 5HJDUGLQJWKHILQDQFLQJRIWKHSURMHFWXQGHUJURXQGUDLOZD\ERQ railway was allowed to entrust a corporation with The builder of an underground :LWKWKHRSHQLQJRI6HRXO0HWUR/LQHDQGKRZHYHUWK 5.3 Law on the Construction and Operation of Underground Railways of Underground 5.3 Law on the Construction and Operation /DZWR3URPRWHWKH&RQVWUXFWLRQRI8QGHUJURXQG5DLOZD\VWKHSU /DZRQ8UEDQ3ODQQLQJZKHUHDVWKHGHVLJQDWLRQRIWKHXQGHUJURX ZDVGHFLGHGE\WKH0LQLVWU\RI7UDQVSRUWDWLRQ EHDVVXPHGWRKDYHEHHQDXWRPDWLFDOO\JUDQWHGDSSURYDODVZHOO ways to finance The law also listed of Land. Appropriation by the Law on the as the rules on issuing and railways as well underground the construction of that when needed, the The law also stipulated bonds. railway buying underground FHQWUDOJRYHUQPHQWFDQVXEVLGL]HWKHSURMHFWRUOHQGPRQH\IRU of underground As the law focused only on the construction railway. underground UDLOZD\VLWZDVFKDQJHGWRWKH/DZRQWKH&RQVWUXFWLRQDQG2SH 8QGHUJURXQG5DLOZD\VLQZKLFKLQFOXGHGWKHRSHUDWLRQRIX railways. WKHFRQVWUXFWLRQDQGRSHUDWLRQRIWKHUDLOZD\DIWHUDSSURYDOE\ shifted its focus to the operation of underground railways by enacting in 1986 the shifted its focus to the operation of underground /DZRQWKH&RQVWUXFWLRQDQG2SHUDWLRQRI8QGHUJURXQG5DLOZD\V ZRXOGHQKDQFHWKHRSHUDWLRQHI¿FLHQF\RIXQGHUJURXQGUDLOZD\V of a master plan on the construction and railway should be preceded by the creation suspension, merger, transfer, The law also stated that the operation of the railway. RUFORVXUHRIWKHRSHUDWLRQRIUDLOZD\VVKRXOGEHDSSURYHGE\W Transportation. RULJLQDOO\LVVXHGWR¿QDQFHWKHFRQVWUXFWLRQRIXQGHUJURXQGUDL LVVXHGWR¿QDQFHWKHRSHUDWLRQRIXQGHUJURXQGUDLOZD\V7KHQDP WKXVFKDQJHGIURPދދXQGHUJURXQGUDLOZD\FRQVWUXFWLRQERQGVތތWR UDLOZD\ERQGVތތ LIDORFDOJRYHUQPHQWDVSLUHVWREXLOGDQXQGHUJURXQGUDLOZD\ Transportation. It was also stipulated that the party entrusted with the construction DQGRSHUDWLRQRIWKHSURMHFWVKDOOEHKHOGDFFRXQWDEOHIRUVXFKDQGWKDWWKH underground facility built by the party entrusted with the construction and operation RIWKHSURMHFWVKDOOEHORQJWRWKHORFDOJRYHUQPHQWWKDWFRPPLVVLRQHGWKHSURMHFW 7KHODZDOVRVWDWHGWKDWWKH0LQLVWU\RI7UDQVSRUWDWLRQFRXOGRUGHUWKHRSHUDWRUVRI underground railways to modify their management plan, fare, and train operation VFKHGXOHWRLPSURYHWKHXUEDQWUDI¿FÀRZ

5.4 Law on Urban Railways

%\WKH/DZRQ8UEDQ5DLOZD\VZDVHQDFWHGWRLQFOXGHLQWKHXUEDQUDLO FDWHJRU\DYDULHW\RIUROOLQJVWRFNVVXFKDVWKHOLJKWUDLOZD\DQGWRVLPSOLI\WKH DGPLQLVWUDWLYHSURFHVVRIXUEDQUDLOFRQVWUXFWLRQSURMHFWV%\UHGH¿QLQJWKHXUEDQ UDLOZD\FDWHJRU\WKHODZPDGHLWSRVVLEOHWRSXVKIRUGLYHUVHOLJKWUDLOZD\SURMHFWV 7KHODZVWDWHGWKDWWKHSDUWLHVWKDWZLVKWRVWDUWDQXUEDQUDLOZD\SURMHFWVKRXOG ¿UVWREWDLQDOLFHQVHIURPWKH0LQLVWU\RI7UDQVSRUWDWLRQDQGVKRXOGDOVRKDYHWKH SURMHFW VZRUNLQJSODQDSSURYHGE\WKHPLQLVWU\,IWKHOLFHQVHHRIWKHXUEDQUDLOZD\ YLRODWHGWKHOLFHQVLQJFRQGLWLRQVWKH0LQLVWU\RI7UDQVSRUWDWLRQFRXOGUHSHDOWKH license or could halt the operation of the railway.

7RSURPRWHWKHFRQVWUXFWLRQRIXUEDQUDLOZD\VDQGWRLPSURYHWKHLUPDQDJHPHQW HI¿FLHQF\WKHEXLOGHUVRIXUEDQUDLOZD\VZHUHDOORZHGWRSXVKIRUWKHFRPPHUFLDO GHYHORSPHQWRIDދދUDLOZD\VWDWLRQVSKHUHތތZLWKLQDJLYHQUDGLXVVSUHDGLQJIURPWKH VWDWLRQ7KHSUR¿WVIURPWKHGHYHORSPHQWZRXOGEHXVHGWR¿QDQFHWKHFRQVWUXFWLRQ and operation of another urban railway. If an urban railway builder intends to use the underground space of someone else's land to construct an urban railway, the legal grounds of the compensation for the underground space and for the expropriation of WKHODQGZHUHFODUL¿HGVRWKDWDGHTXDWHFRPSHQVDWLRQFRXOGEHJLYHQGHSHQGLQJRQ WKHYDOXHDQGGHSWKRIWKHODQG

7KHNH\FRQWHQWVVWLSXODWHGLQWKHODZDUH  WKHIRUPXODWLRQRIDPDVWHUSODQIRUWKHXUEDQUDLOZD\  WKHGHVLJQDWLRQRIWKHXUEDQUDLOOLQHVDQGRIWKHRSHUDWLRQOLFHQVH  FRPSHQVDWLRQIRUWKHXQGHUJURXQGVSDFHDQGIRUWKHH[SURSULDWLRQRIWKHODQG  UHORFDWLRQRIWKHFRQVWUXFWLRQEDUULHUVDQGSROLF\RQUHVLGHQWUHORFDWLRQ

69 Chapter 3  HUQPHQWVZLWK LOZD\ D\ LOZD\RSHUDWLRQ DQGV DQGDUGVSHUIRUPDQFH facilities maintenance of the various equipment and facilities the rolling stocks - Rolling stocks quality verification - Urban rail supplies quality certification - Rail quality assurance, rolling stocks and other - Operation of the subway trains, and operation speed - Rules on train signaling - Safety standards on the rail, installation and - Planning on the maintenance of the urban rails of - Safety standards on the structure and equipment - Rules on the rail, platform, and other facilities - Special rules on the light rails

Rules and ordinances on the urban railway technologies on the urban railway and ordinances 3-4> Rules

1. Financing of Seoul's Urban Railway Projects

1.1 Financing of the Construction of the First-Phase Metro Lines )LQDQFLQJRIWKH6HRXO0HWUR/LQHSURMHFW

7KHEXGJHWUHTXLUHGIRUWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQHZDVDERXW ELOOLRQZRQDVRIIDUH[FHHGLQJZKDW6HRXO&LW\FRXOGOLQHXSIURPLWVRZQ FRIIHUVPDNLQJLWLQHYLWDEOHWRUHO\RQWKH¿VFDOVXSSRUWRIWKHFHQWUDOJRYHUQPHQWRU foreign loans.

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¿YH\HDUJUDFHSHULRG and the interest rate was 4.125% per year.

)RUWKHIODZOHVVILQDQFLQJRIWKHSURMHFW6HRXO&LW\HQDFWHGLQ'HFHPEHU WKH2UGLQDQFHRQ6SHFLDO$FFRXQWLQJIRU6HRXO&LW\6XEZD\&RQVWUXFWLRQ7KH ordinance stated that the tax incomes consisted of taxes transferred from the general

 Chapter 4  (unit: million won) H6HRXO0HWUR VIHUULQJPRQH\ IURPZKDWWKH IIHUHGORDQVEXW WRILVVXHGERQGV QDJUHHPHQW7KH YHUQPHQW QDQFLQJ7KHFLW\ IXQGVFRQVLVWHGRI [FHHGHGWKHLQLWLDO ¿QDQFHGE\LVVXLQJ WKHWD[LPSRVHGRQ USUR¿WHQWHUSULVHV 6HRXO&LW\6XEZD\ WZR\HDUVDIWHU 9,360 789 2,684 5,887

Financing structure of the Seoul Metro Line 1 project Line Metro Financing structure of the Seoul 4-1>

)LQDQFLQJRIWKH6HRXO0HWUR/LQHDQGSURMHFWV

6HRXO0HWUR/LQHDQGZHUHRULJLQDOO\VXSSRVHGWREH¿QDQFHGE\SULYDWHIXQGV $FFRUGLQJWRD¿QDQFLQJVFKHGXOHZULWWHQLQSULYDWHLQYHVWRUVZHUHWRVKRXOGHU WKHHQWLUHFRVWRIWKHSURMHFWV ELOOLRQZRQ ZLWK ELOOLRQZRQ WR EHVHOIILQDQFHGDQGWKHUHPDLQLQJ ELOOLRQZRQ WREHORDQHGIURPWKH 1DWLRQDO,QYHVWPHQW)XQG7KHVXEVHTXHQWLQÀDWLRQDQGWKHULVHRIWKHFRQVWUXFWLRQ FRVWKRZHYHUPDGHLWLPSRVVLEOHWRLQYROYHSULYDWHLQYHVWRUVLQWKHSURMHFW7KH VXEZD\FRPSDQ\ZDVGLVVROYHGDQG6HRXO6XEZD\&RUSRUDWLRQZDVHVWDEOLVKHGWR SXVKDKHDGZLWKWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQHDQGDVSXEOLFSURMHFWV In 1981, when Seoul Subway Corporation was established, the construction cost of 6HRXO0HWUR/LQHDQGKDGEDOORRQHGWRELOOLRQZRQPRUHWKDQGRXEOHWKH LQLWLDOEXGJHW7KHWRWDOSURMHFWFRVWDPRXQWHGWRWULOOLRQZRQDVRI2I WKLVWKHSRUWLRQRIVHOI¿QDQFLQJZDVDERXWRIWKHWRWDOEXGJHW ELOOLRQ ZRQ ZLWKPXFKRILWFRQVLVWLQJRIPXQLFLSDO¿QDQFLQJ ELOOLRQZRQ DQGWKH UHPDLQLQJELOOLRQZRQWREHOLQHGXSIURPWKH¿VFDOFRIIHUV7KHERUURZHGIXQGV DPRXQWHGWR WULOOLRQZRQ RIWKHWRWDOEXGJHWFRQVLVWLQJRIERQGV  ELOOLRQZRQ IRUHLJQORDQV ELOOLRQZRQ ILVFDOORDQVWKURXJKWKH1DWLRQDO ,QYHVWPHQW)XQG ELOOLRQZRQ DQGRWKHUEDQNORDQV ELOOLRQZRQ 

&RQVROLGDWHG¿QDQFLQJUHVXOWRIWKH¿UVWSKDVH6HRXO0HWUROLQHV

7KHWRWDOSURMHFWFRVWRIWKH¿UVWSKDVHPHWUROLQHVZLOODGGXSWRWULOOLRQ ZRQZLWKRXWFRXQWLQJWKHLQÀDWLRQUDWH7KHVHOI¿QDQFLQJDPRXQWHGWREDUHO\

 Chapter 4  269.2 1,193.2 (unit: billion won) QDQFLQJRIWKH RFRQVXPSWLRQ HWUROLQHVDGGHG SURMHFWVIXQGHG LQHV HRXO&LW\KDGWR QJORVVIURPWKH HW7KHVKDUHZDV O\WKHFLW\LQWHQGHG XO0HWUROLQHV,WLV HWKHVHFRQGSKDVH FHQWUDOJRYHUQPHQW MHFWUHOLHGWRRKHDYLO\ 252.3 WKHSURMHFW$VWKHWRWDO HEWWULOOLRQZRQ 18.1 548.9 Loans 386.3 15.8 55.6 314.9 Others 31.1 16 15.1 7DEOH!)LQDQFLQJVWUXFWXUHRIWKHÀUVWSKDVH6HRXO0HWURO Subtotal 2 1,760.2 Subtotal 1 632.4 14.9 328.2 289.3 Fiscal fund 314 2.3 15 297.6 Bank loans 368.6 183.6 185 Foreign loans 15.8 15.8 State subsidies 64.9 59.9 5 Government bonds 675.5 278.9 396.6 Municipal financing 536.4 14.9 Article Total Line 1 Line 2 Line 3/4 Total investment 2,392.6 33 877.1 1,482.5 Self- funds financing Borrowed $VRIWKHVKDUHRIWKH¿VFDOVXSSRUWIRUWKH6HRXOVXEZD\ 6HRXO&LW\UHOLHGRQERUURZHGIXQGVIRUPRUHWKDQRIWKHIL 1.2 Financing of the Second-Phase Seoul Metro lines Metro 1.2 Financing of the Second-Phase Seoul HYHQPRUHSUHVVXUHWRWKHUHSD\PHQWRIWKHGHEW$FFRUGLQJO\6 interest of the principal and incomes for repaying of the city's total tax spend 10% 1986. the debt since ZLWKSXEOLFLQYHVWPHQWDPRXQWVWRRIWKHWRWDOSURMHFWEXGJ MXVWKRZHYHURUELOOLRQZRQIRUWKH¿UVWSKDVH6HR FRQFOXGHGWKHUHIRUHWKDWWKH¿UVWSKDVH6HRXO0HWUROLQHVSUR RQWKHERUURZHGIXQGVZLWKRXWVXI¿FLHQW¿VFDOVXSSRUWIURPWKH 7KHOHVVWKDQH[SHFWHGRSHUDWLQJLQFRPHVIURPWKHILUVWSKDVHP RIWKHSURMHFWFRVWOHDYLQJWKHFLW\VLWWLQJRQPRXQWDLQVRIG ¿QDQFLQJVHFXUHGWKLVZD\ZDVEDUHO\RYHUELOOLRQZRQDQQXDO ILUVWSKDVH6HRXO0HWURSURMHFW7KLVFRXSOHGZLWKLWVRSHUDWL FRPSOHWHGPHWUROLQHVPDGHLWGLIILFXOWIRUWKHFLW\WRILQDQF 6HRXO0HWURSURMHFW$OWKRXJKWKHJRYHUQPHQWFKDQJHGWKHWREDFF WD[WRDORFDOWD[LWGHFLGHGQRWWRSURYLGH¿VFDOVXSSRUWIRU WRGRZQVL]HWKHSURMHFWVFDOH

7KHJRYHUQPHQWKRZHYHUGHFLGHGWRSURYLGHWKHFLW\ZLWKDQDGGLWLRQDO ELOOLRQZRQXSRQWKHUHTXHVWRIVRPHSROLWLFLDQVWRH[WHQG0HWUR/LQHIURP

Furthermore, an about one trillion won accumulated surplus was found after the DQQXDOVHWWOHPHQWRIDFFRXQWVLQ6SXUUHGE\WKLVWXUQRIHYHQWVWKHJRYHUQPHQW HVWDEOLVKHGDFRPSUHKHQVLYHWUDI¿FPDQDJHPHQWSODQWRUHVROYHWKHFRQJHVWLRQLQ WKHJUHDWHU6HRXODUHDDQGLQWKHORFDOPHWURSROLWDQFLWLHVDVZHOODVYDULRXVSROLFLHV WRVXSSRUWWKHORFDOJRYHUQPHQWV,QWKHSURFHVVWKHJRYHUQPHQWGHFLGHGWRDOORFDWH 400 billion won for the construction of subways and roads in the metropolitan cities while suggesting that it would finance up to 30% of the country's total subway FRQVWUXFWLRQFRVWHVWLPDWHGDWWULOOLRQZRQE\VHOHFWLYHO\GLVWULEXWLQJWKHPRQH\ WRWKHORFDOJRYHUQPHQWVEHJLQQLQJLQ

)ROORZLQJWKHDIRUHPHQWLRQHGGHFLVLRQV6HRXO&LW\FDPHXSZLWKD¿QDQFLQJSODQ LQZKLFKWKH6HRQJQDPVHFWLRQRI0HWUR/LQHZDVWREHHQWLUHO\¿QDQFHGE\WKH JRYHUQPHQWZKLOHWKHUHPDLQLQJ6HRXOVHFWLRQZDVWREH¿QDQFHGXSWRE\WKH JRYHUQPHQWZLWKWKHSD\PHQWWREHPDGHXSRQWKHFRPPHQFHPHQWRIWKHVHFRQG SKDVH6HRXO0HWURSURMHFW7KHFRVWRIWKLVSURMHFWKRZHYHUKDGEDOORRQHGQHDUO\ WZRIROGIURPWULOOLRQZRQLQZKHQWKHSURMHFWZDVSODQQHGWR WULOOLRQZRQE\ODWH7KHFRVWRYHUUXQZDVEODPHGRQYDULHGUHDVRQVVXFKDV LQÀDWLRQWKHLQFUHDVHRIWKHSXUFKDVHGUROOLQJVWRFNVWKHH[WHQVLRQRIWKHSODQQHG lines, the growing number of stations, the rising land price, the changing of the engineering method used, and the relocation of the buried stuff. As a result, the share RIWKH¿VFDOVXSSRUWGURSSHGIURPWKHLQLWLDOWR

7KHVKDUHRIWKHWRWDOVHOIILQDQFLQJE\WKHFLW\JUHZWRLQWKHHQGDVWKH EXGJHWWUDQVIHUUHGIURPWKHJHQHUDODFFRXQWMXPSHGZKLOHWKHEXUGHQFKDUJHDQG GHYHORSPHQWJDLQVIURPWKHKRXVLQJSURMHFWZDVQHZO\FRXQWHGLQWKHFLW\ VSURMHFW DFFRXQW$VDUHVXOWWKHVKDUHRIWKHERUURZHGIXQGVGURSSHGVLJQL¿FDQWO\FRPSDUHG WRWKDWLQWKH¿UVWSKDVH6HRXO0HWURSURMHFW

 Chapter 4  UDQVLW 405.1 (unit: billion won) HUQPHQWWXUQHG HODWHV7KLV VWKHFLW\LQWHQGHG DQFLDOPDQDJHPHQW KHPXQLFLSDOFRIIHUV WULOOLRQZRQE\  Subtotal 1,373.1Subtotal 5,032.6 1,393.9 2,060.7 Subtotal 1,420 2,335.7 Fiscal loans 244 Fiscal support 1,420 1,981.7 Other incomes 283 General account 1,266.1 3,951.5 Foreign bond issue 895 697.3 Development gains Urban railway bonds 298.9 1,323.4 Total 4,187 9,429 Special governmental loans 200 40 Special governmental loans 110 Budget of subway corporation 107 155 Category Budget Initial As of Late 1996 Burden charge of housing evelopmentBurden charge of housing 238

Financing structure of the second-phase Seoul Metro lines Seoul Metro the second-phase structure of 4-3> Financing

7KHSURMHFWZDV¿QDQFHGWKURXJKWKH%72PHWKRGZKHUH6HRXO0HWUR/LQHZDV SDUWO\¿QDQFHGE\WKHSULYDWHLQYHVWRUVLQWKHFRQVWUXFWLRQRIWKH¿UVWSKDVHWUDFNV and stations. The operator was endowed with a right to run the line for 30 years after the line's opening.

7KHSURMHFWEXGJHWRI0HWUR/LQHZDVWULOOLRQZRQZLWKELOOLRQZRQ LQYHVWHGIRUWKHFRQVWUXFWLRQRIWKH¿UVWSKDVHWUDFNVDQGVWDWLRQVDQGELOOLRQ ZRQLQYHVWHGIRUWKHDFTXLVLWLRQRIUROOLQJVWRFNVDVRI2IWKLVDPRXQWDWRWDO RIELOOLRQZRQZDVIXQGHGE\SULYDWHLQYHVWRUV7KHVKDUHRIHDFK¿QDQFLQJ VRXUFHZDVDVIROORZVIRU¿VFDOVXSSRUWIRUWKHPXQLFLSDODFFRXQWDQG IRUSULYDWHIXQGV0HDQZKLOHWKHSULYDWHLQYHVWRUVFRQVLVWHGRILQYHVWRUVLQWKH FRQVWUXFWLRQ  DQGLQYHVWRUVLQ¿QDQFLQJ  ZLWKWKHHTXLW\RI+\XQGDL 5RWHPWKHUROOLQJVWRFNPDQXIDFWXUHUEHLQJWKHKLJKHVW

2. Financing of the Local Urban Railway Projects

2.1 Financing of Busan Urban Railway

7KHWRWDOSURMHFWFRVWRI%XVDQ0HWUR/LQHZDVELOOLRQZRQ2IWKLVWKH ERUURZHGIXQGVDPRXQWHGWR ELOOLRQZRQ ZKLOHIRUHLJQORDQVDPRXQWHG WR ELOOLRQZRQ )LQDQFLQJIURPWKHFLW\ VRZQFRIIHUVZDVMXVW RIWKHSURMHFWFRVWZKLOHWKH¿VFDOVXSSRUWDPRXQWHGWR

$VWKHVKDUHRI¿VFDOVXSSRUWLQ%XVDQ0HWUR/LQHZDVMXVWWKHFLW\KDVWR VKRXOGHUDPDVVLYH¿VFDOEXUGHQ7KHJRYHUQPHQWHVWDEOLVKHG%XVDQ8UEDQ7UDQVLW $XWKRULW\WRUHVROYHWKLVTXDQGDU\DQGHQWUXVWHGWKHDXWKRULW\ZLWKWKHFRQVWUXFWLRQ DQGRSHUDWLRQRIWKH%XVDQ0HWUROLQHV)RUWKLVUHDVRQWKHDXWKRULW\WRRNOHDGHUVKLS

 Chapter 4  361.5 361.5 (unit: billion won) (unit: billion won) RI%XVDQ0HWUR LRQZRQILQDQFHG GVWDJHVHFWLRQRI URMHFWLQ Financing structure of Busan Metro Line 2 4-5> Financing structure of Busan Metro

Financing structure of Busan Metro Line 1 Metro 4-4> Financing structure of Busan

Financing structure of Busan-Gimhae Light Railway

(unit: billion won)

Total Private Fiscal Local Financing Type Project Others Funds Support Funds Cost As of the 2000 fixed price 1,367.1 1,126.4 1,126.4 1,126.4 361.5 (planned amount) As of the 2011 adjusted price (actual 491 518.2 518.2 518.2 - amount)

2.2 Financing of the Urban Railway Projects in Other Cities

$WRWDORIWULOOLRQZRQZDVLQYHVWHGLQWKH'DHJX0HWUR/LQHSURMHFW 7KHVKDUHRI¿VFDOVXSSRUWZDVWKDWRIWKHPXQLFLSDOIXQGVZDVDQG WKHERUURZHGIXQGVDPRXQWHGWR ELOOLRQZRQ $PRQJWKHORDQV ELOOLRQZRQZDV¿QDQFHGE\WKHLVVXHRIERQGVZKHUHDVELOOLRQZRQZDV ¿QDQFHGE\WKH¿VFDOORDQV$WRWDORIWULOOLRQZRQZDVLQYHVWHGLQWKH'DHJX 0HWUR/LQHSURMHFW7KHVKDUHRI¿VFDOVXSSRUWZDVWKDWRIWKHPXQLFLSDO IXQGVZDVDQGWKDWRIWKHORDQVZDV$PRQJWKHORDQVELOOLRQ ZRQZDV¿QDQFHGIURPWKH3XEOLF&DSLWDO0DQDJHPHQW)XQG , bigger than the 233.9 ELOOLRQZRQ¿QDQFHGWKURXJKWKHLVVXHRIERQGV 7KH,QFKHRQ0HWUR/LQHSURMHFWFRVWWULOOLRQZRQ7KHVKDUHRIILVFDO VXSSRUWZDV ELOOLRQZRQ WKDWRIWKHPXQLFLSDOIXQGVZDV  ELOOLRQZRQ DQGWKDWRIWKHORDQVZDV ELOOLRQZRQ 0HDQZKLOHWKH FRQVWUXFWLRQRIWKH6RQJGRH[WHQVLRQRI0HWUR/LQHFRVWELOOLRQZRQ2I

7) A public capital management fund established by the government to secure and provide the funds needed for public purposes, such as for fiscal loans, and to effectively manage the issue and repayment of bonds.

 Chapter 4 80 KDUHRIILVFDO HGDJDLQWR HUQPHQWSDLGWKH H$VLDQILQDQFLDO SURMHFWVLQ'DHJX DOIXQGVZDV QFHGE\PXQLFLSDO VWUXFWLRQRI0HWUR OOLRQZRQ WKHFLW\ 7KHLVVXHRIERQGV KHWRWDOFRVWKDGWR SOHWHWKHSURMHFWRQ XQWRI¿VFDOVXSSRUW 7KHVKDUHZDVWKDW HUWLPH,QWKHHDUO\ WKHGHYHORSPHQWRI DWDOORIWKHPVWDUWHG D\SURMHFWZLWK¿VFDO XSSRUWJUDQWHGWRWKH \E\UDLVLQJIXQGVDQG U W\SHSULYDWHOHDVLQJ DPRXQWWRSD\EDFNWKH 7KH*ZDQJMX0HWUR/LQHSURMHFWFRVWWULOOLRQZRQ7KHV 'DHMHRQ&LW\LQLWLDOO\SODQQHGWR¿QDQFHWKHFLW\ VXUEDQUDLOZ 7KHDPRXQWVRIWKH¿VFDOVXSSRUWSURYLGHGWRWKHXUEDQUDLOZD\ KLJKEHFDXVHWKHSURMHFWZDVH[HFXWHGLQFORVHDVVRFLDWLRQZLWK WKLVWKHVKDUHRI¿VFDOVXSSRUWZDV ELOOLRQZRQ  6RQJGR,QWHUQDWLRQDO&LW\$WRWDORIELOOLRQZRQZDV¿QD ZDVQRWHDV\HLWKHU7RWDFNOHWKH¿QDQFLDOJULGORFNDQGWRFRP VXEVLGLHVLQDQGWRVXEVLGLHVLQ)RUWKH¿VFDOV XUEDQUDLOZD\SURMHFWVFRQGXFWHGEHWZHHQDQGWKHJRY GLIIHUHQFHEHWZHHQRIWKHSURMHFWEXGJHWDQGWKHDFWXDODPR JLYHQEDFNLQWKRVH\HDUVVRWKDWWKHEHQH¿FLDULHVFDQXVHWKH funds whereas the share of borrowed funds, including the issue of subway bonds, bonds, the issue of subway funds, including the share of borrowed funds whereas ZDVURXJKO\ ELOOLRQZRQ  EH¿QDQFHGZLWKPXQLFLSDOIXQGVWKLVZDVGLI¿FXOWWRUHDOL]H WLPHWKHFLW\LQVWHDGDGRSWHGD%/7 EXLOGOHDVHDQGWUDQVIH about 30% (subsidies, 15%; fiscal loans, 1990s, the share of fiscal support was  EXWLWZDVFKDQJHGWRVXEVLGLHVLQ,WZDVFKDQJ principal and interest of the debt. VXSSRUWZDV WULOOLRQZRQ DQGWKDWRIWKHPXQLFLS KDGWREHDUDVLJQL¿FDQWO\KLJKFDSLWDOH[SHQGLWXUH railway station sphere sources, including the gains from the support, bonds, and other GHYHORSPHQWDQGIRUHLJQORDQV5LJKWDIWHUWKHVWDUWRIWKHFRQ FULVLVDQGOHVVWKDQH[SHFWHGORFDOWD[LQFRPHV:KLOHRIW DUUDQJHPHQWZKHUHWKHSURMHFWGHYHORSHUFRQVWUXFWVWKHIDFLOLW OHDVHVLWWR'DHMHRQ&LW\IRUDFHUWDLQSHULRG ,QFKHRQ*ZDQJMXDQG'DHMHRQDUHGLIIHUHQWGHVSLWHWKHIDFWWK LQWKHVEHFDXVHWKHJXLGHOLQHVIRU¿VFDOVXSSRUWYDULHGRY ELOOLRQZRQ $VWKHVKDUHRIORDQVZDV WUL /LQHKRZHYHUWKHFLW\ VILQDQFLQJHQGHDYRUVWXPEOHGXSRQWK

Financing structure of the urban railway projects in other cities

(unit: million won)

Daegu Incheon Gwangju Daejeon Financing Type Metro Line 1 Metro Line 2 Metro Line 1 Metro Line 1 Metro Line 1 Total 1,459.7 2,333 1,690 2,647 1,884.9 Fiscal support 383.6 1,132.7 593.6 1,326.6 948 Total 292.7 570.8 491.9 252.8 178.4 Municipal Transferred from the 272.9 513.3 399.5 funds general account Other incomes 19.8 57.5 92.4 Total 783.4 629.5 604.5 1,067.5 758.5 Fiscal loans 155 251.6 149 192.2 75.6 Borrowed Subway bonds 457.3 233.9 343.1 777.3 370.6 funds Bank loans 50 110 - 8 297.3 Others 121.1 285.6 112.4 90 15

3. Overcoming the Barriers

/DFNRI([SHULHQFHLQ8UEDQ5DLOZD\&RQVWUXFWLRQ

$VWKHFRQVWUXFWLRQRIDQXUEDQUDLOZD\LVDQLQWHJUDWHGWHFKQRORJ\SURMHFWWKDW LQYROYHVVXFKYDULHGVHFWRUVDVFLYLOHQJLQHHULQJFRQVWUXFWLRQHOHFWULFLW\VLJQDOLQJ communications, and rolling stocks, specialized knowledge on each area is essential. For a country that lacks experience in the design and construction of urban railways, it is not an easy task. As the subways were mostly built underground, the precise FRQVWUXFWLRQZDVFUXFLDODVPLVWDNHVDUHLUUHYRFDEOHRQFHPDGH

'XULQJWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQHWKHHQJLQHHUVVRPHWLPHVPHW tricky zones riddled with complicated technological challenges as they had to dig GHHSDORQJWKHFLW\FHQWHUSDFNHGZLWKEXLOGLQJVDQGURDGWUDI¿F$QH[DFWLRQDQG DFRYHUXSKDGWREHGRQHLQDSKDVHGPDQQHUWRSURWHFWWKHEXLOGLQJVDQGFXOWXUDO DVVHWVDORQJWKHURDGVWRHQVXUHVDIHW\ZKHQGLJJLQJDFURVVWKHVWUHDPVDQGULYHUV and to ease the roadway congestion. To keep the key urban functions working, the FRQVWUXFWLRQKDGWREHH[HFXWHGZLWKRXWLQWHUIHULQJZLWKWKHXWLOLW\SLSHVDQGYDULRXV

81 Chapter 4 82 QWHDPRI DVHPSOR\HG HULQJNQRZ HPHWKRGZDV HFKDOOHQJLQJ WKHUHFODLPHG XLSPHQWZHUH WKHWUDLQVDQG HUJURXQGPDOOV QHDQGIRU FUDFNVDVKLHOG WKHNQRZOHGJH XO0HWUR/LQH GXFHWKHދދVOXUU\ GWRGRWKHWDVN IWKHORFDOKHDY\ XQWU\ -DSDQHVHOLPLWHG EZD\WKHPVHOYHV WKHHQJLQHHUVZKR IWKH6RXWK.RUHDQ \HGLQOD\LQJGRZQ JDPDVVLYHDPRXQW H[FHSWIRUWKHKLJK \WKH6RXWK.RUHDQ ZDOOPHWKRGތތGXULQJWKHH[FDYDWLRQIRUWKH¿UVWWLPHLQWKHFR DQGSDFNHGEXLOGLQJVLQWKHFLW\FHQWHU7RSUHYHQWFDYHLQRU JURXQGORFDWHGXQGHUWKHVHDZDWHUPDNLQJLWQHFHVVDU\WRLQWUR instance, was particularly challenging as many buildings were cramped in a many buildings were cramped in a instance, was particularly challenging as QDUURZVSDFHDQGDVYDULRXVXWLOLW\SLSHVFDEOHVDQGRWKHUHT to address the problem. EXULHGXQGHUJURXQG)XUWKHUPRUHWKHH[FDYDWLRQIURPWKHVXUIDF QRWDSSOLFDEOHDVWKHFRQVWUXFWLRQZRUNHUVKDGWRGLJXQGHU6HR DQG1$70DQDGYDQFHGWXQQHOERULQJWHFKQLTXHDWWKHWLPHZ 7KH-DSDQHVHUHVHDUFKWHDPRULJLQDOO\FRQVLGHUHGVHQGLQJLWVRZ 'XULQJWKHHDUWKZRUNRIWKHFRQVWUXFWLRQWKHHQJLQHHUVPHWVRP  7KHWXQQHOVRI*ZDQJMX0HWUR/LQHKDGWRSDVVEHORZWKHXQG  7KHFRQVWUXFWLRQLQWKHFLW\FHQWHUVHFWLRQRI6HRXO0HWUR/L  ,QWKHFDVHRI%XVDQ0HWURWKHHQJLQHHUVKDGWRGLJXQGHU cables buried underneath. cables HQJLQHHUVWR6HRXOIRUWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQHL VWDIIKDGQRDGHTXDWHWHFKQRORJLFDOSURZHVVWRFRQVWUXFWWKHVX ,QWKHHQGKRZHYHUPXFKRIWKHFRQVWUXFWLRQDQGHQJLQHHULQJ WHFKDUHDVOLNHUROOLQJVWRFNVDQGVLJQDOLQJZDVFDUULHGRXWE HQJLQHHUVDUPHGZLWKWKHLURZQWHFKQRORJ\ZLWKWKHUROHRIWKH WRWKHVXSHUYLVLRQRIWKHSURMHFW7KHVDPHVSHFL¿FDWLRQVHPSOR WKHFRQYHQWLRQDOFDWHQDU\ZLUHVZHUHXVHGDQGLQWKHSURFHVV IRUPHUO\ZRUNHGDW1DWLRQDO5DLOURDG$GPLQLVWUDWLRQZHUHLQYLWH 0HDQZKLOHWKHVXEZD\VXSHUVWUXFWXUHZDVGHVLJQHGE\UHO\LQJRQ DERXWUDLOZD\VURDGVDQGVWUXFWXUDOHQJLQHHULQJ(YHQWKRXJK supplies were were imported, all the other construction operating equipment stage, the entire construction From the planning to the design procured domestically. DQGHQJLQHHULQJZDVFDUULHGRXWXVLQJGRPHVWLFHTXLSPHQWVDYLQ RIIRUHLJQFXUUHQF\ZKLOHDWWKHVDPHWLPHLQFUHDVLQJWKHXVHR construction equipment. sections, but they went ahead with these and successfully completed the construction sections, but they went ahead with these E\HPSOR\LQJVRPHFXWWLQJHGJHWHFKQRORJLHVRUKRPHJURZQHQJLQH KRZ6RPHNH\HQJLQHHULQJH[DPSOHVDUHDVIROORZV WXQQHOERULQJPDFKLQHDUPHGZLWKDPUDGLXVVKLHOGWKHODUJHVWLQWKH 6RXWK.RUHDQFRQVWUXFWLRQKLVWRU\ZDVXVHG  7KH

Engineering techniques employed in the construction of Seoul Metro Line 9 Express Bus Terminal Station

3.2 Delay in the Schedule Due to Civil Complaints

7KHFRQVWUXFWLRQRIDVXEZD\WRRN¿YHWRVHYHQ\HDUVVHWWLQJRIIDEDUUDJHRIFLYLO complaints. In the early stage of the construction, the complaints were generally RQWKHLVVXHRISULYDWHLQWHUHVWVVXFKDVWKHUHTXHVWIRUDQH[WHQVLRQRUFKDQJHRI

83 Chapter 4 84 PSODLQWVIRU WKHLVVXHVE\ KDVWKHVDIHW\ PDLQO\LQYROYHG QGORFDWLRQRID OGDPDJHDVZHOO GHUJURXQGZDWHU QWLDOGHWHULRUDWLRQ KDWWKHORFDWLRQRI HTXHVWIRUDFKDQJH OOVFDOHFRQVWUXFWLRQ TXDNHDQGGXVWDQG WKHSRVLWLYHLPSDFW QHDUWKHUHVLGHQWLDO WKHSODQQHGH[LWVEH WLWE\SRLQWLQJWRLWV QWKHEXLOGLQJRUWKH FWRQWKHHI¿FLHQF\RI DPDJHWRWKHSULYDWHO\ KW DQGYHQWVWKHFRPSODLQWV A closer look at the data would show that most of the complaints were simple simple show that most of the complaints were closer look at the data would A 7KHFRQVWUXFWLRQRI6HRXO0HWUR/LQHVDZDERXWFLYLOFR 7KHORFDOJRYHUQPHQWVRXJKWWRPDNHLWVFRQVWLWXHQWVXQGHUVWDQG RQHVSRVHGPRVWO\E\LQGLYLGXDOV,IWKH\FRQFHUQHGWKHURXWHD damage to the businesses. There was also opposition to the expropriation of land or There was also opposition damage to the businesses. FRQGRPLQLXPOHDVHKROG,QWKHFRPSOHWLRQVWDJHWKHFRPSODLQWV GRZQULJKWRSSRVLWLRQWRWKHFRQVWUXFWLRQRIYHQWVRUDGHPDQGW WKHYHQWVEHFKDQJHGWKDWDGGLWLRQDOH[LWVEHFUHDWHGRUWKDW UHORFDWHGRUWKDWFHUWDLQFRQYHQLHQWIDFLOLWLHVEHLQVWDOOHG VWDWLRQKRZHYHUDVZHOODVYDULRXVIDFLOLWLHVVXFKDVH[LWV VWDJHKRZHYHUWKHFRPSODLQWVVSDQQHGDYDULHW\RILVVXHVVXF WKHFRPSHQVDWLRQIRUWKHGHWHULRUDWLQJWUDI¿FÀRZWKHFUDFNVL SHUVLVWHGRIWHQOHDGLQJWRDIRUPDOSHWLWLRQRUDFRXUWURRP¿J the lines and stations, or the demand that the construction method be changed to to be changed method construction that the the demand or and stations, the lines WXQQHOLQJIURPH[FDYDWLRQIURPDERYHWKHVXUIDFH'XULQJWKHIX PHDVXUHVWKHHQYLURQPHQWDOSUHFDXWLRQVDJDLQVWWKHQRLVHWKH instance, but the number tapers down to 5,400 if the repeat complaints are counted instance, but the number tapers down to RXW7KHNH\FRPSODLQWVZHUHPRVWO\DERXWZRUULHVRYHUWKHSRWH RIWKHTXDOLW\RIOLIHGXULQJDQGDIWHUWKHFRQVWUXFWLRQDQGG WKH¿QLVKHGOLQHV owned property, as the subway had to go under the apartment complexes and the apartment complexes and as the subway had to go under owned property, UHVLGHQWLDODUHDVRUWKHHOHYDWHGUDLOWUDFNVVRPHWLPHVSDVVHG the repair of the damaged buildings or leading to complaints and requests for There were also plenty of waters. for compensation for the dried underground FRPSODLQWVDERXWLQDGHTXDWHVDIHW\SUHFDXWLRQVDQGHQYLURQPHQWD urban railway facilities. as those for or against the construction of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sleeper pads and soundproof walls.

In 1992, the legal ground of the compensation for the right of underground usage was secured. The acquisition of the land was in principle negotiated through a FRPSHQVDWLRQVFKHPHEXWLIWKHODQGORUGUHMHFWHGWKHRIIHUWKHFRQVWUXFWLRQZHQW DKHDGDIWHUDQDUELWUDWHGH[SURSULDWLRQRIWKHODQG7KDQNVWRWKHVHHIIRUWVRI WKHFRPSODLQWVSRVHGGXULQJWKHFRQVWUXFWLRQRIWKHVHFRQGSKDVHPHWUROLQHVZHUH DFFHSWHGZKLOHRIWKHPZHUHUHVROYHGWKURXJKQHJRWLDWLRQVDQGSHUVXDVLRQ

3.3 Accidents Due to Negligence During the Construction

7KHHDUO\VWDJHRIWKHFRQVWUXFWLRQRIWKHILUVWSKDVHPHWUROLQHVVDZQRWDIHZ safety accidents. A total of 133 workers were killed on the construction sites, especially within two to three years after the groundbreaking, with the cause of WKHGHDWKVYDU\LQJIURPHOHFWULFVKRFNDQGIDOOLQJURFNVWRODQGVOLGHV7KHIDOOLQJ rocks and landslide, representing of the more serious accidents, were caused by the inadequate safety precautions or the lack of preliminary reinforcement during the H[FDYDWLRQRIWKHHDUWKRUWKHEODVWLQJRIURFNV%HVLGHVFDXVLQJKXPDQDQGPDWHULDO damages, it also delayed the construction schedule and added to the cost of the SURMHFW7KHVHFRQGSKDVH6HRXO0HWURFRQVWUXFWLRQVDZVLPLODUW\SHVRIDFFLGHQWV ,QWKHFDVHRI6HRXO0HWUR/LQHIRULQVWDQFHDWRWDORIZRUNHUVZHUHNLOOHG GXULQJWKHVHYHQ\HDUFRQVWUXFWLRQRIWKHPZLWKLQWKUHHWRIRXU\HDUVZLWKWKH FDXVHRIGHDWKYDU\LQJIURPIDOOVIDOOLQJURFNVDQGGHEULVDQGDFFLGHQWVLQYROYLQJ the construction equipment.

After a series of accidents, the contractors took the responsibility for the safety PDQDJHPHQW7KHQHZO\UHLQIRUFHGVDIHW\PDQDJHPHQWWHDPLQWHQVL¿HGWKHVDIHW\ SUHFDXWLRQVDQGWKHFRQVWUXFWLRQZHQWDKHDGZLWKWKHދދVDIHW\¿UVWތތPLQGVHW7KH JLUGHUVVXSSRUWLQJWKHXWLOLW\SLSHVDQGFDEOHVZHUHH[WHQVLYHO\UHLQIRUFHGZKLOHWKH GHWRQDWLRQSURFHVVZDVVWDQGDUGL]HGDQGWKHEORFNW\SHH[FDYDWLRQWHFKQLTXHZDV

85 Chapter 4 86 /LQHZDV QWKHFKRLFHRI ZKHUHWKHWZR WKHDEVHQFHRID WKHDOWHUQDWHDQG LWDQUDLOZD\VYLD VLWHZRUNHUVZHUH XWLQWHUPVRIWKH URPLVHDQ;W\SH KD9GLUHFW HLQVXI¿FLHQWVDIHW\ YROWDJHEHFKRVHQLI QWIURP0HWUR/LQH WFXUUHQWKRZHYHULV GLUHFWFXUUHQWV\VWHP PHQWLVVXHGDQRUGHU FLW\5DLOZD\RI¿FLDOV DQGGLUHFWFXUUHQWDUH RQRQÀDPPDEOHVDQG In the meantime, a tragic fire set off in the train car by an arsonist killed 192 arsonist killed 192 in the train car by an set off a tragic fire In the meantime, 6HRXO0HWUR/LQHDQGDOVRIDFHGWKHVDPHSUREOHP*ZDFKHRQ :KLOH6HRXO0HWUR/LQHZDVEHLQJFRQVWUXFWHGGHEDWHVUDJHGR IRUWKHLQWHULRUPDWHULDOVRIXUEDQDQGPHWURSROLWDQUDLOFDUVW VWDQGDUGVRIWKHWUDLQFDUV)ROORZLQJWKHGLVDVWHUWKHJRYHUQ the operation of urban standards of facilities, train cars, and tightened the safety in the operation of the the number of safety accidents railways, markedly reducing urban railways. VDIHW\PDQDJHPHQWV\VWHPLQWKHFRXQWU\ VXUEDQUDLOZD\VDQGWK 3.4 Electric System Incompatible with the Metropolitan Railway Incompatible with the Metropolitan 3.4 Electric System SDVVHQJHUVDQGLQMXUHGLQ'HDJX0HWUR/LQHKLJKOLJKWLQJ educated about safety precautions and took tests, strengthening their safety mindset. their safety and took tests, strengthening safety precautions educated about HPSOR\HGWRHQVXUHÀDZOHVVFRQVWUXFWLRQ7KHWHFKQLFLDQVDQGRQ current system in the first place, eliminating the hurdle in linking it directly with current system in the first place, eliminating the hurdle in linking it directly with 6HRXO0HWUR/LQH 6HRXO0HWUR/LQHKDGWREHFKDQJHGWREHFRPSDWLEOHZLWKERWK on the inertial momentum when running direct current, while the trains had to rely of Seoul and Cheongryangri Station, on the dead section installed on both ends ZKHUH0HWUR/LQHDQGWKHPHWURSROLWDQUDLODUHOLQNHG RULJLQDOO\GHVLJQHGWREHFRPSDWLEOHZLWK6HRXO0HWUR/LQHE $VWKHRSHUDWRUVRIERWKOLQHVIDLOHGWRFRPHXSZLWKDFRPS FURVVLQJWXQQHOZDVEXLOWLQWKH1DPWDHU\HRQJ6HRQEDZLVHFWLRQ OLQHVDUHOLQNHGZKLOHWUDLQVHWVFRPSDWLEOHWRERWKDOWHUQDWH UXQQLQJDORQJWKHWZROLQHV,OVDQ/LQHZDVEXLOWKRZHYHUZLW SUHYDLOHG$FFRUGLQJO\WKHUDLOFDUVUXQQLQJDORQJWKHPHWURSRO WUDLQRSHUDWLRQPRGHDQGHOHFWULFFXUUHQWLWZDVTXLWHGLIIHUH electric system. As the trains running on the metropolitan railways were powered by electric system. D9DOWHUQDWHFXUUHQWLWZDVUHFRPPHQGHGWKDWWKHVDPH FRXOGQRWDJUHHRQWKHEHVWV\VWHPEXWLQWKHHQGWKH9 VXEZD\FDUVZHUHWRDOVRUXQRQWKRVHWUDFNV7KH9GLUHF NQRZQWREHRSWLPDOIRUWKHUDLOFDUV UXQQLQJWUDFNVLQVLGHWKH 6RDVQRWWRUHSHDWWKHPLVWDNHRIKDYLQJLQYHVWHGH[FHVVLYHO\LQUDLOFDUVWKDWFDQ UXQRQERWKDOWHUQDWHDQGGLUHFWFXUUHQWVWKHVHFRQGSKDVHOLQHVZHUHGHVLJQHGIURP the outset without any consideration for a potential connection with the metropolitan railways. The different architecture of both systems led to an incompatibility between the rail cars running on the metropolitan railways and those running on WKHVHFRQGSKDVH6HRXO0HWUROLQHV7ROLQNWKHWZRVHSDUDWHUDLOZD\V\VWHPVWKH construction of costly extension line is necessary.

3.5 Other Barriers

As the superstructure of the subways is made mainly of reinforced concrete, WKHFRQVWUXFWLRQLVLPSRVVLEOHZLWKRXWWKHDGHTXDWHVXSSO\RIUHEDUDQGUHDG\ mixed concrete. About a couple of years after the start of the construction of Seoul 0HWUR/LQHLQWKHSULFHRIUHEDUMXPSHGGXHWRWKHVKRUWDJHRIVFUDSLURQLQ DQGWKHVXEVHTXHQWRLOVKRFNLQ:KHQHYHUWKHUHZDVDSULFHKLNHWKH FRQVWUXFWLRQZDVVXVSHQGHGGXHWRWKHVKRUWDJHRIUHEDU7KHJRYHUQPHQWLQWHUYHQHG WRUHVROYHWKHJULGORFNSHUVXDGLQJWKHVXSSOLHUVYLD3XEOLF3URFXUHPHQW6HUYLFHWR SURYLGHWKHUHEDU¿UVWDQGWREHSDLGWKHELOOVODWHUDFFRUGLQJWRWKHSULFHJXLGHOLQH QHJRWLDWHGWKURXJKJRYHUQPHQWDUELWUDWLRQ7KDQNVWRWKLVH[WUDRUGLQDU\PHDVXUHWKH construction could go ahead without a break.

0HDQZKLOHWRSURWHFWWKHFXOWXUDODVVHWVIURPWKHYLEUDWLRQFDXVHGE\WKH construction and operation of urban railways, some special engineering techniques WKDWGRQRWJHQHUDWHYLEUDWLRQVZHUHXVHGIRUWKHFRQVWUXFWLRQQHDU1DPGDHPXQ DQG'RQJGDHPXQ$VWKHVWDWLRQZDVEXLOWQHDU'RQJGDHPXQDQH[WUDRUGLQDU\ SUHFDXWLRQZDVUHTXLUHGWRSURWHFWWKHYDOXDEOHFXOWXUDODVVHW1RQYLEUDWLRQ H[SORVLYHVZHUHXVHGIRUWKHFRQVWUXFWLRQZKLOHSURWHFWLYHGHYLFHVZHUHLQVWDOOHG WREORFNRUUHGXFHWKHYLEUDWLRQIURPWKHGHWRQDWLRQ0RUHRYHUYLEUDWLRQSURRI IDFLOLWLHVZHUHLQVWDOOHGLQWKHVWDWLRQVWRSUHYHQWYLEUDWLRQGXULQJWKHUDLOZD\ RSHUDWLRQDQGYLEUDWLRQSURRIZDOOVZHUHEXLOWRXWVLGHWKHVWDWLRQV'XULQJWKH construction, the displacement of the constructed structures and the earth pressure DQGXQGHUJURXQGZDWHUOHYHOZHUHFRQVWDQWO\JDXJHGDQGPRQLWRUHG

 Chapter 5 88 WRUHVROYH PRSHUDWLRQ QLVXQGHUZD\ RUSRUDWLRQWZR ULYDWHLQYHVWRUV D\LVVWLOODWWUDFWLQJ  WKHFRQVWUXFWLRQRI WUDLQV6HRXO0HWUR QWKHOLQHZKLFKDUH WKHFRXQWU\DVRIODWH DQG0HWUR/LQH HJRYHUQPHQWPHWUR . 5 6RXWK.RUHDKDVFRQVWDQWO\EXLOWXUEDQUDLOZD\VVLQFHWKHV Seoul, a city with 10 million people, has nine metro lines in operation, adding up Seoul, a city with 10 million people, has 1.1 Urban Railways in Operation 1.1 Urban Railways 1. Construction of a World-Class Urban Railway Infrastructure of a World-Class Urban Railway 1. Construction Implications for the Future Projects Future for the Implications Results of the Urban Railway Development and and Development Railway of the Urban Results Chapter QDUURZHUDQGVKRUWHUWKDQWKHSUHYDOHQWODUJHWUDLQV0HDQZKLOH DNPH[WHQVLRQRI6HRXO0HWUR/LQHWR%XFKHRQDQG,QFKHR the problems facing the urban mass transits resulting from the country's rapid resulting from the country's rapid the problems facing the urban mass transits LQGXVWULDOL]DWLRQDQGXUEDQL]DWLRQ7KDQNVWRWKHHIIRUWVRIWK /LQHZKLFKZDVRSHQHGWRWKHSXEOLFLQZDVIXQGHGE\S and acquisition of rolling stocks. Currently with regard to the construction of stations EHLQJUXQE\DSULYDWHRSHUDWRUPLGVL]HGWUDLQVDUHUXQQLQJR OLQHVWRWDOLQJNPDUHFXUUHQWO\XQGHURSHUDWLRQDOORYHU (QYLURQPHQWIULHQGO\DQGHQHUJ\HI¿FLHQWWKHXUEDQUDLOZ UHVSHFWLYHO\7KHUDLOFDUVUXQQLQJRQWKHVHOLQHVDUHPLGVL]HG WRNP6HRXO0HWURDQG6HRXO0HWURSROLWDQ5DSLG7UDQVLW& people's attention. The country has kept expanding its urban railway network has kept expanding its urban railway network The country people's attention. E\LQWURGXFLQJDGHTXDWHUDLOZD\V\VWHPVWKDWFDQDFKLHYHPD[LPX HI¿FLHQF\ ORFDOFRUSRUDWLRQVFRQWUROOHGE\WKHFLW\RSHUDWH0HWUR/LQH DORQJZLWKWKHOLJKWUDLOZD\SURMHFWEHWZHHQ:RRXLDQG6KLQVHRO %XVDQDFLW\ZLWKPLOOLRQSHRSOHKDVIRXUOLQHVLQRSHUDWLRQDGGLQJXSWR NP$OOWKHOLQHVZHUH¿QDQFHGE\¿VFDOVXSSRUWDQGDUHEHLQJRSHUDWHGE\ %XVDQ7UDQVSRUWDWLRQ&RUSRUDWLRQDQXPEUHOODORFDOFRUSRUDWLRQRIWKHFLW\0LG

South Korean urban railways in operation as of late 2011

Total No. of Type of City Operator Line Length Route Stations Rolling Stocks (Φ) Total 19 571.6 554 - - - Line 1 7.8 10 Cheongryangri Large

Seoul Metro Line 2 60.2 50 Seongsu-Seongsu 〃 Line 3 38.2 34 Jichuk-Ogeum 〃 Danggogae- Line 4 31.7 26 〃 Namtaeryeong Banghwa-Sangil, Seoul: Line 5 52.3 51 〃 9 lines Macheon Eungam- Seoul Metropolitan Line 6 35.1 38 〃 Corp. Bonghwasan Line 7 46.9 42 Jangam-Onsu 〃 Line 8 17.7 17 Amsa-Moran 〃 Gaehwa- Mid-sized Seoul Metro Line 9 Line 9 27.0 25 Shinnonhyeon train Subtotal 316.9 293 Nopodong- Mid-sized Line 1 32.5 34 Shingpyeong train Busan Line 2 45.2 43 Jangsan- 〃 Transportation Corporation Line 3 18.1 17 Daejeo-Suyeong 〃 Busan: Rubber- Line 4 12.0 14 Minam-Anpyeong 5 lines wheeled AGT Busan- Steel- Busan-Gimhae Light Gimhae 22.6 21 Sasang-Samgye wheeled Rail Transit Co., Ltd. Light Rail AGT Subtotal 130.4 129 Mid-sized Daegu Line 1 25.9 30 Daegok-Anshim train Daegu: Metropolitan Transit 2 lines Corporation Line 2 28.0 26 Munyang-Sawol 〃 Subtotal 53.9 56 Gyeyang-Songdo Incheon Transit Mid-sized Incheon Line 1 29.4 29 International Corporation train Business District Gwangju Metropolitan Nokdong- Gwangju Line 1 20.5 20 〃 Transit Corporation Pyeongdong Daejeon Metropolitan Daejeon Line 1 20.5 22 Panam-Banseok 〃 Transit Corporation

89 Chapter 5 90 HVWKH *LPKDHOLJKW SROLWDQ7UDQVLW /LQWKHJUHDWHU DQGZDVEXLOW 0LGVL]HGWUDLQV HFLW\0LGVL]HG LRQDGGLQJXSWR HQHGLQWKH 7*WUDLQVUXQQLQJ QG'HDMHRQDFLW\ FNRI0HWUR/LQH ZHUHEXLOW¿QDQFHG UDFN,QFKHRQ0HWUR EHLQJUXQE\'DHJX IWKRVHVWLSXODWHGE\ NP FXUUHQWO\XQGHU O\GHYHORSHGUXEEHU I¿FRIPRUHWKDQWZR DQJHWDSHUVRQWRWKH of 24.86 million as of 2010. ,QFKHRQDFLW\ZLWKPLOOLRQSHRSOHKDVRQHOLQH NP 'DHJXDFLW\ZLWKPLOOLRQSHRSOHKDVWZROLQHVLQRSHUDW 7KH6SHFLDO/DZRQ0HWURSROLWDQ7UDQVSRUWDWLRQ0DQDJHPHQWGHILQ 8) The greater Seoul area encompasses Seoul-si, Incheon-si and Gyeonggi-do, with a combined population 1.2 Metropolitan Railways in Operation 1.2 Metropolitan ZLWKPLOOLRQSHRSOHKDYHDNPOLQHUHVSHFWLYHO\DQG E\ILVFDOVXSSRUW7KHWZROLQHVDUHEHLQJUXQE\*ZDQJMX0HWUR &RUSRUDWLRQDQG'DHMHRQ0HWURSROLWDQ&RUSRUDWLRQUHVSHFWLYHO\ are running on the two lines. FRQVWUXFWLRQZLOOKDYHDW\SHRIPRQRUDLOWUDFN RQDNPWUDFN*ZDQJMXDFLW\ZLWKPLOOLRQSHRSOHD VL]HGWUDLQVDUHUXQQLQJRQ0HWUR/LQHWRZKHUHDVWKHORFDO ZKHHOHG$*7 DXWRJXLGHGWUDQVLW WUDLQVDUHUXQQLQJRQWKHWUD 0HWURSROLWDQ7UDQVLW&RUSRUDWLRQDQXPEUHOODFRUSRUDWLRQRIWK WUDLQVDUHUXQQLQJRQWKHWUDFNZKLOH'DHJX0HWUR/LQH  ¿QDQFHGE\¿VFDOVXSSRUW0LGVL]HGWUDLQVDUHUXQQLQJRQWKHW /LQHFXUUHQWO\XQGHUFRQVWUXFWLRQZLOOKDYHVWHHOZKHHOHG$ ZKLFKRSHQHGLQ2QWKHRWKHUKDQGWKHNPORQJ%XVDQ VWHHOZKHHOHG$*7WUDLQVDUHUXQQLQJRQWKHWUDFN NP%RWKOLQHVZHUHEXLOW¿QDQFHGE\¿VFDOVXSSRUWDQGLV UDLOZD\ZDVFRQVWUXFWHGZLWKIXQGLQJIURPSULYDWHLQYHVWRUV2S PHWURSROLWDQUDLOZD\DVDUDLOZD\WKDWGHDOVZLWKWKHGDLO\WUD railway The metropolitan them together. metropolitan cities or a railway that links LVDOVRGH¿QHGEDVHGRQLWVFDSDELOLW\DWUDQVSRUWPRGHWKDWF at the scheduled speed of 50 km/h and within a center of a central city in one hour, NPUDGLXV7KHPHWURSROLWDQUDLOZD\VEHLQJRSHUDWHGE\.25$, 6HRXODUHDKRZHYHUDUHDOVRLQFOXGHGLQWKHFDWHJRU\RQWRSR the law. 7ZHOYHPHWURSROLWDQOLQHVWRWDOLQJNPDUHFXUUHQWO\LQRSHUDWLRQLQWKH greater Seoul area. $PRQJWKHPWHQOLQHVWRWDOLQJNPDUHEHLQJUXQE\ .25$,/DQG,QFKHRQ,QWHUQDWLRQDO$LUSRUW5DLOZD\ NP LVEHLQJUXQE\ .25$,/$LUSRUW5DLOURDG&R/WG1HZ%XQGDQJ/LQHZKLFKZDVFRQVWUXFWHGDQG IXQGHGE\SULYDWHLQYHVWRUVKDVEHHQUXQE\DSULYDWHRSHUDWRUVLQFHLWVRSHQLQJLQ 2011.

$YDULHW\RIVLJQDOLQJV\VWHPVDUHLQSODFHIRUWKHRSHUDWLRQRIWKHPHWURSROLWDQ UDLOZD\V)RUWKHIRXUWUDFNHOHFWULFPHWURSROLWDQUDLOZD\VFRQYHUWHGIURPWKH FRQYHQWLRQDOUDLOVWKH$76 DXWRPDWLFWUDLQVWRS V\VWHPZDVLQVWDOOHGDORQJWKH track to stop the trains in an emergency. Besides ATS, the ATP (automatic train SURWHFWLRQ V\VWHPZDVLQVWDOOHGLQ*\HRQJEXDQG*\HRQJFKXQ/LQHWRSURWHFW WKHWUDLQV,OVDQDQG*ZDFKHRQ/LQHKRZHYHUZKLFKDUHOLQNHGZLWKWKH6HRXO

Metropolitan railways in operation as of late 2011

Total No. of Signaling Line Operator Length Route Stations System (Φ)

Total 554.2 215 Seoul-Cheonan Gyeongbu (Janghang) Line 122.9 45 ATP (Shinchang) Gyeongin Line 27.0 20 Guro-Incheon ATS Soyosan- Gyeongwon Line 42.9 24 Cheongryangri 〃 (underground station) Joongang Line 71.2 24 Yongsan-Yongmun 〃 26.0 13 Oido-Geumjeong 〃 KORAIL Namtaeryeong- Gwancheon Line 14.4 8 ATC Geumjeong Bundang Line 27.7 20 Seolleung-Bojeong 〃 Ilsan Line 19.2 10 Jichuk-Daehwa 〃 Seoul-DMC- 46.3 18 ATS Munsan Sangbong- Gyeongchun Line 81.3 18 ATP KORAIL Airport Seoul Station- Airport Railway 58.0 9 ATO Railroad Incheon Int'l Airport Co., Ltd. Neotrans New Bundang Line 17.3 6 Gangnam-Jeongja CBTC Co., Ltd.

91 Chapter 5 92 WDQ5DSLG WKHNPORQJ WHQFDUWUDLQVHWV WKDWRIWKHILUVW Z%XQGDQJ/LQH H$72 DXWRPDWLF EXWVWLOOWUDQVSRUWV RQQHFWHGZLWK,OVDQ SDVVHQJHUVSHUNP HQJHUVSHUNPEHLQJ H0HWUR/LQHWKH FRPSDUHGWRWKHWRWDO KRXUVVXSSO\LQJWKH $7& DXWRPDWLFWUDLQ 0HWUR/LQHRSHUDWHV RQWKHWUDFNDWWR UXQQLQJRQWKHWUDFNDW DXVHWKHOLQHLVGLUHFWO\ WRPDWLFDOO\7KH&%7& Transportation 7KHVHFRQGSKDVH6HRXO0HWUROLQHVRSHUDWHGE\6HRXO0HWURSROL 7KH¿UVWSKDVH6HRXO0HWUROLQHVRSHUDWHGE\6HRXO0HWURKDYH 0HWUR/LQHWUDQVSRUWVRYHUWZRPLOOLRQSDVVHQJHUVDGD\DORQJ 0HWUR/LQHDSULYDWHO\IXQGHGOLQHKDVIRXUFDUWUDLQVHWV 2.1 Urban Railways in Operation 2.1 Urban Railways 6HRXO0HWUROLQHVLQRSHUDWLRQ 2. of the Urban-railway-centered Establishment FRQWURO V\VWHPZKLOHWKHDLUSRUWUDLOZD\ZDVHTXLSSHGZLWKWK 0HWUROLQHVZHUHIXUWKHUXSJUDGHGZLWKWKHLQVWDOODWLRQRIWKH WUDLQRSHUDWLRQ V\VWHPZKLFKHQDEOHVWKHWUDLQVWRRSHUDWHDX FRPPXQLFDWLRQEDVHGWUDLQFRQWURO V\VWHPZDVLQWURGXFHGWR1H the remotely operate the control center to The system allows in 2011. which opened WUDLQVHOLPLQDWLQJWKHQHHGIRUORFRPRWLYHHQJLQHHUV 7UDQVLW&RUSRUDWLRQKDYHVL[WRHLJKWFDUWUDLQVHWVUXQQLQJ PLQLQWHUYDOVGXULQJWKHSHDNKRXUV7KHQXPEHURIGDLO\SDVV PLQLQWHUYDOVGXULQJWKHSHDNKRXUV8QOLNHWKHRWKHUOLQHV UXQQLQJRQWKHWUDFNDWWRPLQLQWHUYDOVGXULQJWKHSHDN in the country. transportation capacity largest WUDFNWKHODUJHVWQXPEHURISDVVHQJHUVFDUULHGE\DVLQJOHOLQ ¿UVWXUEDQUDLOZD\LQWKHFRXQWU\KDVRQO\DNPORQJWUDFN GDLO\SDVVHQJHUVSHUNPWKHODUJHVWLQWKHFRXQWU\EHF OLQNHGZLWKWKHPHWURSROLWDQUDLOZD\V0HWUR/LQHDQGDUHF DQG*ZDFKHRQ/LQHUHVSHFWLYHO\WUDQVSRUWLQJRYHUGDLO\ FDUULHGE\HDFKOLQHLVEHWZHHQDQGVPDOOHUWKDQ SKDVH6HRXO0HWUROLQHV7KHUHDVRQWKDWWKHQXPEHULVVPDOOHU and are not linked with the metropolitan length is that the lines detour frequently railways.

Seoul Metro lines in operation as of late 2010

Seoul Metropolitan Rapid Transit Seoul Metro Seoul Metro Category Total Corporation Line 9 Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 Line 7 Line 8 Line 9 Seoul Dang- Station Seongsu Jichuk gogae Banghwa Eungam Jangam Amsan Gaehwa Route 9 Lines ------Cheong- Seongsu Ogeum Namtae- Sangildong Bong- Onsu Moran Shin-nonhyeon ryangri ryeong Macheon hwasan Local: 27.0 Distance (Φ) 316.9 7.8 60.2 38.2 31.7 52.3 35.1 46.9 17.7 Express: 23.4 No. of stations 293 10 50 34 26 51 38 42 17 25 Local: 52 Trip hours (min) - 16 87 67.5 53 84~88 70 87 31.5 Express: 30 No. of cars 3,611 160 834 490 470 608 328 499 126 96 424 16 88 49 47 76 41 62 21 24 Trains per day (4-10) (10) (4-10) (10) (10) (8) (8) (8) (6) (4) Local: 10.0 Off-peak - 4.0 6.0 6.5 5.5 6.0 8.0 6.0 8.0 Dispatch Express: 20.0 interval 2.5- 4.0- 2.5- 4.5- Local: 6.7 (min) Peak - 3.0 2.5 3.0 2.5 3.0 5.0 4.0 6.0 Express: 20.0 Scheduled speed Local: 31.2 - 29.3 33.6 34.0 35.8 32.3 30.1 32.3 33.7 (Φ/h) Express: 46.8 Daily passengers 6,703 450 2,005 755 832 812 487 865 231 266 (1000/day) Transported 2,447 164 732 275 304 296 178 316 84 97 Annual passengers On-board 1,769 108 554 199 227 212 121 227 58 63 (million) Inflow 678 57 178 76 76 85 56 89 27 34

both express and local trains. The local trains run at the scheduled speed of 31 km/h, the same speed as with the other lines, but the express trains, which stop only at the selected stations using a siding track, run at the scheduled speed of 46 km/h.

8UEDQUDLOZD\LQRSHUDWLRQLQWKHORFDOPHWURSROLWDQFLWLHV

$PRQJWKHORFDOPHWUROLQHVHLJKWFDUWUDLQVHWVDUHUXQQLQJRQO\LQ%XVDQ0HWUR /LQH RSHUDWHGE\%XVDQ7UDQVSRUWDWLRQ&RUSRUDWLRQ DQG,QFKHRQ0HWUR/LQH RSHUDWHGE\,QFKHRQ0HWUR 7KHIRXUWRVL[FDUWUDLQVHWVDUHUXQQLQJRQRWKHUORFDO PHWUROLQHV7KHWUDLQVUXQDWWRPLQLQWHUYDOVVXSSO\LQJDUHODWLYHO\VPDOOHU transportation capacity.

7KHGDLO\QXPEHURISDVVHQJHUVSHUNPLVLQWKH%XVDQPHWUROLQHV

93 - Panam Banseok

Chapter 5 - Nokdong Pyeong-dong 21 (4) - Transit Int'l Daejeon District Corporation Gyeyang 94 Metropolitan Business 40 6.0 23 (4) 5.0- 30.8 20.5 10.0 7.0 5.0- - Sawol Transit Munyang Gwangju DUWUDLQVHWV Corporation Metropolitan 34 (8) 6.0 FLWLHVWKDQLQ 4.5- UFDUWUDLQVHWV SUHVVDQGORFDO QHZKLFKVHUYH - LQERWKWKH VHWVUXQQLQJRQWKH Daegok Anshim 30 (6) Metro Incheon GHVLJQFDSDFLW\RYHU DFNDWPLQLQWHUYDOV ULRXVDVWKDWLQ6HRXO UHODWLYHO\ORQJ2QWKH 34 (6) 2 Lines Line 1 Line 2 64 (6) - 5.0 5.0 Corporation - Daejeo Suyeong Total Daegu Metropolitan Transit 20 (4) 5.5 5.0- - Yangsan Jangsan 56 (6) 4.5 - Shin- Nopo 45 (8) pyeong 4.5 4.0- Line 1 Line 2 Line 3 - 31.5 32.3 31.9 - 30.8 34.3 32.6 34 753 413 265 75 316 171 145 220 48 97 121 (4-8) Busan Transportation Corporation 3 Lines Total ) 95.8 32.5 45.2 18.1 53.9 25.9 28.0 29.4 20.5 Φ Inflow ------19 - - Peak - Off-peak - 6.0 6.5 7.0 - 7.0 7.0 8.5-10.0 10.0 On-board 275 151 97 27 115 62 53 61 17 35

Urban railways in operation in the local metropolitan cities as of late 2010 cities as of late in operation in the local metropolitan 5-4> Urban railways

Metropolitan railways in operation as of late 2010

Gyeongbu Gyeongin Gyeongwon Joongang Ansan Gwacheon Bundang Ilsan Gyeongui Gyeongui Airport Category Total Line Line Line Line Line Line Line Line Line Line Railway Soyosan - Yong-san Oido Geum- Sangbong Sangbong Seoul Seoul Guro Cheong- - - jeong Jichuk Seoul - - - Route - - - ryangri Yong- Geum- - - - Chun- Chun- Incheon Cheon-an Incheon (under- mun jeong Nam- Daehwa Munsan cheon cheon Int'l ground) taeryeong Airport Distance (Φ) 536.9 122.9 27.0 42.9 71.2 26.0 14.4 27.7 19.2 46.3 81.3 58.0 45 No. of stations 209 20 24 24 13 8 20 10 18 18 9 (6) Trip hours (min) 140 46.5 66 89 35.5 22.5 46 27.5 59.5 79 53.0 No. of cars 2,414 550 480 200 168 300 168 160 112 120 156 Trains per day 58 48 20 21 30 28 16 15 15 26 277 (standard) (10) (10) (10) (4, 8) (10) (6) (10) (4, 8) (8) (6) Dispatch Off-peak 7.1 5.2 5.3 14.6 8.7 9.2 7.0 8.6 14.6 30.0 6.0 interval (min) Peak 6.0 2.7 4.0 8.6 6.0 5.5 4.1 6.0 12.0 10.0 6.0 Total operation 2,735 441 507 31 176 277 340 270 152 137 422 Local: Local: Scheduled speed 49.7; 34.8; 39.9 48.0 43.9 38.4 36.1 41.9 46.7 61.7 65.7 (Φ/h) Express: Express: 55.0 51.9 Year(million) 958.9 269.9 201.4 159.0 29.7 56.7 52.7 110, 3 49.0 19.4 0.6 10.0 No. of Daily average passengers 2,677.5 739 552 436 82 155 144 302 134 53 53 27.5 (1000) Note: Excluding New Bundang Line

2.2 Current Use of Urban Railways

6LQFHWKHRSHQLQJRI6HRXO0HWUR/LQHLQWKHDQQXDOQXPEHURIVXEZD\ SDVVHQJHUVSDVVHGWKHELOOLRQPDUNLQZKHQWKHFRQVWUXFWLRQRIWKHVHFRQG SKDVH6HRXO0HWUROLQHVZDVFRPSOHWHG+HOSHGE\WKHRSHQLQJRIWKHORFDOPHWUR lines in the 2000s WKHQXPEHURIVXEZD\SDVVHQJHUVJUHZFRQVLVWHQWO\WR billion in 2010. The share of the urban railway passengers in Seoul accounts for nearly 80% of the total transit passengers in the city.

9) The transfer passengers between Seoul Metro and the Seoul Metropolitan Rapid Transit lines were doubly counted in 2001.

95 Chapter 5 96 UDLOZD\V LQJGHJUHH Daejeon Gwangju Incheon Daegu Busan Seoul JMXKDYHRQO\RQH GLQ*ZDQJMXDQG GLQ*ZDQJMXDQG FLW\ VPHWUROLQH VLQ%XVDQ VLQ%XVDQ DERXWDVRI

South Korean urban railway passengers by year passengers by urban railway
South Korean Million passengers / year 2000 2002 2004 2006 2008 2010 0 7KHVKDUHYDULHVJUHDWO\E\FLW\EHFDXVHHDFKFLW\KDVDYDU\ 500  3,000 2,500 2,000 1,500 1,000 7KHVKDUHRIWKHXUEDQUDLOZD\VLQWKHPDVVWUDQVLWKRZHYHUL $V6HRXOKDVDZHOOGHYHORSHGQHWZRUNRIXUEDQDQGPHWURSROLWDQ 7KHVKDUHRIWKHXUEDQUDLOZD\VLQWKHPDVVWUDQVLWKRZHYHUL up and running as of 2012. 'DHMHRQ*ZDQJMXVLDQG'DHMHRQVLHDFKKDVWKHVWVWDJHRIWKH of urban railway infrastructure constructed so far. Seoul, for instance, has nine urban so far. of urban railway infrastructure constructed DQGPHWURSROLWDQUDLOZD\VLQRSHUDWLRQEXW'DHMHRQDQG*ZDQ is necessary to raise the continued construction of urban railways Accordingly, each. the passenger share. LQ'DHJXDQGLQ,QFKHRQZLWKDVLJQL¿FDQWO\ORZVKDUHIRXQ 10) Gwangju-si and Daejeon-si each has the 1st stage of the city's metro line 1 up and running as of 2012. LQ'DHJXDQGLQ,QFKHRQZLWKDVLJQL¿FDQWO\ORZVKDUHIRXQ 'DHMHRQ WKHSURSRUWLRQRIUDLOZD\SDVVHQJHUVLQWKHFLW\LVTXLWHKLJK public bus, the mass the share of the Including highest in the country. 2009, the in many as is the case total urban transportation, for 63% of the transit accounts PHWURSROLWDQFLWLHVLQDGYDQFHGFRXQWULHV
Passenger share of urban transportation in Seoul by transit type

Year Total Subway Bus Taxi Car Others 100 (%) 35.6 25.6 7.1 26.4 5.3 2003 29.38 million/day 1,046 752 209 775 156 100 (%) 35.8 26.2 6.6 26.4 5.0 2004 30.34 million/day 1,086 795 200 801 152 100 (%) 35.9 26.8 6.2 26.3 4.8 2005 31 million /day 1,079 853 202 815 152 100 (%) 34.7 27.6 6.3 26.3 5.1 2006 31.2 million/day 1,086 861 197 821 159 100 (%) 34.9 27.6 6.2 26.3 5.0 2007 31.51 million/day 1,100 870 195 829 158 100 (%) 35.0 27.8 6.2 26.0 5.0 2008 31.71 million/day 1,110 882 197 824 159 100 (%) 35.2 27.8 6.2 25.9 4.9 2009 31.95 million/day 1,125 888 198 828 157 Source: Homepage of Seoul City Urban Infrastructure HQ

7KHVKDUHYDULHVJUHDWO\E\FLW\EHFDXVHHDFKFLW\KDVDYDU\LQJGHJUHHRIXUEDQ railway infrastructure constructed so far. Seoul, for instance, has nine urban and 11 PHWURSROLWDQUDLOZD\VLQRSHUDWLRQEXW'DHMHRQDQG*ZDQJMXKDYHRQO\RQHHDFK Accordingly, the continued construction of urban railways is necessary to raise the passenger share.

Passenger share of urban transportation by transit type in the local metropolitan cities

(unit: 1000 /day)

City Category Cars Taxi Bus Rail Total Traffic 2,103 903 2,046 667 3,492 Busan Share 37% 16% 36% 12% 100% Traffic 1,800 460 944 288 3,417 Daegu Share 52% 13% 27% 8% 100% Traffic 1,494 405 1,301 217 1,887 Incheon Share 44% 12% 38% 6% 100% Traffic 1,016 289 553 30 2,343 Gwangju Share 54% 15% 29% 2% 100% Traffic 1,311 329 668 35 159 Daejeon Share 56% 14% 28% 1% 100% Source: KTDB

 Chapter 5 98 RQJWKHVH FRVWUHJLRQDO DFRQVLGHUDEOH JWKHLUDYHUDJH QDOGHVWLQDWLRQV PDWHULDOGDPDJH WVSHUWULSPLOHE\ RQWKHURDGWKXV DGWKHPRUHIXHO YHQWXDOO\ORZHULQJ IILFIDFLOLW\GULYHU OZD\VOHDGVWRURDG LJKWHGRIODWHDVWKH RYHURIDOOWKH WLRQFRVWތތLVFORVHO\ $VWKHFRQVWUXFWLRQ URPWKHFRQVWUXFWLRQ VZHOODVWKHPHGLFDO XHQWWUDI¿FDFFLGHQWV QVHTXHQWVSHHGLQJXS GZLWKWKHURDGVKDSH OWHUQDWLYHWUDQVLWWRWKH DLOZD\VWDWLRQ7KHXUEDQ 7KHSDVVHQJHUVRIWKHFRQYHQWLRQDOUDLOZD\VHUYLFHKDGWRVSHQG 2WKHULQGLUHFWEHQHILWVLQFOXGHUHGXFWLRQRIWKHHQYLURQPHQWDO The construction and operation of urban railways in the urban transit network network in the urban transit of urban railways and operation The construction The proliferation of automobiles consistently increased the number of traffic increased the number of traffic The proliferation of automobiles consistently 2.3 Creation of Social Welfare Social of 2.3 Creation WLPHWUDQVIHUULQJWRPXOWLSOHWUDQVLWVZKLOHWUDYHOLQJWRWKHU FXWWLQJWKHYHKLFOHRSHUDWLQJFRVW7KHELJJHVWEHQH¿WHDUQHGI SRVWDFFLGHQWDGPLQLVWUDWLYHDQGSDLQDQGSV\FKRORJLFDOFRVWV RIXUEDQUDLOZD\VUHGXFHGWKHURDGWUDI¿FDVZHOODVWKHVXEVHT LWLVFUHDWLQJWKHEHQH¿WRIUHGXFHGWUDI¿FDFFLGHQWV UDLOZD\VKRZHYHUUHPDUNDEO\UHGXFHGWKHDFFHVVWLPHWRWKHIL RIWKHURDGWUDIILFVKDYHGRIIWKHGULYLQJKRXUVRIDXWRPRELOHV RIXUEDQUDLOZD\VWKHUHGXFWLRQRIWUDYHOKRXUVDFFRXQWVIRU DVVRFLDWHGZLWKWKHURDGWUDI¿FDQGJHRJUDSKLFFRQGLWLRQVDQ *HQHUDOO\VSHDNLQJWKHIDVWHUWKHYHKLFOHUXQVRQWKHJLYHQUR HI¿FLHQWLWEHFRPHV$FFRUGLQJO\WKHFRQVWUXFWLRQRIXUEDQUDL ZLWKWKHKXPDQGDPDJHLQFOXGLQJWKHFRVWRIORVWSURGXFWLYLW\D automobiles, railways are excellent in As there is no congestion on the rail, unlike WHUPVRISXQFWXDOLW\)XUWKHUWKH\FDQSOD\DNH\UROHDVDQD the thunderstorm in summer. roadway during the cold spell in winter or GHYHORSPHQWPDUNHWH[SDQVLRQDQGLQGXVWULDOUHVWUXFWXULQJ$P UHGXFWLRQRIWKHHQYLURQPHQWDOFRVWKDVEHHQLQFUHDVLQJO\KLJKO XUEDQUDLOZD\VHIIHFWLYHO\UHGXFHGWKHDPRXQWRIDLUFRQWDPLQDQ UHGXFLQJWKHDFFXPXODWHGPLOHDJHRIDXWRPRELOHVWKXVLQFUHDVLQ The railways are playing a key role in creating social benefits, cruising speed. VKLIWHGWKHURDGWUDI¿FWRUDLOVHDVLQJWKHFRQJHVWLRQ7KHFR DFFLGHQWVZKLFKDUHWULJJHUHGE\DFRPELQDWLRQRIIDFWRUVWUD EHQH¿WV$FDWHJRU\RIGULYLQJSHUIRUPDQFHWKHދދYHKLFOHRSHUD WUDI¿FUHGXFWLRQZKLFKDFFHOHUDWHVWKHVSHHGRIDXWRPRELOHVH WKHYHKLFOHRSHUDWLRQFRVW YHKLFOHDQGHQYLURQPHQW7UDI¿FDFFLGHQWVPD\FDXVHKXPDQDQG HVSHFLDOO\EHFDXVHWKH\KDYHFRPSDUDWLYHDGYDQWDJHVRYHURWKHUWUDQVLWVLQGHDOLQJ ZLWKVXFKJOREDOLVVXHDVWKHHQHUJ\FULVLVDQGHQYLURQPHQWDOFRQFHUQV

3. Acquisition of the Advanced Urban Railway Technology Comparable to Those of the Developed Countries

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ÀRRUWUDP

:LWKWKHLQYROYHPHQWRISULYDWHIXQGVLQWKHXUEDQDQGPHWURSROLWDQUDLOZD\V DXVHUIULHQGO\XUEDQUDLOV\VWHPZDVUHDOL]HGDQGLQWKHSURFHVVZRUOGFODVV homegrown design, construction, and information/communication technologies were H[WHQVLYHO\DSSOLHG,Q0HWUR/LQHDVXEZD\V\VWHPZDVLQVWDOOHGWRDOORZWKH RSHUDWLRQRIWKH¿UVWH[SUHVVWUDLQVLQWKHFRXQWU\UHDOL]LQJDQXUEDQUDLOZD\V\VWHP faster than passenger cars. In the case of New Bundang Line, passenger mobility DQGFRQYHQLHQFHZHUHLPSURYHGE\GHVLJQLQJFXVWRPHURULHQWHGVWDWLRQVEDVHGRQ DGYDQFHGLQIRUPDWLRQWHFKQRORJ\DQGE\LQWURGXFLQJDQXQPDQQHGWUDLQRSHUDWLRQ system.

$VDUHVXOWRIWKHFRQWLQXHGHIIRUWVE\SULYDWHFRPSDQLHVWRORFDOL]HWKHUDLO technologies and to commercialize them in the construction and operation of urban UDLOZD\SURMHFWVWKHFRXQWU\ VUDLOWHFKQRORJ\KDVDGYDQFHGWRDOHYHOWKDWZRXOG TXDOLI\LWWRFRPSHWHZLWKWKRVHRIRWKHUGHYHORSHGFRXQWULHVZKLOHDWWKHVDPH

11) The energy consumption of a car for transporting one person over a distance of 1 km is five times bigger than that of the rail, while the emission of air contaminants by a car and a bus is estimated to be 200-300 times bigger than that by the rail.

99 Chapter 5 100 Export Import WKHFDVHRIWKH UWWKHSURMHFWE\ PDNLQJWKHUROH WLOOVXSSRUWVXSWR HVZLWKLQWKHFLW\ RQWULEXWHGJUHDWO\ 7KHFRXQWU\KDV RVWRUE\KHOSLQJ SURMHFWZKHUHWKH WKRIWKHFRXQWU\ V SURMHFWVDUHXVXDOO\ FXOWWKHJRYHUQPHQW RMHFWE\LVVXLQJVXEZD\

Export and import in South Korea of rail products Unit: $ million 2000 2002 2004 2006 2008 2010 - 800 700 600 500 400 300 200 100 7KHFDVHVIRXQGLQDQGRXWRIWKHFRXQWU\VKRZWKDWXUEDQUDLO 4. Lessons and Implications for the Future Projects 4. Lessons and Implications for time increasing the exports of the local rail products. The growth of the country's country's of the The growth products. local rail of the the exports increasing time the country's the growth of for instance, outpaced exports in 2005, rail product In the exporter of rail products. country into a net imports, turning the rail product HQGWKHXUEDQUDLOZD\GHYHORSPHQWSROLF\FDQEHVDLGWRKDYHF WRWKHDGYDQFHPHQWRIWKHUHOHYDQWWHFKQRORJLHVDQGWRWKHJURZ technology industry. 4.1 Important Role of the Central Government H[HFXWHGE\WKHORFDOJRYHUQPHQWVEHFDXVHWKHPHWURUDLORSHUDW OLPLWV7KHFRQVWUXFWLRQFRVWRIWKHPHWURLVLPPHQVHKRZHYHU ERQGV,QRWKHUZRUGVZKHQREWDLQLQJGLUHFWDVVLVWDQFHLVGLI¿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¿VFDOVXSSRUWLVSDUWLFXODUO\LPSRUWDQWLQWKH¿QDQFLQJRIWKHSURMHFWV 'XHWRWKHOLPLWHG¿VFDOUHVRXUFHVKRZHYHUWKHJRYHUQPHQWLVDGYLVHGWRDVVXPH UHVSRQVLELOLW\LQDFTXLULQJIRUHLJQORDQVRULQDWWUDFWLQJIRUHLJQLQYHVWPHQWV7KH JRYHUQPHQWFDQDOVRVWUHDPOLQHWKHUHOHYDQWODZVDQGUHJXODWLRQVVRWKDWWKHORFDO JRYHUQPHQWVFDQHDVLO\LVVXHERQGVIRUWKHFRQVWUXFWLRQDQGRSHUDWLRQRIDQXUEDQ railway, or it can take care of the process directly to a certain degree.

6HWWLQJH[FHHGLQJO\IDYRUDEOHSUHFRQGLWLRQVIRUIRUHLJQRUSULYDWHLQYHVWRUVWR SURPRWHWKHLULQYHVWPHQWLQXUEDQUDLOSURMHFWVFDQEDFN¿UHKRZHYHUDVZDVVHHQLQ WKHFDVHRIWKHOLJKWUDLOSURMHFWVH[HFXWHGZLWKWKHLQYROYHPHQWRISULYDWHLQYHVWRUV (VSHFLDOO\DSSO\LQJH[WUHPHO\IDYRUDEOHUHJXODWLRQVWRWKHSULYDWHRSHUDWRULQDQ DWWHPSWWRHQFRXUDJHSULYDWHLQYHVWPHQWFDQFUHDWHVHULRXVSUREOHPVGXULQJWKH RSHUDWLRQ$FFRUGLQJO\XUEDQUDLOSURMHFWVLQYROYLQJDWKLUGSDUW\IXQGVKRXOGEH SUHFHGHGE\DQH[WHQVLYHIHDVLELOLW\VWXG\DQGWKHVWUHDPOLQLQJRIWKHUHOHYDQWODZV DQGUHJXODWLRQVWRJXDUDQWHHWKHLUHI¿FLHQWPDQDJHPHQW

The local case in which the extension of the urban rails or the construction of QHZPHWURSROLWDQUDLOVZHQWDKHDGLQOLQHZLWKWKHGHYHORSPHQWRIKRXVLQJORWV merits further study. As the construction of the transit infrastructure was crucial WRWKHVXFFHVVRIWKHKRXVLQJORWGHYHORSPHQWWKHGHYHORSHUVZHUHZLOOLQJWR VKRXOGHUWKHILQDQFLDOEXUGHQRQEHKDOIRIWKHIXWXUHEHQHILFLDULHVWKHODQGORUGV RUKRPHRZQHUVLQWKHWDUJHWDUHD%\VRGRLQJWKHFHQWUDODQGORFDOJRYHUQPHQWV FRXOGUHGXFHWKHLUUHVSHFWLYHILVFDOEXUGHQVGUDPDWLFDOO\:KHQVXFKSROLFLHVDUH LPSOHPHQWHGKRZHYHUWKH\VKRXOGDOVREHH[DPLQHGLQOLQHZLWKWKHKRXVLQJDQG XUEDQGHYHORSPHQWSROLF\RQWRSRIWKHWUDQVSRUWDWLRQSROLF\

4.2 Efforts to Achieve Technological Independence

8UEDQUDLOSURMHFWVDUHDVKRZFDVHRIKLJKWHFKQRORJLHVDVWKH\LQYROYHQRWMXVW FRQVWUXFWLRQDQGHQJLQHHULQJVNLOOVEXWYDULRXVRWKHULQGXVWULHV7KHHDUO\XUEDQ railways in the country were built by emulating the foreign technologies in almost DOODUHDV7KH-DSDQHVHUHVHDUFKWHDPRULJLQDOO\FRQVLGHUHGVHQGLQJLWVRZQWHDPRI HQJLQHHUVWR6HRXOIRUWKHFRQVWUXFWLRQRI6HRXO0HWUR/LQHLIWKH6RXWK.RUHDQ

101 Chapter 5 102 WULEXWHGWR WULJJHUHGDKHDWHG UHLJQWHFKQRORJLHV DQGHYHQJRHVRXW KXVHVWDEOLVKLQJDQ GLQWKHRWKHUORFDO VHQJLQHHUVZRUNHG SPHQWSURMHFWJDYH HSWIRUWKHKLJKWHFK VRJDYHWKHFRXQWU\ WKH-DSDQHVHOLPLWHG EZD\WKHPVHOYHV,Q EHFDXVHLWKDGWRUHO\ E\WKH6RXWK.RUHDQ URZQHQJLQHHUV LQVWDOOHGZDVLPSRUWHG HGWRVHHNVHOIUHOLDQFH UXUEDQUDLOZD\V0DQ\ ,IDFRXQWU\SODQVWRSXVKIRUXUEDQUDLOSURMHFWVLWZLOOQH 7KHVXFFHVVIXOFRPSOHWLRQRIWKH6HRXO0HWUR/LQHSURMHFWFRQ Before the construction of an urban railway, the responsible parties should come the Before the construction of an urban railway, 4.3 Construction of a Competitive Urban Railway System 4.3 Construction of a Competitive Urban VWDIIKDGQRDGHTXDWHWHFKQRORJLFDOSURZHVVWRFRQVWUXFWWKHVX WKHHQGKRZHYHUPXFKRIWKHFRQVWUXFWLRQDQGHQJLQHHULQJH[F GD\DQGQLJKWDWWKHFRQVWUXFWLRQVLWHWROHDUQWKHDGYDQFHGIR The country hone their engineering skills. the country's engineers an opportunity to QRZKDVFDSDELOLWLHVFRPSDUDEOHWRWKRVHRIDGYDQFHGFRXQWULHV it had accumulated. to the global market based on the technology DGYDQFLQJWKHFRXQWU\ VFLYLOHQJLQHHULQJWHFKQLTXHVEXWLWDO PXFKFRQ¿GHQFH,QWKH6HRXO0HWUR/LQHSURMHFWWKHFRXQWU\ DQGWR¿QHWXQHWKHPVRWKH\ZRXOGPHHWWKHORFDOFRQGLWLRQVW features of Seoul's and best optimized for the geological urban railway technology WKHFRXQWU\ VHQYLURQPHQWV7KHVXEVHTXHQWSURMHFWVLQ6HRXODQ PHWURSROLWDQFLWLHVFRXSOHGZLWKWKHUDLOZD\WHFKQRORJ\GHYHOR to reduce the construction and operation with regard to the technologies to be used, FRVWV6RPHRIWKHHDUO\OLJKWUDLOZD\SURMHFWVLQ6RXWK.RUHD DUHDVVXFKDVWKHUROOLQJVWRFNVDQGVLJQDOLQJZDVFDUULHGRXW HQJLQHHUVDUPHGZLWKWKHLURZQWHFKQRORJLHVZLWKWKHUROHRI GHEDWHDERXWWKHSURMHFWFRVWEHFDXVHWKHIRUHLJQV\VWHPWREH 7KHRSHUDWRUH[SHULHQFHGGLI¿FXOW\HYHQLQWKHRSHUDWLRQVWDJH in the operation and maintenance of the on a foreign company for a certain period with limited technological prowess to system. It would thus be better for countries SXUVXHIRUHLJQWHFKQRORJ\WUDQVIHURUWRWUDLQDQGHGXFDWHWKHL WRWKHVXSHUYLVLRQRIWKHSURMHFW up with a master plan that can address the needs of the target customers. With the With customers. needs of the target up with a master plan that can address the rapid proliferation of automobiles and the growing competition between the roadway DQGWKHUDLOLWLVQRZDSUHUHTXLVLWHWRSURSXSWKHGHPDQGIR local cities in the country built their own urban rails, but they are bleeding red ink local cities in the country built their own urban rails, but they are bleeding red QRZGXHWRWKHOHVVWKDQH[SHFWHGSDVVHQJHUWXUQRXW 7KLVLVKDSSHQLQJEHFDXVHWKHODUJHVFDOHGHYHORSPHQWSODQQHGHDUOLHUZDVQRW implemented, and because their urban railways were not designed to be excellent in WHUPVRIVSHHGDQGWKHSDVVHQJHUV DFFHVVWRWKHVWDWLRQV([FHSWIRUWKHH[WUHPHO\ FRQJHVWHGUHJLRQVVLPSO\WUDQVSRUWLQJPDVVLYHQXPEHUVRISDVVHQJHUVLVQRWJRRG HQRXJKWRJXDUDQWHHLWVFRPSHWLWLYHQHVV)RULQVWDQFHLQWKHPHWURSROLWDQDUHDV ZKHUHWKHFRPPXWHLVORQJH[SUHVVWUDLQVDUHUHTXLUHGWRVKRUWHQWKHWUDYHOWLPHEXW WKHODFNRIVLGLQJWUDFNVHQDEOHGRQO\DOLPLWHGRSHUDWLRQRIVXFKWUDLQV2QO\DIWHU WKHRSHQLQJRI6HRXO0HWUR/LQHLQGLG6HRXOVHHWKHRSHUDWLRQRIH[SUHVV WUDLQV7KHSDVVHQJHUV SUHIHUHQFHIRUWKHH[SUHVVWUDLQKDVEHHQVKRZQWREHYHU\ high.

Accordingly, a country that is planning to build an urban railway should carefully FRPHXSZLWKDSODQWREXLOGDUDLOZD\WKDWLVFRPSHWLWLYHDVZHOODVFRPSDWLEOH to the city's characteristics. In the process, the design of the urban railway should HQFRPSDVVWKHFRPSUHKHQVLYHDVSHFWVRIWUDQVSRUWDWLRQVXFKDVWKHOLQNXSWUDQVLWV PDQDJHPHQWRIWKHWUDI¿FGHPDQGDQGWKHUDLOWHFKQRORJLHVWRPD[LPL]HWKHLPSDFW RIWKHSURMHFW

4.4 Role as a People-friendly Transportation

The country's urban railway operators are losing money because their operating income is less than their operating loss. Not only the urban railways in the local metropolitan cities with limited demands but also those in Seoul are recording an RSHUDWLQJORVVHYHU\\HDUGHVSLWHWKHDEXQGDQWGHPDQG7KLVLVEHFDXVHRIWKHSROLF\ WKDWFRQWUROVWKHXUEDQUDLOZD\IDUHDVDSHRSOHIULHQGO\WUDQVSRUWDWLRQ7KHIDUHRI WKHFRXQWU\ VXUEDQUDLOZD\VLVNHSWDWDERXWRIWKHIDUHVLQWKHDGYDQFHG FRXQWULHVTXLWHORZHYHQDIWHUDFRUUHFWLRQDFFRUGLQJWRWKHFRXQWU\ VSHUFDSLWD GNP. As the country has a consolidated fare system with buses, the actual fare SHUWULSPLOHLVHYHQORZHUWKDQWKRVHLQWKHDGYDQFHGFRXQWULHV$FFRUGLQJO\LWLV XQOLNHO\WKDWRQHFDQHDUQSUR¿WVXQGHUWKHFXUUHQWIDUHV\VWHP)XUWKHUPRUHVHQLRUV older than 65, the disabled, and men of national merit are allowed to ride the train IUHHRIFKDUJHORZHULQJWKHSUR¿WHYHQPRUH

It is hard to find an example of an urban railway operator that has realized SUR¿WDELOLW\HYHQLQDIRUHLJQFRXQWU\WKRXJK,QPRVWFRXQWULHVXUEDQUDLOZD\VDUH

103 Chapter 5 104 LQJJOREDO FGHYHORSPHQW HGWKHNH\VRFLDO SHULHQFHRI6RXWK PHQW ZRUOGRYHULVWUDI¿F ZD\VLVDQH[FHOOHQW UDWLRQKRZHYHUFDQ QH[FHOOHQWPRGHOWR HORSLQJFRXQWULHVDUH LQGXVWULDOL]DWLRQZDV QUDLOZD\VWRUHVROYH DPHQWDOO\UHVROYHWKH FRQRP\EXWLWVXUEDQ DGHTXDWHUHJXODWLRQV YHWKHFLW\ VOLQNZLWK HUDWLRQ$GHYHORSLQJ JURZWK6RXWK.RUHD \SXEOLFWUDQVSRUWDWLRQ RQRPLFSURVSHULW\ZLOO YHVWPHQWLQLQGXVWU\7R so that a precise estimate of the demand based so that a precise estimate  that can help establish an efficient transportation master plan. :LWKWKHHQYLURQPHQWDODQGHQHUJ\LVVXHVORRPLQJODUJHDVSUHVV 2QHRIWKHELJJHVWSUREOHPVIDFLQJWKHPHWURSROLWDQFLWLHVWKH 4.5 Conclusion and ordinances should be legislated and ordinances should intended to boost the people's welfare in terms of transportation, and to thus create and to thus of transportation, in terms welfare the people's to boost intended VRFLDOEHQH¿WVUDWKHUWKDQWRPDNHPRQH\$FFRUGLQJO\WKHGHY DGYLVHGWREXLOGDQGRSHUDWHXUEDQUDLOZD\VDVDSHRSOHIULHQGO PRGH([FHVVLYHORDQVDQGRSHUDWLQJORVVGXULQJWKHUDLOZD\RSH VHULRXVO\KDPSHUWKHSURMHFW VILQDQFLDOLQWHJULW\,QWKHHQG FRXQWU\LQWKHSDVW6RXWK.RUHDXQGHUVWRRGGXULQJLWVHFRQRPL WKDWLQYHVWPHQWLQWUDQVLWLQIUDVWUXFWXUHLVDVLPSRUWDQWDVLQ ZRUVHQLQJWUDI¿FFRQJHVWLRQLQWKHFLW\GXHWRXUEDQL]DWLRQDQG DYHU\ZLVHGHFLVLRQ6RXWK.RUHD VXUEDQUDLOZD\VDUHFRQVLGHU in railways, including urban railways, are concerns, the importance of and interest ULVLQJIDVW7KHGHYHORSLQJFRXQWULHVWKDWDVSLUHWRDFKLHYHHF KDYHWRFRQVLGHUEXLOGLQJDWUDQVLWLQIUDVWUXFWXUHVXFKDVXUED VROXWLRQZLWKWKHLUSXQFWXDOLW\VDIHW\DQGSROOXWLRQIUHHRS DFKLHYHHFRQRPLFJURZWKLWDJUHHGWKDWLWLVFULWLFDOWRLPSUR the time required to commute between its surrounding areas, as well as to reduce WKHP,QUHWURVSHFWWKHFRQVWUXFWLRQRIXUEDQUDLOZD\VWRIXQG RYHUKHDGFDSLWDOVXSSRUWLQJWKHFRXQWU\ VVRFLRHFRQRPLFGHYHORS WKHLUWUDI¿FLVVXHVDQGWRUHDOL]HWKHLUSRWHQWLDOIRUHFRQRPLF FRQJHVWLRQ(YHU\ERG\NQRZVWKDWWKHFRQVWUXFWLRQRIXUEDQUDLO LVDUDUHH[DPSOHRIDFRXQWU\WKDWKDVDGYDQFHGQRWMXVWLWVH UDLOZD\VWRWKHOHYHORIWKRVHLQWKHDGYDQFHGFRXQWLHV7KHH[ .RUHDLQWKHGHYHORSPHQWRIXUEDQUDLOZD\VPD\WXUQRXWWREHD HPXODWHIRUPDQ\GHYHORSLQJFRXQWULHV on the target fare could be made, and so that the design of the matching system can fare could be made, and so that the design on the target be implemented. 12) for constructing a national traffic database In the country, KOTI or Korea Transport Institute is responsible

Part - İ [2011 Modularization of Korea’s Development Experience] Construction of High Speed Rail in Korea

Government Publications Registration Number 11-1051000-000214-01 ISBN 978-89-93695-72-4 94320 ISBN 978-89-93695-27-4 (SET 40) Copyright © 2012 by Ministry of Strategy and Finance, Republic of Korea Contents

Summary 1 Chapter 1. Background 5 1. Proposal of High Speed Rail as a New Transportation Means 5 1.1 Necessity of Drastic Transportation Measures 5 1.2 Recommendation by Domestic and Overseas Research Institutes to Construct a High Speed Rail 6 1.3 Recommendation of Constructing a High Speed Rail to Improve the Gyeongbu Transportation System 7 2. Selection of the High Speed Rail as the Optimal Alternative 8 2.1 Conducting a Feasibility Study 8 2.2 Determining the Technical-Survey Policies 9

Chapter 2. Estabishment of the Project Plan and the Implementation System 13 1. Establishment of the Project Plan 13 1.1 Execution of the Technical Survey· 13 1.2 Initial Project Plan 18 1.3 Revisions of the Project Plan 20 2. Revision of the Implementation System 27 2.1 Implementation Organizations 27 2.2 Relevant Laws 33

Chapter 3. Key Project Issues 35 1. Design Criteria and Detail Design 35 1.1 Establishment of the Design Criteria and Basic Design 35 1.2 Detail Design 37 2. Introduction of the Project Management System 38 2.1 Background 38 2.2 Bechtel’s Project Management Services (1993-2001) 39 2.3 Establishing an Independent Project Management System (2002-2005) 41 3. Vehicle Type Selection and Contract Conclusion 41 3.1 Overview 41 4. Technology Transfer and Localization 59 4.1 Vehicle Production 59 4.2 Technology Transfer· 59 4.3 Progress of the Vehicles and Parts Localization 60 5. Development of the High Speed Rail Technology 62 5.1 G7 High Speed Rail Technology Development Project 62 5.2 High Speed Rail System Technology Development Project 65 6. Selection of the Construction Companies and Construction of the Test Railway Section 67 6.1 Selection of the Construction Companies 67 6.2 Commencement of the Test Railway Section 68 7. Preparation for the Opening and Operation of the High Speed Rail System 68 7.1 Completion of the First-Phase Construction Project, and Execution of a Commercial Test Run 68  3UHSDUDWLRQIRUWKH2IÀFLDO6WDUWRIWKH6HUYLFH 70 8. Financial Procurement 79 8.1 Financial-Procurement Plan 79 8.2 Financial-Procurement Performance 80 8.3 Future Repayment Plan and Measures 82 Contents

&KDSWHU'LIÀFXOWLHVLQWKH3URFHVVRI([HFXWLQJWKH3URMHFW 83 1. Key Factors in the Poor Performance of the Project 83 1.1 Excessive Civil Complaints and Regional Self-centeredness 83 1.2 Route Change 86 2YHUFRPLQJWKH'LIÀFXOWLHV 92 2.1 Conducting Safety Inspections and Establishing Measures to Prevent Poor Construction 92  'HVLJQ9HULÀFDWLRQDQG6XSSOHPHQWDWLRQ 94 2.3 Execution of a Complete-responsibility-based Management System 95 2.4 Establishing the High Speed Rail Quality Control System 95 2.5 Public Promotion of the High Speed Railway System 96

Chapter 5. Evaluation and Implications 98 1. Evaluation 98 1.1 Major Achievements 98 1.2 Downsides 104 2. Implications 108

References 113 Appendix 114 Contents _ List of Tables

Technical-Survey Service Related Agencies by Area 14
Comparison of Two Short-Listed Route Alternatives in the Basic Plan 19
Comparison of the Revisions of the Basic Project Plan 25
Laws Pertaining to the High Speed Rail 34

Design Criteria for the Foreign High Speed Rail Systems 37
Conditions of the PMS Contract 41
Key Loan Conditions Agreed upon by the National Assembly 56
Final loan Conditions 57
Progress of the Technology Transfer 60
Localization Outcomes of the Vehicles and Parts 61
Milestones of the Korean High Speed Rail Technology Development Project 62
Core Technologies of the Korean High Speed Rail System 63
Key Outcomes of the G7 Project 64
Key Research Topics by Objective 66
Key Issues of the Integrated-Operation Preparatory Plan 71
Gyeongbu High Speed Rail Budget Plans 79
Conditions for Public-Loan Introduction 81
Funding Procurement Plans and Outcomes of Gyeongbu High Speed Railway (Phase 1) 82 Contents

Mode Share between Vehicles after the Opening of the High Speed Rail 101
Reduction in Energy and Environmental Costs due to the Gyeongbu High Speed Rail 102
International Conventions Held in Cities that have a KTX Station 102
Trends in the Number of Days of Using Medical Facilities in Other Regions 103
Travel Demand for the High Speed Rail 104
Travel Demand for the High Speed Rail and the Conventional Rail 105
KORAIL’s Passenger Carriage Revenues 105
Comparison of Each Country’s Railway Fares 106
Korea Network’s Accumulated KTX Debts 107 Contents _ List of Figures

Highway and Railway Network (1988) 12

The Route of Gyeongbu High Speed Rail 26
Three Divisions of High Speed Rail Construction Planning Team 28
High Speed Rail Headquarters 30 )LJXUH! +LJK6SHHG5DLO&RQVWUXFWLRQ2IÀFH 30
Organization and Personnel of Korean High Speed Rail Construction Authority 31

The Five Stage of the High Speed Train Engineer Training Program 72

Mode Share in the Seoul-Busan Corridor 101
Mode Share in the Seoul-Daegu Corridor 101
Comparison of the Transportation Time before and after the Opening of Gyeongbu High Speed Railway (From Seoul) 101
Changes in the Ratio of the Sales from Tourist Accommodation Facilities before and after the Opening of KTX 103
Changes in the Wholesale and Retail Sales Increase Ratios before and after the Opening of KTX 104 Summary

In the 1980s, transportation facilities such as roads and railroads were already crowded due to the rapid industrialization in the country. The investment in roads DORQHUHVXOWHGLQOLPLWDWLRQVLQFRSLQJZLWKWUDI¿FFRQJHVWLRQ,WZDVH[SHFWHGWKDW GHVSLWHWKHFRQVWUXFWLRQRIQHZH[SUHVVZD\VRUWKHH[SDQVLRQRIH[LVWLQJRQHVWKH soaring number of automobiles would increase corridors with traffic congestions. Thus, a necessity was raised to introduce a new transport mode between Seoul and Busan, and a feasibility study results indicated that it would be appropriate to FRQVWUXFWH[FOXVLYHKLJKVSHHGSDVVHQJHUUDLOZD\OLQHDORQJWKH*\HRQJEXFRUULGRU )RUWKUHH\HDUVIURPWRDWHFKQLFDOVXUYH\IRUWKH*\HRQEXKLJKVSHHG rail project was conducted by some governmental research institutes and domestic UDLOWHFKQRORJ\UHODWHGHQJLQHHULQJFRPSDQLHV%DVHGRQWKHUHVXOWVRIWKHWHFKQLFDO VXUYH\WKHFRQVWUXFWLRQRI*\HRQJEXKLJKVSHHGUDLOZD\OLQHVWDUWHGLQ-XQH

In the early stages of the KTX project, rail technology levels in Korea were very ORZ'HVSLWHODFNRIXQGHUVWDQGLQJRIDQGH[SHULHQFHLQKLJKVSHHGUDLOWHFKQRORJLHV the country went ahead with the project with inadequately prepared design GRFXPHQWVRUVSHFL¿FDWLRQV$OVRWKHW\SHRIFDUVZDVGHWHUPLQHGYHU\ODWHZKLFK required overall complementation of the design and caused much confusion and PDQ\WULDODQGHUURUHIIRUWV$OVRGXHWRWKHHFRQRPLFFULVLVLQWKHODWWHUKDOIRIWKH VWKHRULJLQDOSODQWRFRQVWUXFWKLJKVSHHGUDLOZD\OLQHE\ZDVFKDQJHGWR EHZKROO\FRQVWUXFWHGE\ZLWKSDUWLDORSHUDWLRQRIKLJKVSHHGWUDLQIURP

+LJKVSHHGUDLOSURMHFWVUHTXLUHKLJKO\DGYDQFHGWHFKQRORJLHVDUHODUJHVFDOHDQG DUHKLJKO\OLNHO\WRJRWKURXJKWHFKQLFDOGLI¿FXOWLHVDQGWULDOVDQGHUURUVDQGWRIDFH

1 YDULRXVGLI¿FXOWLHVVXFKDV1*2FRPSODLQWVLQWKHSURFHVV'XULQJWKHKLJKVSHHG rail project, construction work was stopped many times, which delayed the project, due to various civil complaints in the process of purchasing land and obtaining approval and controversies over the safety of the tunnels passing through areas DGMDFHQWWRDEDQGRQHGPLQHV1RWDEO\WKH*\HRQJMXOLQHKDGWREHFKDQJHGGXHWR environmental civil complaints over the Mt. Cheonseong segment and to conserve heritage sites. The Daejeon and Daegu lines, which pass downtown areas, caused FRQÀLFWVZLWKUHOHYDQWJURXSVDQGPXQLFLSDOLWLHV7KHFHQWUDOJRYHUQPHQWDQGWKH .RUHD+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\KDGWKHSDWLHQFHDQGZLVGRPWR persuade and negotiate with stakeholders, however, which helped them overcome these problems.

Despite many such difficulties and trials and errors, the project helped enhance Korea’s rail technology level as well as the design and construction technology and WKHFRXQWU\¶VSUR¿OH%DVHGRQVXFKDSRVLWLYHDVVHVVPHQWRIWKH.7;.RUHDLVQRZ making efforts in the construction of new KTX lines as well as the speed upgrade of H[LVWLQJUDLOZD\OLQHVIURPWKHPD[LPXPVSHHGRINPKWRNPK

7RVXFFHVVIXOO\LPSOHPHQWODUJHVFDOHSURMHFWVVXFKDVKLJKVSHHGUDLOLW is important to improve the impulsion system with the strong backing of the JRYHUQPHQW6RXWK.RUHDHVWDEOLVKHGDQH[FOXVLYHSXEOLFDJHQF\ WKH.RUHD+LJK VSHHG5DLO&RQVWUXFWLRQ$XWKRULW\ WRLPSOHPHQWWKHSURMHFWIURPWKHEHJLQQLQJ DQGWKHUHODWHGPLQLVWU\HVWDEOLVKHGDVSHFLDOFRPPLWWHHIRUWKLVSXUSRVH WKH62& ,QIUDVWUXFWXUH&RQVWUXFWLRQ,PSXOVLRQ&RPPLWWHH $QRWKHUIDFWRUIRUWKHVXFFHVVIXO operation of KTX is the accumulated operation knowhow of Korea’s national rail operator, Korea railroad. Korea railroad is the only agent that runs the national UDLOZD\QHWZRUNLQ.RUHDZLWKRYHU\HDUVRIUDLOZD\RSHUDWLRQH[SHULHQFHDQG HYHQEHIRUHWKHLQWURGXFWLRQRI.7;LWKDVH[SHULHQFHLQWKHWUDLQRSHUDWLRQRI PLOOLRQWUDLQNP

)RUWKHVXFFHVVIXOLPSOHPHQWDWLRQRIKLJKVSHHGUDLOSURMHFWLWLVDOVRQHFHVVDU\ WRLPSURYHWKHVDIHW\DQGTXDOLW\VWDQGDUG'XULQJWKHFRQVWUXFWLRQRIKLJKVSHHG railway line in Korea, huge distrust and suspicion toward the safety and quality of WKHSURMHFWDOPRVWVWRSSHGWKHSURMHFW$VDPHDVXUHWRUHGXFHWKHVXVSLFLRQDQG distrust on the safety and quality, it is worth considering having internationally

 renowned organizations participate in the construction project as Korean government adopted.

,WLVLQHYLWDEOHIRUGHYHORSLQJFRXQWULHVWRLQWURGXFHDGYDQFHGKLJKVSHHGUDLO technologies from foreign countries. In this case, it is highly recommended to set up technology transfer strategies to ultimately secure such technologies. They can thus XVHWKHVHFXUHGWHFKQRORJLHVLQFRQVWUXFWLQJDQGRSHUDWLQJDGGLWLRQDOKLJKVSHHG UDLOVDQGLQHQWHULQJRYHUVHDVUDLOPDUNHWV,QLQWURGXFLQJIRUHLJQKLJKVSHHGUDLO technologies, it is recommended for them to consider the technologies’ marketability DQGGHYHORSPHQWSRVVLELOLWLHV$OVRGXULQJWKHLQWURGXFWLRQRIKLJKVSHHGUROOLQJ stocks from foreign countries, they can benchmark the Korean case in which UROOLQJVWRFNFRVWZDVUHGXFHGDQGEHWWHUWHUPVLQWHFKQLFDOWUDQVIHUDQG¿QDQFLDO procurement were achieved through the competition among bidding countries.

7RLQFUHDVHKLJKVSHHGUDLOGHPDQGLWLVHVVHQWLDOWRGHYHORSDQHI¿FLHQWWUDQVIHU system between modes, such as buses, passenger cars, subways, and etc. It is recommended to develop a transfer system simultaneously with the opening of a KLJKVSHHGUDLOZD\OLQHWRLQFUHDVHWKHWUDYHOGHPDQGDQGWKHSURILWDELOLW\$OVR KLJKVSHHGUDLOVWDWLRQVLIFRQVWUXFWHGIDUDZD\IURPGRZQWRZQDUHDVZLOOORZHU accessibility and weaken competitiveness. Thus, construction of the stations in downtown areas should be positively considered.

$OWKRXJKWKHUHKDYHEHHQPDQ\FRPSODLQWVDQGGLI¿FXOWLHVLQ.7;FRQVWUXFWLRQ in Korea, these obstacles were wisely overcome, and now the KTX project is UHFRJQL]HGDVRQHRIWKHPRVWVXFFHVVIXOJRYHUQPHQWUXQSURMHFWV(YHQWKRXJKWKHUH DUHVRPHSUREOHPVUDLVHGLQWHUPVRIWKHGH¿FLWVRI.RUHD5DLO1HWZRUN$XWKRULW\ the KTX project is evaluated to produce many positive effects, such as the drastic HQKDQFHPHQWRI.RUHD¶VUDLOZD\WHFKQRORJ\WKHLPSURYHPHQWRIWKHFRXQWU\¶VODUJH scale project management ability, consensus on the necessity of quality management, WKHDFTXLVLWLRQRI.7;RSHUDWLRQWHFKQLTXHVWKHHVWDEOLVKPHQWRIWKHHFRIULHQGO\ national transportation system, the promotion of local economy, and improvement RIWKHQDWLRQDOLPDJH$OVRWKH.RUHD¶VH[SHULHQFHLQWKHFRQVWUXFWLRQRIKLJKVSHHG rails and enhanced rail technologies should provide it with an engine with which to HQWHUWKHUDSLGO\H[SDQGLQJJOREDOUDLOPDUNHW



Chapter 1. Background

1. Proposal of High Speed Rail as a New Transportation Means

1.1 Necessity of Drastic Transportation Measures

7RVXSSRUWWKH¿YH\HDUQDWLRQDOHFRQRPLFSODQIRUPXODWHGLQWKHV6RXWK Korea pushed to implement policies that bolster transportation capabilities centering RQH[SUHVVZD\V7KXVURDGLQIUDVWUXFWXUHVVXFKDV*\HRQJEXDQG*\HRQJLQ ([SUHVVZD\ZHUHFRQVWUXFWHGLQFUHDVLQJWKHQXPEHURIH[SUHVVZD\VDQGQDWLRQDO roads constructed. Less investment was made, however, in the construction of railroads.

2IWKHWUDQVSRUWDWLRQLQYHVWPHQWVPDGHVLQFHURDGFRQVWUXFWLRQWRSSHG ZKLOHUDLOURDGFRQVWUXFWLRQ H[FHSWIRUWKHH[WHQVLRQRIUDLOURDGVWRDQGIURPKDUERUV DQGLQGXVWULDOFRPSOH[HV  UHPDLQHGQLO2QO\GRXEOHWUDFNVIRUNH\UDLOURDGOLQHV HOHFWUL¿FDWLRQRIUDLOURDGVDQGDOLJQPHQWLPSURYHPHQWRIVRPHVHFWLRQVKDYHEHHQ FRQGXFWHG$VDUHVXOWRIWKHSDVVHQJHUWUDQVSRUWDWLRQZDVSHUIRUPHGE\WKH *\HRQJEX([SUHVVZD\ZKLOHRQO\RIWKHSDVVHQJHUWUDQVSRUWDWLRQZDVSHUIRUPHG by railways.

In the 1980s, transportation facilities such as surface roads and railroads were

1) As of 1975, the length of the national railway was 3,144 km.

 Chapter 1   N ey inland k WKH6RXWK DVH]RQHVZLWK HVWRIWKHEDQ DVXUYH\JURXS LHVWRWKHFORVH RUWKHH[SDQVLRQ HJDQLQWKHHDUO\ ZKRSDUWLFLSDWHG ZRXOGKDYHEHHQ VZD\FDUULHG U\7KHH[SDQGHG HUPWUDQVSRUWDWLRQ VHE\DQG QDQGRIWKH UJRHV0RUHRYHUWKH ZD\DQGPHWURSROLWDQ OLQH*\HRQJEX([SUHVVZD\ZKLFK N H\WUXQ N $ERXWWKHVDPHWLPHDJURXSRISURIHVVRUVDVVLJQHGWRHYDOXDWH $QRIILFLDOGLVFXVVLRQRQWKHFRQVWUXFWLRQRIKLJKVSHHGUDLOE $WWKDWWLPH6RXWK.RUHDZDVMXVW¿QLVKLQJWKHLQGXVWULDOUDLO 1.2 Recommendation by Domestic and Overseas Research Institutes by Domestic and Overseas Research 1.2 Recommendation to Construct a High Speed Rail DOUHDG\FURZGHGGXHWRWKHUDSLGLQGXVWULDOL]DWLRQLQWKHFRXQW investment in roads alone resulted in limitations in transportation infrastructure. It transportation infrastructure. in limitations in in roads alone resulted investment ZDVH[SHFWHGWKDWGHVSLWHWKHFRQVWUXFWLRQRIQHZH[SUHVVZD\V RIH[LVWLQJRQHVWKHVRDULQJQXPEHURIDXWRPRELOHVZRXOGLQFUH WUDIILFGLIILFXOWLHV$VRIWKH and economic activities and the great artery for social was the country’s WUDQVSRUWDWLRQURXWHVHUYLFHGRIWKHFRXQWU\¶VSRSXODWLR FRXQWU\¶V*'3ZDVFRQFHQWUDWHGDORQJLWVURXWH*\HRQJEX([SUHV RIWKHWRWDOSDVVHQJHUVLQWKHFRXQWU\DQGRIWKHWRWDOFD DYHUDJHGHPDQGRISDVVHQJHUVDQGFDUJRHVZDVH[SHFWHGWRLQFUHD of new The introduction difficulty. logistics adding to the country’s respectively, was therefore required. transportation facilities V:KHQWKHFRXQWU\GLVFXVVHGERUURZLQJVIURP,%5'LQ IURP61&)DQG-$576UHVHDUFKHGRQPHDVXUHVLQDWWKHUHTX saturated by the 1980s. They thus proposed the construction of a high speed rail. They thus saturated by the 1980s. WRFRSHZLWKWKH6HRXO%XVDQWUDQVSRUWDWLRQSUREOHPV HOHFWULFUDLOZD\SURMHFWVDQGWKHH[DPLQHUVLQERWKFRXQWULHV LQWKHVHSURMHFWVHVWLPDWHGWKDWWKHH[LVWLQJ*\HRQJEXUDLOZD\ proposed a project similar to the one by the French policies Korean government’s DQG-DSDQHVHVXUYH\JURXSVDVDPHDVXUHWRLQFUHDVHWKHORQJW FDSDFLW\RIWKH*\HRQJEXUDLOZD\FDSLWD*'3ZKLFKDJDLQWHVWLI relationship between the country's building of the urban railway infrastructure and relationship between the country's building its economic growth. 1.3 Recommendation of Constructing a High Speed Rail to Improve the Gyeongbu Transportation System

,WZDVDIWHU.$,67 .RUHD$GYDQFHG,QVWLWXWHRI6FLHQFHDQG7HFKQRORJ\ FDPH XSZLWKDQLQGHSHQGHQWUHVHDUFKUHSRUWRQ³+HDY\)UHLJKW7UDQVSRUWDWLRQ6\VWHP DQG7UDQVSRUWDWLRQ,QYHVWPHQW2SWLPL]DWLRQ3ODQ´DQGSURSRVHGWKHFRQVWUXFWLRQ of a new railway that the serious discussion of the construction of a high speed rail EHJDQ)RUWKUHH\HDUV 1RYHPEHU-XO\ .$,67FRQGXFWHGDVWXG\ on the development of a model for estimating the future national transportation GHPDQGDVVHVVLQJWKHH[LVWLQJWUDQVSRUWDWLRQIDFLOLWLHVFRPSDULQJDQGUHYLHZLQJ plans for increasing transportation capacities, and creating a comprehensive national WUDQVSRUWDWLRQV\VWHP7KHUHVHDUFKUHSRUWHVWLPDWHGWKDWEHWZHHQDQG WKH*\HRQJEXWUDQVSRUWDWLRQOLQHWKHH[LVWLQJWUDQVSRUWDWLRQV\VWHPEHWZHHQ6HRXO DQG%XVDQZRXOGUHDFKDOHYHORIWUDQVSRUWDWLRQGLI¿FXOW\,QSDUWLFXODULWSUHGLFWHG WKDWLQWKHUDLOZD\VRYHUKDOIRIWKH*\HRQJEXWUDQVSRUWDWLRQOLQHZRXOGUHDFKLWV capacity limit by 1989.

%DVHGRQVXFKDQDO\VLVUHVXOWV.$,67SURSRVHGWZRDOWHUQDWLYHV  WRLQFUHDVH WKHWUDQVSRUWDWLRQFDSDFLW\RIWKH*\HRQJEXWUDQVSRUWDWLRQOLQHE\FUHDWLQJDQHZ GRXEOHWUDFNHOHFWULFUDLOZD\ 1HZ*\HRQJEX/LQH EHWZHHQ6HRXODQG%XVDQ DQG  WRFUHDWHDKLJKVSHHGSDVVHQJHUUDLOZD\WRLPSURYHWKHHI¿FLHQF\RI1HZ *\HRQJEX/LQH

Based on the research results, the discussion of the necessity of constructing *\HRQJEX+LJKVSHHGUDLOFRQWLQXHGLQWKHVDWDPRUHFRQFUHWHOHYHODQG ILQDOO\LQ)HEUXDU\WKH3UHVLGHQWRUGHUHGWKHHVWDEOLVKPHQWRIDORQJWHUP WUDQVSRUWDWLRQPHDVXUHLQUHODWLRQWRWKHKLJKVSHHGUDLODWKLVQHZ\HDULQVSHFWLRQ WRXURIWKH0LQLVWU\RI7UDQVSRUWDWLRQ$VVXFKDIXOOVFDOHVXUYH\RQDKLJKVSHHG rail began.

Keenly aware of the necessity of a high speed rail, the South Korean government VWLSXODWHGWKHKLJKVSHHGUDLOSODQRIHVWDEOLVKLQJDNPORQJFRUULGRUEHWZHHQ 6HRXODQG'DHMHRQLQWKH)LIWK)LYH

 Chapter 1 8 QWLQXHWR OLW\6WXG\RQ QJ*\HRQJEX HVVLW\RID/RQJ WKHLQWHUQDO W\RIWKHUDLOZD\ GDOWHUQDWLYHWKH 1RYHPEHU HULRGRIWKH)LYH RQJEX/LQHWKUHH QWUDWHRQUDLOZD\V [LVWLQJ*\HRQJEX  7KHVWXG\ GLQWKHSURSRVDORI ZKHUHDVWKDWIRU VVZD\UDLOZD\SODQ SODQZDVFRQGXFWHG QRQWKHH[SUHVVZD\ DQKLJKVSHHGUDLODQ ZHHQDQG OZD\DQGH[SUHVVZD\ QWKHJUHDWH[SDQVLRQ OLQHZRXOGH[SHULHQFH 7KH¿UVWVWDJHIHDVLELOLW\VWXG\ )HEUXDU\$XJXVW UHVXOWH 7KH0LQLVWU\RI7UDQVSRUWDWLRQFRQGXFWHGWKH³5HYLHZRQWKH1HF $FDUHIXOUHYLHZRIWKHWKUHHDOWHUQDWLYHVVKRZHGWKDWWKHWKLU 2.1 Conducting a Feasibility Study 2.1 Conducting a Feasibility

2.2 Determining the Technical-Survey Policies

$IWHUWKHIHDVLELOLW\VXUYH\WKHQHHGIRUFRQVWUXFWLQJDKLJKVSHHGUDLOTXLFNO\ H[SDQGHGDQGZDVUHIOHFWHGRQWRWKH)LIWK)LYH

,WZDVZKHQWKHQHZSUHVLGHQWZKRZRQLQWKHHOHFWLRQPDGHDSXEOLFSOHGJH to have a high speed rail constructed that the issue of the construction of a high VSHHGUDLOUHHPHUJHG$IWHUWKHQHZSUHVLGHQWWRRNRI¿FHWKHFRQVWUXFWLRQRIDKLJK VSHHGUDLOZDVVWLSXODWHGLQWKH6L[WK)LYH

There has never been any objection to the need for a high speed rail, but transportationrelated scholars, in particular, led various discussions then on the timing of the construction, and on the technical issues surrounding the project. Below is a summary of the key debates.

First, there were those who believed that it was premature to construct a high VSHHGUDLO$WWKDWWLPHVRPHVFKRODUVDUJXHGWKDWWKHVSHHGRIWKHH[LVWLQJWUDLQV OHGE\GLHVHOORFRPRWLYHVFRXOGEHLQFUHDVHGE\XSWRNPRQO\E\FKDQJLQJ WKHVHFWLRQVWKDWZHUHH[SHFWHGWREHFRPHFRQJHVWHGLQWRDGRXEOHWUDFNOLQHDQG E\UHQRYDWLQJWKHOLQHDQGWUDFNRIWKHH[LVWLQJ*\HRQJEX/LQH7KHNH\SRLQWRI WKLVDUJXPHQWZDVWKDWWKHPLGDQGORQJWHUPGHPDQGFRXOGEHFRYHUHGDQGWKH transportation time could be reduced even without promoting the high speed rail, which would require additional lines. Indeed, even those who subscribed to such argument agreed that there was a need to construct a high speed rail, but they argued

9 Chapter 1 10 e the e the k DERXWWKH LQWKHQH[W QFUHDVHRIWKH HYHORSHGRQO\ WZKLOHWKHKLJK ZKLFKZDVVWLOO 'DHMHRQVHFWLRQ VSHHGUDLOZRXOG ODQHH[SUHVVZD\ GWKDWZLWKUHJDUG jYLVWKRVHRIWKH KHHI¿FLHQF\RIWKH EHFRPPHUFLDOL]HG SFRPLQJDXWRPRELOH WLHVWR¿UVWLQYHVWLQ DQGLIWKDWKDSSHQV VWKHUDLOZD\ZRXOG GO\H[SDQGLQJDWWKDW SRUWDWLRQHI¿FLHQF\DQG P KDGDOUHDG\UHDFKHGLWVFDSDFLW\OLPLWDQGHYHQDIWHUWKHL N The second is the issue related to the vehicle type, a technical issue that vehicle type, a technical issue that The second is the issue related to the +RZHYHULQFDVHRIWKHUDLOZD\LWZDVDQDO\]HGWKDWWKH6XZRQ $WWKDWWLPHKRZHYHUWKHPDJQHWLFOHYLWDWLRQW\SHZDVEHLQJG generation type, should be introduced. This debate led to the argument that that This debate led to the argument generation type, should be introduced. SHQGLQJWKHFRPPHUFLDOL]DWLRQRIWKHPDJQHWLFOHYLWDWLRQWUDLQ EHLQJH[SHULPHQWHGRQDWWKDWWLPHWKHFRQVWUXFWLRQRIDKLJK rate of progress of the development of have to be postponed. Considering the method, which is not only slower than railway technologies, the wheel loader much noise and dust, unli the magneticlevitation type but also produces was debated the most. Some scholars argued that rather than the wheel loader that rather than the wheel loader argued was debated the most. Some scholars WKDWFRXOGEHLPPHGLDWHO\LQWURGXFHGDPDJQHWLFOHYLWDWLRQWUD RUDWUDGLWLRQDOGRXEOHOLQHUDLOZD\LWRIIHUHGVXSHULRUWUDQV rail would be constructed. therefore, the high speed time, using the available funding, rather than to construct a high speed rail, and to a high speed rather than to construct the available funding, time, using H[SDQGWKHDUWHULDOURDGVDPRQJUHJLRQVWRFRSHZLWKWKHWKHQX era.  UDLOZD\H[SDQVLRQDIWHUWKHHOHFWUL¿FDWLRQRIWKHH[LVWLQJOLQH UHDFKLWVFDSDFLW\OLPLWE\WR,WZDVGHWHUPLQHGWKD VSHHGUDLOZDVPRUHH[SHQVLYHWRFRQVWUXFWFRPSDUHGWRWKHIRXU WKHSXEOLFWUDQVSRUWDWLRQV\VWHPLQODUJHFLWLHVWKDWZHUHUDSL WKDWLWZRXOGEHPRUHUHDVRQDEOHFRQVLGHULQJLQYHVWPHQWSULRUL E\-DSDQDQG*HUPDQ\DQGWKHUHZHUHVRPHZKRZHUHSHVVLPLVWLF the economic performance possibility of its shortterm commercialization. Further, DQGWUDQVSRUWDWLRQFDSDFLW\RIWKHPDJQHWLFOHYLWDWLRQW\SHYLV ZKHHOORDGHUW\SHKDGQRWEHHQFRQ¿UPHG0RUHRYHURWKHUVDUJXH PDJQHWLFOHYLWDWLRQW\SHZRXOGVRRQEHUHSODFHGE\WKHODWWHU Therefore, as the type would be in vain. the investment made on the wheel loader FRQVWUXFWLRQRIWKHPDJQHWLFOHYLWDWLRQUDLOZD\ZDVH[SHFWHGWR at the longest, the construction of a high within two to three years, or by ten years VSHHGUDLOZRXOGKDYHWREHSRVWSRQHGDFFRUGLQJO\WRPD[LPL]HW investment. WRWKHIXWXUHVDIHW\LVVXHVRIWKHV\VWHPHYHQLIWKHPDJQHWLFOHYLWDWLRQW\SHZDVWR EHFRPPHUFLDOL]HGWKHZKHHOORDGHUW\SHZRXOGVWLOOEHPRUHDSSURSULDWH:LWKWKLV the debate ended.

Third, some scholars argued that regardless of the timing or technical aspect of the SURMHFWFRQVWUXFWLQJDKLJKVSHHGUDLORQWKH*\HRQJEXFRUULGRUZRXOGDJJUDYDWH WKHDOUHDG\FRQFHQWUDWHGSRSXODWLRQDQGLQGXVWU\RQWKH*\HRQJEX&RUULGRU Furthermore, the reduction of the transportation time due to the introduction of a KLJKVSHHGUDLOZRXOGZRUVHQWKHFRQFHQWUDWLRQRQWKH6HRXO0HWURSROLWDQ$UHD Such argument was made even more strongly by those who supported balanced UHJLRQDOGHYHORSPHQWEDVHGRQWKHFDVHRI-DSDQWRZKLFKDKLJKVSHHGUDLOKDG been introduced.

Those who supported the construction of a high speed rail, however, argued that LIWKHDOUHDG\VDWXUDWHG*\HRQJEX&RUULGRUVXIIHUHGIURPWKHVHYHUHUFRQJHVWLRQV it would devastate the national economy, or that the development of railway station VSKHUHVLQWKHUHJLRQVZKHUHWKHVWDWLRQRI*\HRQJEX+LJKVSHHGUDLOZHUHWREH built would lead to balanced development in the regional economy.

)RXUWKMXVWEHIRUHWKH'HFHPEHUSUHVLGHQWLDOHOHFWLRQWKHFRQVWUXFWLRQRI *\HRQJEX+LJK6SHHG5DLOZDVFRQVLGHUHGDSXEOLFSOHGJH7KXVVRPHDUJXHG that the fact that the project was being pushed forward although it was not really urgent, or that the construction was to be carried out when the detail design had not EHHQFRPSOHWHGDQGWKHORFDWLRQVRIWKHXQGHUJURXQGRURQWKHJURXQGVWDWLRQVKDG not been determined, showed that the project was merely being used for political purposes.

'HVSLWHVXFKFULWLFLVPVWKHFRQVWUXFWLRQRI*\HRQJEX+LJK6SHHG5DLOZDV strongly promoted by the government. For three years, from 1989 to 1991, a technical survey was conducted in relation to the project. Many public and private VHFWRUVSDUWLFLSDWHGLQFOXGLQJFRQFHUQHGQDWLRQDOSROLF\UHVHDUFKLQVWLWXWHVDQG 6RXWK.RUHDQUDLOZD\WHFKQRORJ\UHODWHGHQJLQHHULQJFRPSDQLHVWKLVWHFKQLFDO survey reviewed all the technical conditions related to the construction and operation of a high speed rail, such as the alignment planning, engineering structure, railway tracks, vehicle type, vehicle dynamics, train operation, power transmission and

11 Chapter 1  DQGHQYLURQPHQWDO EX+LJK6SHHG5DLO

Highway and Railway Network(1988) and Railway
Highway WUDQVIRUPDWLRQHOHFWULFUDLOZD\OLQHVLJQDODQGFRPPXQLFDWLRQ impact, and completed the basic and detail design of the high speed rail. Based on of the high speed rail. and detail design completed the basic impact, and WKHUHVXOWVRIWKHWHFKQLFDOVXUYH\WKHFRQVWUXFWLRQRI*\HRQJ VWDUWHGLQ-XQH Chapter 2. Estabishment of the Project Plan and the Implementation System

1. Establishment of the Project Plan

1.1 Execution of the Technical Survey 2YHUYLHZ

2Q-XO\WZRPRQWKVDIWHUWKHGHFLVLRQZDVPDGHWRLQFOXGHWKHWHFKQLFDO VXUYH\SROLF\IRUWKHFRQVWUXFWLRQRI*\HRQJEX+LJK6SHHG5DLOLQWKH6L[WK)LYH

$VVKRZQLQ 7DEOH!VL[FRPSDQLHVIURPDUHDVSDUWLFLSDWHGLQWKH WHFKQLFDOVXUYH\DQGWKHVXUYH\H[DPLQHGDOOPDWWHUVUHODWHGWRHDFKDUHD7KH main contents of the survey included analysis of the transportation demand and economic feasibility, route selection and review of the station location selection alternatives, review of the performance and technical aspects of foreign high speed UDLOVSUHSDUDWLRQRIDELGSURSRVDO GUDIW IRUYHKLFOHW\SHVHOHFWLRQLQYHVWPHQWDQG operation plans for the high speed rail, and the basic design in each area, such as civil engineering, electricity, signal, etc.

 Chapter 2  VLGHUDEOH LHQFHVDQGWKH *\HRQJEX+LJK WKHV\PSRVLXP EOLVKLQJQDWLRQDO VDZWKHWHFKQLFDO DWLRQVHVWDEOLVKLQJ ROOHFWHGEDVLFGDWDRQ KRETA U.S. company ³,QWHUQDWLRQDO6\PSRVLXPRQ+LJK6SHHG N QHVVHV RIHDFKFRXQWU\¶VKLJKVSHHGUDLOV\VWHP N

Technical-Survey Service Related Agencies by Area Agencies Service by Related Technical-Survey 2-1>

The design criteria of the high speed rail was set in a way that would make it suit South Korea’s topology, by considering the design criteria of the UIC and foreign KLJKVSHHGUDLOV\VWHPVDVIROORZV ‡ $UDLOZD\RQZKLFKGLHVHOORFRPRWLYHVFDQUXQE\FRQVLGHULQJWKHFRQQHFWLRQ ZLWKWKHH[LVWLQJUDLOZD\ ‡ $UDLOZD\WKDWZLOODOORZGLUHFWRSHUDWLRQZLWKWKH6RXWK1RUWK.RUHDVDQGWKH (XUDVLDQUDLOZD\WKURXJK&KLQDLQWKHIXWXUH ‡ $UDLOZD\WKDWZLOODOORZIXWXUHVSHHGLPSURYHPHQWE\FRQVLGHULQJWKHJOREDO WUHQGRIWKHKLJKVSHHGUDLOWHFKQRORJLFDOGHYHORSPHQWDQG ‡ $UDLOZD\RQZKLFKWKHYHKLFOHVIURP-DSDQ)UDQFHDQG*HUPDQ\FDQEHUXQ

These codes were proposed as the conditions for selecting the vehicle type so that whichever country was chosen to supply the vehicles could take comfort from these codes and would produce vehicles that would be appropriate for South Korea, thus guaranteeing connectivity between the vehicles and railways.

%DVLF'LUHFWLRQRIWKH9HKLFOH&RGHV

7KHPD[LPXPVSHHGRIWKHYHKLFOHRQ*\HRQJEX+LJK6SHHG5DLOZDVVHWDW NPKEHFDXVHLWZDVGHWHUPLQHGWKDWWKLVVSHHGZDVPRVWHFRQRPLFDODQGHI¿FLHQW LIWKHUHZHUHWZRWRIRXUVWDWLRQVLQWKHNP]RQHEHWZHHQ6HRXODQG%XVDQ Moreover, the plan was to operate localized vehicles after the technology transfer of RQHRIWKHWKUHHYHKLFOHVWKDWKDGDOUHDG\EHHQGHYHORSHG7KHPD[LPXPVSHHGRI WKHKLJKVSHHGUDLOV\VWHPVWKDWZHUHDOUHDG\LQRSHUDWLRQZDVNPK

Considering the energy consumption, maintenance and repair, and passengers’ FRPIRUWOHYHOZKLOHHQVXULQJWKDWWKHYHKLFOHVUXQDWWKHLUPD[LPXPVSHHGDQG safely, the high speed rail system followed the construction codes that ensured the FRQVWUXFWLRQRIDUDLOZD\V\VWHPDSSURSULDWHIRUWKHGHVLJQVSHHGRINPK

%DVHGRQWKHWHFKQRORJLFDOGHYHORSPHQWWUHQGLQWKHZRUOGDQGWKHFXUUHQW WHFKQRORJLFDOOHYHOKLJKVSHHGYHKLFOHVIURP-DSDQ)UDQFHRU*HUPDQ\ZKLFK allow South Korean companies to receive technology transfer by phase, were

 Chapter 2  ing k JLHVZRXOGEH [HFXWHGXVLQJ VFRXQWUDWHWKH RPLFSHUIRUPDQFH GIRUIUHLJKW WFRVWUDWLR RVHGDWRWDOV\VWHP RXOGEHVXLWDEOHIRU HRQJEX([SUHVVZD\ UDLQFRQWUROHOHFWULF HQH¿WFRVWUDWLRDQGD  ing, and architecture were to be ing, and architecture were to be k The results of the technical survey showed that the total transportation increase that the total transportation increase The results of the technical survey showed )LQDOO\DFFHSWLQJWKHRSLQLRQWKDWWKHFRQVWUXFWLRQFRXOGEHH :KHQWKHGLVFRXQWUDWHZDVVHWDWWKHDQDO\VLVRIWKHHFRQ To cope with the difficulties in maintaining the interface of a high speed rail the interface of a high speed rail in maintaining with the difficulties cope To 7HFKQLFDO6XUYH\5HVXOWV 3URMHFW,PSOHPHQWDWLRQ'LUHFWLRQ chosen to improve the South Korean railway vehicle industry, particularly ma particularly vehicle industry, railway Korean the South to improve chosen its technical level reach the global level, and to eventually enable the manufacture enable the level, and to eventually level reach the global its technical should allow the vehicle to be chosen Moreover, in South Korea. of these vehicles IHZRUQRLVVXHVZKHQFRQQHFWHGWRWKHH[LVWLQJUDLOZD\DQGVK a large amount of transport at a high speed in South Korea, where the land is limited the land is limited in South Korea, where at a high speed amount of transport a large is very high. and the population density and that the railway between Suwon and Daejeon would reach the limit of its Daejeon would reach the limit of its and that the railway between Suwon and WUDQVSRUWDWLRQFDSDFLW\E\,WZDVDOVRGHWHUPLQHGWKDW*\ RIWKHKLJKVSHHGUDLOSURMHFWVKRZHGJRRGUHVXOWVEHQHIL ,55DQG.5:WULOOLRQQHWSUHVHQWYDOXH(YHQDWDQGL SURMHFWLVVWLOOGHHPHGWREHHFRQRPLFDOO\VRXQGZLWKDE UDWHIURPWRLVH[SHFWHGWREHIRUSDVVHQJHUVDQ that combines the technologies in all areas while others proposed that these be that these be in all areas while others proposed that combines the technologies and infrastructure technologies. categorized into core due to chronic congestion. was already not performing to its full capacity .5:ELOOLRQQHWSUHVHQWYDOXH V\VWHPVRPHRI¿FLDOVLQWKH1DWLRQDO5DLOURDG$VVRFLDWLRQSURS domestic technologies, civil engineering, trac domestic technologies, civil engineering, H[HFXWHGXVLQJ6RXWK.RUHDQWHFKQRORJLHVZKLOHIRUHLJQWHFKQROR LQWURGXFHGDVFRUHWHFKQRORJLHVVXFKDVKLJKVSHHGYHKLFOHVW which have yet to be developed in vehicle lines, and train wireless communication, it is transfer and domestic production, however, Through technology South Korea. H[SHFWHGWKDWWKHVHWHFKQRORJLHVZLOOEHDFTXLUHGLQWKHIXWXUH 7KHFRVWEHQH¿WDQDO\VLVVKRZHGWKDWDQDQQXDOVXUSOXVZRXOGUHVXOWZLWKLQVHYHQ \HDUVDIWHUWKHVWDUWRIWKHV\VWHP¶VRSHUDWLRQDQGZKLOHWKHPD[LPXPDFFXPXODWHG GHEWLQZDVWRUHDFK.5:WULOOLRQWKLVFRXOGEHDGHTXDWHO\SDLGWKURXJK the fare revenues during the system’s operation.

6HOHFWLQJWKH5RXWH

7KHFULWHULDIRUURXWHVHOHFWLRQZHUHWKHPD[LPXPVSHHGRIWKHWUDLQWKHORFDWLRQ of the station, the environmental conditions, the natural conditions, the level of FRQVWUXFWLRQGLI¿FXOW\WKHPDLQWHQDQFHDQGUHSDLUFRQWUROWKHDOLJQPHQWFRQGLWLRQV and the economic performance.

For the route alternative analysis, a total of 108 alternatives were constructed by FRPELQLQJURXWHDOWHUQDWLYHVWKUHHVWDWLRQDOWHUQDWLYHVDQGWKUHHPD[LPXP VSHHGDOWHUQDWLYHV$PRQJWKHVHDOWHUQDWLYHVDOWHUQDWLYHVZHUHVHOHFWHGDQGZHUH EURDGO\HYDOXDWHGEDVHGRQ L FRQYHQLHQFH VDYLQJWLPHRUYHKLFOHWUDLQRSHUDWLRQ FRVWV DQG LL FRVW FRQVWUXFWLRQFRVWKLJKVSHHGUDLOIDFLOLW\PDLQWHQDQFHDQG UHSDLUFRVWHQHUJ\FRVWODERUFRVWHWF 7KHUHVXOWVVKRZHGWKDWDWNPKWKH PD[LPXPVSHHGWKHHI¿FLHQF\ZDVEHWWHUZKHQWKHQXPEHURILQWHUPHGLDWHVWDWLRQV ZDVVPDOOHU IRXURUOHVV UHVXOWLQJLQWKHIROORZLQJHLJKWSRWHQWLDOURXWHSODQV ‡ 6HRXO±'DHMHRQ±'DHJX±%XVDQ -XQJEX5RXWHWZRLQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±'DHJX±%XVDQ -XQJEX5RXWHWKUHHLQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±'DHMHRQ±'DHJX±8OVDQ±%XVDQ 'RQJEX5RXWHWKUHHLQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±'DHJX±0LU\DQJ±%XVDQ -XQJEX5RXWHIRXU LQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±'DHJX±8OVDQ±%XVDQ 'RQJEX5RXWHIRXU LQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±*LPFKHRQ±'DHJX±%XVDQ -XQJEX5RXWHIRXU LQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±'DHJX±*\HRQJMX±%XVDQ 'RQJEX5RXWHIRXU LQWHUPHGLDWHVWDWLRQV ‡ 6HRXO±&KHRQDQ±'DHMHRQ±'DHJX±*\HRQJMX±%XVDQ LQWDQGHPZLWKWKH 'RQJKDHQDPEX5RXWH'RXEOH7UDFN3URMHFW

7ZRLVVXHVZHUHGHEDWHGRQZKLOHVHOHFWLQJWKHURXWH  ZKHWKHUWRVWUDLJKWHQ

 Chapter 2 18 PHGLDWH RDOWHUQDWLYHV WKHEDVLFSODQ URXWH:KLOHLWV HVZKLOHVWRSSLQJ ZKLFKKDGWZR HGDQGDQQRXQFHG WKHWUDQVSRUWDWLRQ UFKDVHDVRI HDQG  ZKHWKHU QLQJDFFXPXODWHG 'DHJX*\HRQJMX URPWKHHFRQRPLF KHWKLUG+LJK6SHHG DOWHUQDWLYH YLL @LIDQ P WXQQHOV N PK N 6WDWLRQV surplus ten years after the opening DWWZRVWDWLRQV For the selection of the route in the basic project plan, the eight potential route For the selection of the route in the basic project plan, the eight potential route Based on the technical survey conducted beginning in 1989, the basic plan was the basic plan was survey conducted beginning in 1989, Based on the technical ‡ 5RXWH6HRXO&KHRQDQ'DHMHRQ'DHJX*\HRQJMX%XVDQ )RXU,QWHU ‡ 0D[LPXPGHVLJQVSHHG ‡ 5XQQLQJKRXUVPLQXWHVIRUWKHGLUHFWRSHUDWLRQ PLQXW ‡ 8VDJHGHPDQGSDVVHQJHUVGD\ ‡ )LQDQFLDOVWDELOLW\$QQXDOVXUSOXVWKUHH\HDUVDIWHUWKHRSH ‡ 3URMHFWWHUP ‡ &RVW.5:WULOOLRQ .5:WULOOLRQIRUYHKLFOHSX ‡ 5RXWHH[WHQVLRQ6HRXO%XVDQ 'HWHUPLQDWLRQRIWKH%DVLF5RXWH %XVDQ ZDVVHOHFWHGLQWKHWHFKQLFDOVXUYH\LQ 1.2 Initial Project Plan 1.2 Initial Project 3URMHFW3ODQ GHPDQGDQGDGGLQWHUPHGLDWHVWDWLRQVZKLOHOHQJWKHQLQJWKHURXW WRDGG0LU\DQJ6WDWLRQ>DOWHUQDWLYH LY @RU*\HRQJMX6WDWLRQ> IHDVLELOLW\DQDO\VLVDOWHUQDWLYH YLLL  6HRXO&KHRQDQ'DHMHRQ WKHURXWHDQGPLQLPL]HWKHLQWHUPHGLDWHVWDWLRQVRUWRPD[LPL]H additional station was to be created. additional regions and beneficiary high speed rail construction the scope of the Considering WKHLVVXHVUHODWHGWRWKHFRQVWUXFWLRQWHFKQRORJLHVUHVXOWLQJI SODQVHVWDEOLVKHGLQWKHWHFKQLFDOVXUYH\ZHUHUHYLHZHGDQGWZ DOWHUQDWLYHV L DQG YLLL ZHUHVKRUWOLVWHG$OWHUQDWLYH L  LQWHUPHGLDWHVWDWLRQV 'DHMHRQDQG'DHJX RIIHUHGWKHVWUDLJKW 5DLO 1HZ,QWHUQDWLRQDO$LUSRUW&RQVWUXFWLRQ3URPRWLRQ&RPPLWWHH HVWDEOLVKHGDQGRQ-XQHEDVHGRQWKHUHVROXWLRQRIW DQGURXWHRIWKH*\HRQJEX+LJK6SHHG5DLO3URMHFWZHUHGHWHUPLQ as shown below. UXQQLQJWLPHZDVVKRUWHULWVWXQQHOH[WHQVLRQZDVORQJHUGXHWRWKHWRSRORJ\ and compared to the size of the investment, the beneficiary regions were limited. $OWHUQDWLYH YLLL ZKLFKKDGIRXULQWHUPHGLDWHVWDWLRQVLQFOXGLQJWKH*\HRQJMXDQG &KHRQDQVWDWLRQVRIIHUHGJRRG¿QDQFLDOVWDELOLW\GXHWRLWVLPSURYHPHQWRIWKHKLJK VSHHGUDLOXVDJHUDWHDVLWLQFOXGHV*\HRQJMXDPDMRUFXOWXUDOKHULWDJHDQGWRXULVW DWWUDFWLRQDQG8OVDQDQG3RKDQJWZRNH\LQGXVWULDODUHDVDVZHOODV&KRHQDQ which has a huge transportation demand. It meant, however, that the route would be VOLJKWO\GLYHUWHG)LQDOO\DOWHUQDWLYH YLLL ZDVVHOHFWHGDVLWFRXOGLQFUHDVHWKHKLJK speed rail usage rate.

Comparison of Two Short-Listed Route Alternatives in the Basic Plan

Alternative (i) Alternative (viii) Alternative Seoul-Cheonan-Daejeon- Review Seoul-Daejeon-Daegu-Busan Daegu--Busan Distance 387 km 409 km (changed to 412 km) Topology Tunnel 48% 42% Direct: 1 hour 26 minutes Direct: 1 hour 30 minutes Running time (two stops: 1 hour 37 minutes) (two stops: 1 hour 41 minutes) Transport demand 192,000 passengers/day 218,000 passengers/day Cost KRW 4.4267 trillion KRW 4.6318 trillion Annual surplus: after five years Annual surplus: after three years Financial stability Accumulated surplus: Accumulated surplus: after 13 years after ten years Shortest-distance route Will accommodate Limited beneficiary regions the Cheonan and Gyeongju tourists Characteristics considering Will improve the usage rate the investment size Needs to divert a bit Source: Korea Rail Network Authority (2011) Note: Additional KRW1.2144 trillion for vehicle purchase

6WDWLRQ/RFDWLRQV

In the process of determining the stations, the locations were a delicate issue, ZKHUHWKHORFDOJRYHUQPHQWV¶DQGUHVLGHQWV¶LQWHUHVWVVKRZHGVKDUSFRQÀLFWV6RPH local governments or residents did not want the route to include their region due to the noise or environmental pollution that may be caused by the high speed rail and the damage to various resources, including cultural assets, that may be caused by the construction of the station and the route. Most of them, however, admitted that establishing a station in their region would promote the development of their local

19 Chapter 2  RQWKHFRQVWDQW KHHIIHFWRIWKH IRUWKHUHYLVLRQV +LJK6SHHG5DLO H[LVWLQJUDLOZD\ WKHXQGHUJURXQG DFRUHPHWKRGFRGH ZRXOGEHIROORZHG SODQDQG  WKHXQLW WZDVGHWHUPLQHGWKDW LQFRQVWUXFWLQJWKHFRXQWU\¶VILUVWKLJKVSHHGUDLOZDVWKH N ey issues that were debated when the locations of the stations were were of the stations locations when the debated that were ey issues k et price from 1989 to the early 1990s. This cost calculation, however, was was This cost calculation, however, et price from 1989 to the early 1990s. k 7KHLQLWLDOFRVWRIWKHSURMHFWZDV.5:WULOOLRQEDVHG 6LQFHWKHGHWHUPLQDWLRQRIWKHEDVLFSODQLQWKH*\HRQJEX 2QHLPSRUWDQWWDV )LUVW5HYLVLRQRIWKH3URMHFW3ODQ -XQH 1.3 Revisions of the Project Plan 1.3 Revisions of the Project 'HVLJQ&ULWHULD economy. Some Some economy. new for creating and developing of strong bases were the formation being selected FLWLHVFRQYHQLHQFHLQWKHXVHRIWKHV\VWHPLQWKHFLW\ 6HRXO VWDWLRQVDQGWKHLUFRQVWUXFWLRQFRVW 'DHMHRQDQG'DHJX DQGW FRQVWUXFWLRQRQWKHUHJLRQ¶VFXOWXUDODVVHWV *\HRQJMX  price increased due to the construction delay. Besides such big changes, other minor Besides price increased due to the construction delay. and changes in construction technologies design changes caused by local complaints continued throughout the term.  WKHUHZHUHFRQVLVWHQWORFDOFRPSODLQWVUHJDUGLQJWKHEDVLF mar EDVHGRQWKHPHWKRGRIDGGLQJH[WUDFRVWE\DIL[HGUDWHWRWKH WKHFRVWZRXOGLQFUHDVHFRQVLGHUDEO\LIWKHRULJLQDOURXWHSODQ creation of design criteria. For this, the government referred to the design criteria to the design criteria For this, the government referred creation of design criteria. and South Korean countries and sought the help of foreign of the UIC and other the goal of cultivating teams.It is noteworthy that in setting specialists and technical WHFKQLFDOFRPSHWHQF\WKURXJKWKHSURMHFWWKHSURMHFWVHOHFWHG core technologies from government chose to introduce only the which meant that the use of the South Korean technologies for the advanced countries and to promote the the totalmethod code, based on which all the other aspects of the project, instead of the advanced countries and South Korea the required technologies would come from would only manage the project. 3URMHFWKDVJRQHWKURXJKWZRPDMRUUHYLVLRQV7KHPDLQUHDVRQV ZHUHDVIROORZV  DIWHUWKHFRQVWUXFWLRQRIWKHWHVW]RQHL construction cost due to the limited data available on the high speed rail construction, and therefore, it was somewhat unreasonable from the beginning to consider this cost accurate.

)RUH[DPSOHLQWKHVWKHVXEEDVHFRXUVHFRQVWUXFWLRQZDVHVWLPDWHGWREH WLPHVWKHXQLWFRVWRIWKHH[LVWLQJOLQHZKLOHWKHWUDFNLQJZDVHVWLPDWHGWR EHWKHVDPHDVWKDWRIWKHSROHUDLOLQJIRUWKHH[LVWLQJUDLOZD\$OVRWKHDYHUDJHXQLW SULFHRI6KLQNDQVHQLQ-DSDQ7*9LQ)UDQFHRU,&(LQ*HUPDQ\ZDVDSSOLHGWRWKH cost of the signal communication facilities. Therefore, more accurate cost estimation had to be done when the actual construction had progressed to a certain point. It was DIWHUZKHQWKH&KHRQDQ'DHMHRQ7HVW=RQH NP ZDVFRPSOHWHGWKDWWKH actual and realistic estimation of the construction cost became possible.

a. Necessity of revising the plan 7KHFRQVWUXFWLRQFRVWRIWKHKLJKVSHHGUDLOSURMHFWFRQ¿UPHGE\WKHGHWDLOGHVLJQ DQGDFWXDOFRQVWUXFWLRQRIWKHVXEEDVHFRXUVHFRQVWUXFWLRQWUDFNLQJDQGVLJQDO communication facilities, was considerably higher than the originally estimated FRVW$GGLWLRQDOO\WKHPDUNHGLQFUHDVHRIWKHFRQVWUXFWLRQFRVWLQFOXGLQJWKHODERU and material costs, from the time when the basic plan was drafted became a key reason for the drastic increase of the overall cost. To resolve the two issues regarding WKHEDVLFSODQ WKHHUURULQWKHHVWLPDWLRQDQGWKHPDUNHWSULFHLQFUHDVH WKH¿UVW revision of the plan was carried out.

The problem did not end there. Besides simple errors in the estimation, the revision RIWKHSODQLWVHOIZDVLQHYLWDEOH7KHWRWDOURXWHOHQJWKLQFUHDVHGIURPNPE\ RYHUNPGXHWRWKHGLYHUWLQJURXWHWR2VRQJ6WDWLRQ NP WKHGLYHUWLQJURXWH GXHWRWKHSURWHFWLRQRIFXOWXUDODVVHWVLQ*\HRQJMX NP DQGWKHGLYHUWLQJURXWH GXHWRWKHFLW\SODQLQ

$VVXFKFRQVLGHULQJWKHRYHUDOOFKDQJHVWKDWZHUHPDGHWRFRPSHQVDWHIRUWKH HUURUVLQWKHHVWLPDWLRQWKHUHÀHFWLRQRIWKHPDUNHWSULFHLQFUHDVHDQGWKHH[WHQVLRQ RIWKHURXWHWKHWRWDOFRVWZDVUHHVWLPDWHGWREH.5:WULOOLRQRYHUWZLFH the original cost estimated, if the original construction term was to be maintained VRWKDWWKHSURMHFWZRXOGEHFRPSOHWHGLQ,QWKHUHYLVHGFRVWRIWKH

 Chapter 2  EHWZHHQ WKHWUDLQVDW DHMHRQ=RQH LUWRIWKH6HRXO RDJURXQGOHYHO N V &KHRQDQ'DHMHRQ OGEHFRPPHUFLDOO\ .5:WULOOLRQ D\FDSDFLW\EHWZHHQ URXQGDQGPD[LPXP VLRQZDVPDGHLQWKH WKUHHPRUH\HDUVDQG FDSDFLW\$FFRUGLQJO\ IWKHFRVWDQGWHUPZDV VHFWLRQZDVFRQVLGHUHG N HWSULFHLQFUHDVHZKLOHZDVIURP N P WKHDGMXVWPHQWRIWKHEORF N P ZDVWREHUHVROYHGE\UHGXFLQJWKHVHUYLFHVLQWKHH[LVWLQJ N VHFWLRQIURPWRP %HVLGHV6HRXOWKHRULJLQDO Station. The issue of the railway capacity due to the revision to the revision The issue of the railway capacity due Station. N 6WDWLRQ  k N b. Key revised contents b. Key revised cost. First, it was was the plan to cut down the investment The focus of the revision a. Necessity of the revision $IWHUWKH¿UVWUHYLVLRQRIWKHSODQLQIXUWKHUUHYLVLRQR 7HVWVHFWLRQKRZHYHUZDVWREHFRPSOHWHGE\DQG6HRXO' XQGHUJURXQGVHFWLRQSODQLQ'DHMHRQDQG'DHJXZDVFRQYHUWHGLQW plan of the vehicle maintenance depot, the plan, and by postponing the construction WRWDOLQYHVWPHQWFRVWZDVUHGXFHGIURP.5:WULOOLRQWR the increase of alleviate the annual investment load, which increased along with To WKHWRWDOSURMHFWFRVWWKHFRQVWUXFWLRQWHUPZDVH[WHQGHGIRU WKHUHIRUHLWZDVSODQQHGWKDWWKHSURMHFWEHFRPSOHWHGE\ E\WKHHQGRIVRWKDWDVRIWKHKLJKVSHHGUDLOFRX operated. In the revision, every effort was made to follow the original objectives of operated. In the revision, every effort the plan. 6HFRQG3URMHFW5HYLVLRQ -XO\ XQGHUJURXQG]RQHSODQEHWZHHQ6HRXODQG*ZDQJP\HRQJ6WDWLRQDQG Seoul and Susae UHGXFLQJWKHEORF WKHLQFUHDVHLQWKHLQYHVWPHQWFRVWGXHWRWKHLQFUHDVHLQWKH XVHRIWKHH[LVWLQJIDFLOLWLHVZDVSODQQHG$FFRUGLQJO\DUHYL increase was from the changes that were made to compensate for the errors in the the errors for to compensate were made that the changes was from increase HVWLPDWLRQDQGWKHUHIOHFWLRQRIWKHPDU SODQQHGWKDWWKHXQGHUJURXQGIDFLOLWLHVEHFRQVWUXFWHGRQWKHJ as the revision was being made, further revisions were made on some zones, and zones, and were made on some further revisions was being made, as the revision the station and confirmation of construction term adjustment of the reasonable ORFDWLRQVZHUHGRQHWRPD[LPL]HWKHFRVWVDYLQJV UDLOZD\ 6DHPDHXODQG0XJXQJKZD DQGIUHLJKWWUDLQV7RKDQGOH 6HRXO6LKHXQJ project, the starting and ending trains were Seoul Station, the for the WREHDOVRDOORWWHGWR*\HRQJP\HRQJ6WDWLRQORFDWHGLQWKHRXW 0HWURSROLWDQ$UHDDQGWRFRSHZLWKWKHOLPLWDWLRQRIWKHUDLOZ 6HRXODQG6XVDH inevitable due to the underground construction in Daejeon and Daegu, the changes in WKHSODQGXHWRORFDOFRPSODLQWV HJWKHFKDQJHVLQWKH*\HRQJMXURXWH WKHPDUNHW SULFHLQFUHDVHDQGWKHFKDQJHVLQWKHGHVLJQ$FFRUGLQJO\WKHJRYHUQPHQWSURSRVHG DGUDIWRQWKHUHYLVLRQRIWKHEDVLFSODQLQ1RYHPEHU:KLOHWKHWDONVEHWZHHQ the concerned organizations were in progress, some drastic changes occurred in the SURMHFWLPSOHPHQWDWLRQHQYLURQPHQWVXFKDVWKHIRUHLJQH[FKDQJHFULVLVDQG the establishment of a new government in 1998, which led to the full revision of the project.

,Q$SULODIWHUWKHHVWDEOLVKPHQWRIDQHZJRYHUQPHQWDMRLQWIRUFHWDVNWHDP consisting of the Ministry of Construction and Transportation, KTX, and Korea 1DWLRQDO5DLOURDGZDVIRUPHGWRUHYLHZWKHFRVWDQGWKHSURMHFW$OVRDQDVVHVVPHQW DGYLVRU\FRPPLWWHHFRQVLVWLQJRIVSHFLDOLVWVLQHFRQRPLFVMRXUQDOLVP WUDQVSRUWDWLRQDQGFLYLOHQJLQHHULQJDPRQJRWKHUVFRQGXFWHGDQLQGHSWKDQDO\VLV RIWKHSURMHFWDQGDIWHUWKHIHDVLELOLW\DVVHVVPHQWDQGDGYLVRU\PHHWLQJVWKH6RFLDO 2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHHUHYLVHGWKHEDVLFSODQRQ -XO\FRQVLGHULQJWKHGLUHHFRQRPLFFRQGLWLRQVWKHQ

b. Key revised contents The key contents of the second revision maintained the framework of the original plan in consideration of the consistency of the government’s policies and the WUDQVSRUWDWLRQLVVXHVUHJDUGLQJ*\HRQJEX/LQHZKLOHDLPLQJWRDGMXVWWKHFRVW DQGWKHFRPSOHWLRQWLPHE\GLYLGLQJWKHZKROHVHFWLRQLQWRVHFWLRQVLQWKH¿UVWDQG VHFRQGSKDVHVLQFRQVLGHUDWLRQRIWKHWKHQGLUHHFRQRPLFFRQGLWLRQV$FFRUGLQJO\ WKHRULJLQDOFRPSOHWLRQGDWHIRUWKHZKROHVHFWLRQZDVUHYLVHGVRWKDWWKH ILUVWSKDVHSURMHFWZRXOGFRPSOHWHWKHQHZKLJKVSHHGUDLOZD\EHWZHHQ6HRXO DQG'DHJXDQGWUDQVIRUPWKHH[LVWLQJUDLOZD\EHWZHHQ'DHJXDQG%XVDQDVZHOO as the downtown section in Daejeon and Daegu and the section between the two FLWLHVLQWRDQHOHFWULFDOUDLOZD\DQGZRXOGFRPSOHWHWKHSURMHFWE\$SULO7KH VHFRQGSKDVHSURMHFWZRXOGFUHDWHDQHZKLJKVSHHGUDLOEHWZHHQ'DHJXDQG%XVDQ transform the downtown of Daejeon and Daegu into an underground railway, use the H[LVWLQJUDLOZD\EHWZHHQ6HRXODQG*ZDQJP\HRQJ6WDWLRQDQGFUHDWHDGLYHUWLQJ route in the Sangni Tunnel section, which had been controversial as the original SODQZDVWRJRWKURXJKDFORVHGFRDOPLQH$VVXFKWKHSURMHFWVKRXOGKDYHEHHQ FRPSOHWHGE\

 Chapter 2  WKHFLYLO VWGRXEOHG WLRQDWWKHWLPH DQGRSHUDWHGLQ ZDVPDLQWDLQHG QGVHFRQGSKDVH DWLYHZKLFKZDV SOHWHGLQWKH¿UVW KLQWKHVFRSHWKDW EDVHGRQWKHGLUH Q -XQH WR REHSRVWSRQHGWR RZHYHUZRXOGXVH WKDWGLYHUWVIURPWKH Q'DHMHRQDQG'DHJX WKHRULJLQDOSODQ $QRWKHUUHDVRQIRUWKHUHYLVLRQZDVWKDWWKHHVWLPDWHGWRWDOFR $VWKHSURMHFWSODQZDVFKDQJHGLQWRDWZRSKDVHSODQVRPHRI &RQYHUWLQJWKHRULJLQDOSODQLQWRDWZRSKDVHSODQZDVVWURQJO\ condition of the government’s budgets, which made it impossible to concentrate to concentrate which made it impossible budgets, of the government’s condition JRYHUQPHQWLQYHVWPHQWRQWKHSURMHFWLQDVVWLSXODWHGLQ IURP.5:WULOOLRQWKHFRVWHVWLPDWHGLQWKHILUVWUHYLVLR .5:WULOOLRQLQFRPELQLQJWKHFRVWVRIWKHILUVWD would be made huge increase in the cost, even if the investment projects. Due to the never be completed by investment plan, the project would as planned in the yearly DVSURMHFWHG$OVRFRQVLGHUHGZDVWKHGLUHHFRQRPLFFRQGL ZKLFKPDGHDGGLWLRQDO¿QDQFLDOLQYHVWPHQWLPSRVVLEOH7KXVZLW WKH¿UVWSKDVHE\DQGWKHFRPSOHWLRQRIWKHSURMHFWZDVW  FRPSODLQWVZHUHUHVROYHG3DUWLFXODUO\WKHXQGHUJURXQGURXWHL ZDVSXVKHGWRWKHVHFRQGSKDVHSURMHFWZKLOHWKHRULJLQDOSODQ ZKHUHDVWKH*\HRQJMXURXWHZDVGHWHUPLQHGWREHWKH¿QDODOWHUQ WKH+ZDFKHRQULVHFWLRQ$OVRIRUWKH6DQJQLVHFWLRQWKHURXWH WKHH[LVWLQJURXWHDVFRQ¿UPHGLQWKH¿UVWUHYLVLRQ WKHEXGJHWDOORZHGWKH6HRXO'DHJXVHFWLRQZDVWREHFRPSOHWHG XQVWDEOHJURXQGUHJLRQGXHWRWKHPLQLQJZDVGHWHUPLQHGDQGFRP SKDVHSURMHFW7KH6HRXO6WDWLRQ*ZDQJP\HRQJ6WDWLRQVHFWLRQK

Comparison of the Revisions of the Basic Project Plan

Basic Plan Second Revision (July 31, 1998) First Revision Category Established (June 14, 1993) (June 14, 1990) First Phase Second Phase Seoul- Cheonan- Seoul-Cheonan- Seoul-Cheonan- Seoul-Cheonan- Route Daejeon- Daegu- Daejeon-Daegu- Daejeon-Daegu- Daejeon-Daegu- Gyeongju- Busan Gyeongju-Busan Busan Gyeongju-Busan Distance 409 km 430.7 km 409.8 km 412 km Aug. 1991- June 1992- June 1992- May 2004- Term Aug. 1998 May 2002 April 2004 Oct. 2010 KRW 12.7377 KRW 5.6891 Cost KRW 5.8426 trillion KRW 10.74 trillion trillion trillion Seoul, Seoul, · , Gwangmyeong, Cheonan, Gwangmueong, Cheonan, Cheonan, Daejeon, Cheonan, Daejeon, Daejeon, Daegu, Daejeon, Daegu, Daegu, Daegu, Gyeongju, Busan Gyeongju, Busan Gyeongju, Busan · Seoul Station: · Busan Using the Stations existing· Seoul Station · and the expansion · of Running time (Seoul-Busan) 101 minutes 124 minutes 160 minutes 116 minutes Vehicle 46 (foreign: 12; arrangement 46 46 domestic: 34) 46 · Government · Government Budget funding: 45% funding: 45% plan - · Other funding: · Other funding: - 55% 55% · Renovating and · Electrifying · Constructing using the existing and using the a new railway ground- level existing line for between Daegu Seoul, Daejeon, the sections and Busan and Daegu of Daegu and · Constructing Station Daejeon as well Gyeongju Major · Using the existing as the Daegu- Station revisions - Gyeongbu Line Busan section · Constructing between Seoul · Using the an underground and Anyang existing railway railway that will · Creating a between pass through new station for Seoul and Daejeon Gwangmyeong Gwangmyeong and Daegu downtowns Source: Korea Rail Network Authority (2011)

 Chapter 2 

The Route of Gyeongbu High Speed Rail of Gyeongbu
The Route 2. Revision of the Implementation System

2.1 Implementation Organizations

7KHPRVWUHSUHVHQWDWLYHLPSOHPHQWDWLRQRUJDQL]DWLRQVIRUWKH*\HRQJEX+LJK 6SHHG5DLO3URMHFWDUHWKH0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQ¶V+LJK6SHHG 5DLO&RQVWUXFWLRQ3ODQQLQJ7HDPWKH+LJK6SHHG5DLO&RQVWUXFWLRQ+HDGTXDUWHUV DW.RUHDQ1DWLRQDO5DLOURDG.RUHD+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\DQG 6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHH

7KH0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQ¶V+LJK6SHHG5DLO&RQVWUXFWLRQ 3ODQQLQJ7HDPRYHUVDZWKHHVWDEOLVKPHQWUHYLVLRQVDQGPDQDJHPHQWRIWKH SHUWLQHQWODZWKHHVWDEOLVKPHQW UHYLVLRQ DQGDQQRXQFHPHQWRIWKHEDVLFSODQ determining and planning other key policies related to the high speed rail project, DSSURYLQJRIWKHSURMHFWH[HFXWLRQSODQPDQDJLQJWKH+LJK6SHHG5DLO&RQVWUXFWLRQ 5HYLHZ&RPPLWWHHFDUU\LQJRXWRWKHUVXSSRUWLQJIXQFWLRQVIRU.RUHD+LJK6SHHG 5DLO&RQVWUXFWLRQ$XWKRULW\JXLGLQJDQGVXSHUYLVLQJ.RUHD+LJK6SHHG5DLO &RQVWUXFWLRQ$XWKRULW\DQGPHGLDWLQJDQGDGMXVWLQJWKHWDVNVEHWZHHQ.RUHDQ 1DWLRQDO5DLOURDGDQG.RUHD+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\

7KH+LJK6SHHG5DLO&RQVWUXFWLRQ+HDGTXDUWHUVDW.RUHDQ1DWLRQDO5DLOURDGZDV FRPPLVVLRQHGE\.RUHD+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\WRFRQGXFWWKH UHSDLUDQGHOHFWUL¿FDWLRQRIWKHH[LVWLQJUDLOZD\DQGIDFLOLWLHVLQWKHSURMHFW

.RUHD+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\QRWRQO\FRQGXFWHGWKHH[HFXWLRQ of the project but also performed the role of the project owner by establishing the H[HFXWLRQSODQDQGVXSSO\LQJIXQGLQJ

7KH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHHUHYLHZHG DQGPHGLDWHGWKHNH\SROLFLHV EDVLFSODQIXQGVXSSO\HWF LQUHODWLRQWRWKH construction of the high speed rail, and oversaw the task cooperation among the concerned departments, organizations, and local governments.

 Chapter 2  RIILFLDO 3ODQQLQJ 7HDPZDV 0LQLVWU\RI QL]DWLRQ ZDV \ P SHRSOH IRUWKHSURMHFW LHV Division Gyeongbu High Speed Rail Construction Plan and approving of the execution plan safety control tasks development tasks Construction Support ‡(VWDEOLVKLQJ ‡3URFHVVFRQWURODQG ‡7HFKQRORJ\FRRSDQG Route Division Honam High Speed Rail Basic Plan execution plan for the existing railway utilization operation of Gyeongbu High Speed Rail Construction Planning ‡(VWDEOLVKLQJWKH ‡$SSURYLQJRIWKH ‡3UHSDUDWLRQRIWKH Division

Three Divisions of High Speed Rail Construction Planning Team High Speed Rail policies related to the high speed rail laws, and systems funding procurement supervising the Authority ‡'HWHUPLQLQJWKHNH\ ‡0DQDJLQJEXGJHWV ‡7DVNVUHODWHGWR ‡*XLGLQJDQG VDQGIXQFWLRQV N 7HDPZDVH[SDQGHG SHRSOHLQWKUHHGLYLVLRQV &RQVWUXFWLRQDQG7UDQVSRUWDWLRQ¶V+LJK6SHHG5DLO&RQVWUXFWLRQ RUJDQL]DWLRQ  SHRSOH HVWDEOLVKHG SHRSOHLQWZRGLYLVLRQV HVWDEOLVKHG SHRSOH  (VWDEOLVKLQJDQGDGMXVWLQJWKHKLJKVSHHGUDLOSODQDQGSROLF  *XLGLQJDQGVXSHUYLVLQJ+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW  1RYHPEHU7KH+LJK6SHHG5DLO&RQVWUXFWLRQ3ODQQLQJ  6HSWHPEHU7KH&RQVWUXFWLRQ3ODQQLQJ'LYLVLRQRIWKH  (VWDEOLVKLQJDQGDGMXVWLQJWKHLQYHVWPHQWDQGIXQGLQJVXSSO\  0D\5HRUJDQL]HGLQWR+LJK6SHHG5DLO3URSXOVLRQ7HD  -XQH5HRUJDQL]HGLQWR+LJK6SHHG5DLO'HSDUWPHQW  $SULO7KH+LJK6SHHG5DLO'LYLVLRQ WHPSRUDU\RUJD ‡ 7DV ‡ 2UJDQL]DWLRQDQGSHUVRQQHO WKUHHGLYLVLRQV ‡ +LVWRU\ +LJK6SHHG5DLO&RQVWUXFWLRQ3ODQQLQJ7HDP  0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQ +LJK6SHHG5DLO+HDGTXDUWHUV .RUHDQ1DWLRQDO5DLOURDG 

‡ +LVWRU\  'HFHPEHU7KH+LJK6SHHG5DLO&RQVWUXFWLRQ7DVN)RUFH +LJK6SHHG 5DLO3ODQQLQJ7HDP ZDVHVWDEOLVKHG  'HFHPEHU7KH+LJK6SHHG5DLO2SHUDWLRQ3UHSDUDWLRQ7HDPZDV established.  -XO\7KH7HFKQRORJ\3URPRWLRQ0DQDJHPHQW7HDPZDVUHRUJDQL]HG LQWRWKH+LJK6SHHG5DLO0DQDJHPHQW7HDP  -XO\7KH+LJK6SHHG5DLO7UDLQLQJ'LYLVLRQZDVHVWDEOLVKHGZLWKLQ .RUHDQ1DWLRQDO5DLOURDG2I¿FLDOV7UDLQLQJ&HQWHU  $XJXVW7KH+LJK6SHHG5DLO0DQDJHPHQW7HDPZDVUHQDPHG+LJK 6SHHG5DLO3URMHFW0DQDJHPHQW7HDPWKH+LJK6SHHG5DLO2SHUDWLRQ Management Team was established.  -XO\7KH+LJK6SHHG5DLO+HDGTXDUWHUVZDVHVWDEOLVKHG RQHFKDLU SHRSOHLQ¿YHGLYLVLRQVDQGWHDPV   -DQXDU\7KH+LJK6SHHG5DLO&RQVWUXFWLRQ3URMHFW2IILFHZDV HVWDEOLVKHGZLWKLQWKH+HDGTXDUWHUV RQHFKDLUSHRSOHLQVL[GLYLVLRQVDQG WHDPV 

‡ 7DVNVDQGIXQFWLRQV  6\VWHPDWLFH[HFXWLRQRIWKHEXGJHWDQGSURFHVVFRQWUROIRUUDLOZD\V\VWHP PDLQWHQDQFHDQGUHSDLUWDVNV LQFOXGLQJWKHHOHFWULILFDWLRQRIWKHH[LVWLQJ UDLOZD\ LQWKH+LJK6SHHG5DLO&RQVWUXFWLRQ3URMHFW  )RUPXODWLQJGHVLJQFRQVWUXFWLRQDQGPDLQWHQDQFHUHSDLUSODQVLQWKHIDFLOLWLHV and electricity areas related to the project  3UHSDULQJIRUWKHRSHUDWLRQRIWKHKLJKVSHHGUDLO  6\VWHPDWLFSURPRWLRQRIWKHUDLOZD\WHFKQRORJ\GHYHORSPHQW

‡ 2UJDQL]DWLRQDQGSHUVRQQHO  +LJK6SHHG5DLO+HDGTXDUWHUV SHRSOHLQ¿YHGLYLVLRQVDQGWHDPV

2) Having supervised the construction and operation of the railway system, the Headquarters was divided into Korean National Railroad Facilities Authority, which oversees the railroad facilities, and Korean National Railroad, which manages the operation, according to the National Railroad Industry Restructuring Plan (2004).  Chapter 2  24 & Signal (4 sub div.) communication construction ‡,QIRUPDWLRQ ‡VLJQDOFRQWURO Communication KHGLVSDWFKHG (4 teams) 12 people Divisions VHYHQGLYLVLRQV planning technology technology technology Technology Development ‡ 7HFKQLFDO ‡ )DFLOLW\ ‡ (OHFWULFLW\ ‡ 9HKLFOH 21 Power (4 sub div.) Railway transmission/ transformation construction ‡3RZHU ‡(OHFWULILFDWLRQ ‡3RZHU (3 teams) 13 people 19 Division Operation planning planning operation (4 sub div.) ‡ 2SHUDWLRQ ‡ %XVLQHVV ‡ 9HKLFOH Machinery construction Architectural ‡$UFKLWHFWXUH ‡0DFKLQH ‡)DFLOLWLHV 19 Chair Office (3 sub div.) (3 teams) 11 people Division construction Engineering Electricity communication ‡(QJ ‡(QJ ‡ 5DLOZD\SRZHU ‡ ,QIRUPDWLRQ ‡ 6LJQDOFRQWURO 20 (3 sub div.) Tracking

High Speed Rail Headquarters construction ‡7UDFNLQJ ‡7UDFNLQJ )LJXUH!+LJK6SHHG5DLO&RQVWUXFWLRQ2IÀFH (6 teams) 15 people Division Facilities ‡ 7UDFNLQJ ‡ (QJLQHHULQJ ‡ $UFKLWHFWXUH 11 Quality (2 sub div.) Control safety ‡3URFHVV ‡4XDOLW\ (4 teams) 16 people Division DQGVXEGLYLVLRQV YHKLFOHPDQDJHPHQWWHDP 7) 24 Planning 1RWLQFOXGLQJWKHUHJXODUSHUVRQQHODWWKHEUDQFKRI¿FHVDQGW arrangement  +LJK6SHHG5DLO&RQVWUXFWLRQ2I¿FH RQHFKDLUSHRSOHLQ ※ (5 sub div.) ‡ 0DQDJHPHQW ‡ 3ODQQLQJ ‡ 3URMHFWFRQWURO ‡ 9HKLFOH Construction Administration ‡0JPW ‡$FFWJ ‡0DWHULDOV ‡/DQG ‡/DQG .RUHDQ+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\

‡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

‡ 7DVNVDQGIXQFWLRQV  &RQVWUXFWLQJWKHKLJKVSHHGUDLO

Chair Auditor

Vice Chairman

Quality Control Design Control

General Machinery Planning Financial Construction Affairs & Electricity

Vehicle Seoul Daegju Chungang Vehicle Jungbu Production Construction Construction Construction Tracking Testing Office & Control Office Office Office Office Office Office

Organization and Personnel of Korean High Speed Rail Construction Authority

 Chapter 2  DWLRQ LFHIRU ULQJ]RQH LF'LYLVLRQ HQDFWHGRQ  QDO$LUSRUW 0LQLVWHURI RQ&RPPLWWHH WWHH WLRQDO'HIHQVH WRWKHFRQVWUXFWLRQ UPDQ FSODQIRUKLJKVSHHG ¿FHVSHRSOH H\SROLFLHVRQWKHFRQVWUXFWLRQRI N H\SROLFLHVUHODWHGWRWKHFRQVWUXFWLRQRIKLJKVSHHGUDLOV N $JULFXOWXUHDQG)RUHVWU\&RPPHUFH,QGXVWU\DQG(QHUJ\,QIRUP DQG&RPPXQLFDWLRQ(QYLURQPHQW6FLHQFHDQG7HFKQRORJ\DQG2II *RYHUQPHQW3ROLF\&RRUGLQDWLRQ3UHVLGHQWLDO6HFUHWDULDW(FRQRP &RQVWUXFWLRQ,PSXOVLRQ&RPPLWWHH 3UHVLGHQWLDO'HFUHH1R -XO\ 3UHVLGHQWLDO'HFUHH1RSDUWLDOO\DPHQGHGRQ1RYHPEHU 0DULWLPH$IIDLUVDQG)LVKHULHV development project development high speed rails, new international airports, and new harbors high speed rails, new international airports, rails, new airports, and harbors funding procurement new airports, and harbors as well as construction of high speed rails, new airports, and harbors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‡ 2UJDQL]DWLRQDQGSHUVRQQHO KHDGTXDUWHUVGLYLVLRQVRI ‡ (VWDEOLVKPHQW*URXQGV ‡ *RDO ‡ )XQFWLRQV ‡ 2UJDQL]DWLRQ SHRSOHLQFOXGLQJWKHFKDLUPDQDQGYLFHFKDL 6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPL VHFUHWDU\'LUHFWRURI)RUHVW6HUYLFHV'LUHFWRURI.RUHDQ1DWLRQDO5DLOURDG 6HRXO0HWURSROLWDQ&LW\0D\RUPD\RUVRIPHWURSROLWDQFLWLHVJRYHUQRUV &KDLUPDQRI.RUHDQ+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\&KDLUPDQRI ,QFKHRQ,QWHUQDWLRQDO$LUSRUWDQGRWKHUVUHODWHGWRWKHLVVXHVWREHUHYLHZHG and appointed by the chairman  7DVN)RUFH&RPPLWWHH SHRSOHLQFOXGLQJWKHFKDLUPDQDQGYLFHFKDLUPDQ  &KDLUPDQ9LFH0LQLVWHUVRI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQ0DULWLPH $IIDLUVDQG)LVKHULHV  9LFHFKDLUPDQ'LUHFWRURIWKH&RQYH\DQFH3ROLFLHV2I¿FHDWWKH0LQLVWU\RI &RQVWUXFWLRQDQG7UDQVSRUWDWLRQ'LUHFWRURI3ODQQLQJDQG0DQDJHPHQWDWWKH 0LQLVWU\RI0DULWLPH$IIDLUVDQG)LVKHULHV  0HPEHUV0LQLVWHUVRI6WUDWHJ\DQG)LQDQFH3XEOLF$GPLQLVWUDWLRQDQG 6HFXULW\1DWLRQDO'HIHQVH&XOWXUHDQG7RXULVP$JULFXOWXUHDQG)RUHVWU\ &RPPHUFH,QGXVWU\DQG(QHUJ\,QIRUPDWLRQDQG&RPPXQLFDWLRQ (QYLURQPHQWDQG6FLHQFHDQG7HFKQRORJ\2I¿FHRI3ODQQLQJDQG%XGJHWLQJ 2I¿FHRI*RYHUQPHQW3ROLF\&RRUGLQDWLRQ2I¿FHRI)RUHVW6HUYLFHV.RUHDQ 1DWLRQDO5DLOURDG3UHVLGHQWLDO6HFUHWDULDWGLUHFWRUVRI6HRXO&LW\DQGWKHRWKHU FRQFHUQHGFLWLHVDQGSURYLQFHV1DWLRQDO5DLOURDG$XWKRULW\9LFH&KDLUPDQRI ,QFKHRQ,QWHUQDWLRQDO$LUSRUWDQGWKRVHDSSRLQWHGE\WKHFKDLUPDQ

2.2 Relevant Laws 3URYLVLRQRQWKH+LJKVSHHG(OHFWULF5DLODQG1HZ,QWHUQDWLRQDO$LUSRUW Construction Impulsion Committee

7KHSURYLVLRQRQWKH+LJKVSHHG5DLODQG1HZ,QWHUQDWLRQDO$LUSRUW&RQVWUXFWLRQ Impulsion Committee was enacted in 1989 to deliberate on and coordinate the basic SODQDQGLPSRUWDQWSROLFLHVIRUWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLODQGQHZ LQWHUQDWLRQDODLUSRUW7KLV$FWGHILQHVWKHFRPPLWWHH¶VIXQFWLRQVDQGFRPSRVLWLRQ its working committee composition, and other necessary matters concerning its RSHUDWLRQ LQ1RYHPEHUWKHSURYLVLRQQDPHZDVFKDQJHGWR³3URYLVLRQRQWKH 62&,QIUDVWUXFWXUH&RQVWUXFWLRQ,PSXOVLRQ&RPPLWWHH´ 

7KH.RUHD+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\$FW

7KH.RUHD+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\$FWZDVHQDFWHGLQ

 Chapter 2  Date of enactment July 24, 1989 December 27, 1991 December 31, 1996 WRGH¿QH LRQTXDOL¿FDWLRQV SHUYLVLRQWKHUHRI LJKVSHHGUDLOZLWK ¿QHVWKHWHUPRIWKH PDWWHUVUHODWHGWRWKH UDLOVRDVWRHI¿FLHQWO\ VSHHGUDLOFRQVWUXFWLRQ VLQDELGWRHQKDQFHSXEOLF N Define the basic plan and the execution plan for the high-speed rail construction, the project implementers, supervision of the project, the Act’s correlation with other laws, designation of the prearranged areas for the rail, and other matters concerning the construction of the highspeed rail Define the committee’s function, composition, and working committee composition, and other matters necessary for the operation of the committee Define the business scope, officer composition and qualifications, financing methods, collection of service fees, and other overall matters necessary for the operation of the Authority

Laws Pertaining the High Speed Rail to 2-4> Laws

1. Design Criteria and Detail Design

1.1 Establishment of the Design Criteria and Basic Design

7KH*\HRQJEX+LJK6SHHG5DLO3URMHFWZDVDJRRGRSSRUWXQLW\WRQRWFKXS South Korea’s construction technology in terms of both the size and content of the construction. Therefore, the South Korean government propelled the project by focusing on the independence of the country’s high speed rail technology and WKHSURGXFWLRQRIUDLOZD\WHFKQLFLDQV$FFRUGLQJO\IURPWKHSODQQLQJSKDVHWKH JRYHUQPHQWPDGHVXUHWKDW6RXWK.RUHDQWHFKQLFDOH[SHUWVZRXOGOHDGWKHSURMHFW but foreign technical teams were encouraged to handle the technology areas that South Korea was lacking in to ensure the technical stability and reliability of the high speed rail. South Korean technologies were also used in the civilengineering, tracking, and architectural issues so that in the future, South Korea would be able to construct a high speed rail system using its own technology.

7KHGHWDLOHGGHVLJQIRUWKHVXEEDVHFRXUVHFRQVWUXFWLRQZDVSHUIRUPHGE\ VSHFLDOLVWVIURP6RXWK.RUHDQWHFKQLFDOVHUYLFHFRPSDQLHVDQGLQWKHGHVLJQLQJ process, academic scholars and specialists joined the force so that the design would conform to the design criteria of UIC and foreign high speed rail systems.

7KHG\QDPLFVDIHW\UHYLHZRIWKHH[WHQVLRQVVWUXFWXUHVDQGIRUPVRIWKHVXEEDVH facilities and structures, such as the bridges and tunnels, designed by South Korean specialists was commissioned to and performed by renowned foreign specialists.

 Chapter 3  IRUWKH \UHYLHZD LQFUHDWLQJHLJKW FUHDWHWKHGHVLJQ 61&)LQ)UDQFH UDLOGHVLJQFULWHULD LQUHODWLRQ EOHIRU6RXWK.RUHD¶V WREHLQWURGXFHG DQG LFDOWHDPRI6<675$ VWDQGDUGORDGDSSOLHG RQWKVIURP1RYHPEHU 7KHFRGHZDV¿UVWXVHGLQWKHGHWDLO N VIRUPDWLRQOHYHODQGWUDF N gage, curve and slope, construction limitations, distance between the distance between the gage, curve and slope, construction limitations, k E&UHDWLQJWKHVWDQGDUGVSHFL¿FDWLRQV :LWK.6&(DVWKHPDLQFRQWUDFWRUVSHFLDOLVWVSDUWLFLSDWHG a. Establishment of the construction code 7KH+LJK6SHHG5DLO&RQVWUXFWLRQ&RGHRQ5DLOZD\DQG6WUXFWXUHV Considering the connecting operation between South Korea and its neighboring and its neighboring operation between South Korea Considering the connecting 6RPH6RXWK.RUHDQDQGIRUHLJQVSHFLDOLVWVMRLQHGIRUFHVWR $IWHUWKHILUVWSKDVHGHVLJQDQGWKHVHFRQGSKDVHG\QDPLFVDIHW (VWDEOLVKPHQWRIWKH'HVLJQ&ULWHULD of other countries at that time. WR6HSWHPEHU6KRZQEHORZDUHWKHKLJKVSHHG standard specifications, including the steel bridge and composite bridge design steel bridge and composite bridge design standard specifications, including the VWDQGDUGVSHFL¿FDWLRQVIRUWKHKLJKVSHHGUDLOV\VWHPIRUP FHQWHUVRIWKHWUDF to the trac design and test railway sections. &RQVWUXFWLRQRID+LJK6SHHG5DLOZDVHVWDEOLVKHGRQ'HFHPEHU FULWHULDIRUWKH*\HRQJEX+LJK6SHHG5DLO6\VWHPWKDWDUHVXLWD worldwide, was set as the design load. FRXQWULHV &KLQD1RUWK.RUHD5XVVLDHWF WKH8,&FRGHWKH topology, using the design criteria of UIC and foreign high speed rail systems. using the design criteria topology, comprehensive safety review of the technical connectivity between the core the core connectivity between of the technical safety review comprehensive HTXLSPHQW HJWKH7*9YHKLFOHVLQ)UDQFHWKHDFWXDOYHKLFOH WKHVXEEDVHFRXUVHIDFLOLWLHVZDVSHUIRUPHGE\DVSHFLDOWHFKQ IRUPHUO\62)5(5$,/ DKLJKVSHHGUDLOFRPSDQ\DI¿OLDWHGZLWK

Design Criteria for the Foreign High Speed Rail Systems

South Korea: Japan: : Germany: Spain: Category KTX TGV ICE AVE Max. speed 300 km/h 260 km/h 320 km/h 300 km/h 250 km/h Min. radius of curve 7,000 (400 m) 4,000 m 6,000 m 7,000 m 4,000 m Max. grade 25‰ 15‰ 25‰ 12.5‰ 12.5‰ Width of formation level 14.0 m 11.6 m 13.6 m 13.7 m 13.3 m Distance between the 5.0 m 4.3 m 4.5 m 4.7 m 4.3 m centers of tracks Section area of the tunnel 107 m2 (75m2) 60 m2 100 m2 82 m2 74 m2 Design load HL load (UIC load) NP load UIC load UIC load UIC load Source: Korea Rail Network Authority (2011)

%DVLF'HVLJQ

Through the preliminary measurement of the optimal alternative and the reviewed alternatives, the total sizes of the facilities for engineering, bridges, stations, tracks, buildings, electricity, vehicle depots, and other sites were roughly determined, and the total project cost and term were calculated.

1.2 Detail Design

7KHGHWDLOGHVLJQRIWKHVXEEDVHIDFLOLWLHVIRU*\HRQJEX+LJK6SHHG5DLOZDV SHUIRUPHGIURP-XQHWR$XJXVWE\GLYLGLQJWKH6HRXO%XVDQVHFWLRQLQWR FRQVWUXFWLRQVHFWLRQVEDVHGRQWKHUHVXOWVRIWKHWHFKQLFDOVXUYH\ .RUHD7UDQVSRUW ,QVWLWXWH DQGWKHVWDQGDUGVSHFL¿FDWLRQV .6&( 7KH&KHRQDQ'DHMHRQVHFWLRQ  NP ZDVVHOHFWHGDVWKHWHVWOLQHDQGWRHQVXUHWKDWWKHFRQVWUXFWLRQZRXOGEHJLQLQ WKHGHWDLOGHVLJQRIWKHIRXUWKDQG¿IWKFRQVWUXFWLRQVHFWLRQVZDVSHUIRUPHG¿UVW The detail design of the power facilities was performed by dividing the facilities into VL[VHFWLRQVIRUWKHSRZHUWUDQVPLVVLRQWUDQVIRUPDWLRQIDFLOLWLHVWZRVHFWLRQVIRUWKH HOHFWULFUDLOZD\VWKUHHVHFWLRQVIRUWKHHOHFWULFSRZHUGLVWULEXWLRQIDFLOLWLHVDQGRQH VHFWLRQIRUWKHUHPRWHFRQWUROIDFLOLW\

In the detail design process, as much advice as can be gathered from specialists in YDULRXV¿HOGVDQGIRUHLJQWHFKQLFDOLQIRUPDWLRQZDVXWLOL]HG$VIRUWKHNH\VWUXFWXUHV

 Chapter 3  QRZKRZ N HSURMHFWVLQ LQFRQWUDFWRU RUHDDQGWKHUH WKDWZRXOGHQWDLO WRURUJDQL]DWLRQ HWKH+LJK6SHHG FKQLFDO N RQVWUXFWLRQSURMHFW QXFOHDUSRZHUSODQW OL WKHQHHGIRUSURMHFW VWDJH,QWKHVD IVYDULRXVPDWHULDOV WHFKQLTXHZDVUHTXLUHG HFWZRXOGEHH[HFXWHG WKDWWKHORFDWLRQVRIWKH FWLRQRIDIRUHLJQSURMHFW the South Korean company participated only in some areas, thus the South Korean participated company only in some areas, thus $OWKRXJKVRPHSURMHFWPDQDJHPHQWV\VWHPVZHUHLQWURGXFHGWRVRP $IWHUWKHVFRPSXWHUVEHFDPHZLGHO\GLVWULEXWHGLQ6RXWK. $VWKH*\HRQJEX+LJK6SHHG5DLO3URMHFWZDVDFRPSRXQGSURMHFW 2.1 Background 2. Introduction of the Project Management System 2. Introduction such as bridges and tunnels, international specialists and technicians from the country from the technicians and specialists international and tunnels, as bridges such and the of the technologies in the review supply the trains participated that would new technologies. selection of management rapidly increased. Since then, the South Korean companies already management rapidly increased. Since then, the South Korean companies already led technological development and utilization and received technical advice from IRUHLJQFRPSDQLHVRQO\LQWKHDUHDVZKHUHWKH6RXWK.RUHDQV¶WH FRQVWUXFWLRQSURMHFWV$FFRUGLQJO\WKHSHRSOH¶VUHFRJQLWLRQRI 5DLO3URMHFW7KXVDOOWKHVSHFLDOLVWVDJUHHGWKDWWKHLQWURGX management technique was absolutely necessary. WKHHDUO\VLQ6RXWK.RUHDWKH\ZHUHPRVWO\LQWKHLQIDQW XQGHUDSURMHFWPDQDJHPHQWV\VWHP$IRUHLJQFRPSDQ\ZDVWKHPD while however, management techniques under the project acquiring some process control and cost management system. ZDVDQLQFUHDVHLQWKHQXPEHURIODUJHVFDOHSURMHFWVVXFKDV 6RXWK.RUHDQWHFKQLFDOWHDPFDUULHGRXWDQXFOHDUSRZHUSODQWF DODUJHLQYHVWPHQWFRVWDVFLHQWL¿FDQGV\VWHPDWLFPDQDJHPHQW WKDWKDGWKHFDSDFLW\RUH[SHULHQFHRIPDQDJLQJDODUJHSURMHFW IRUWKHHIIHFWLYHLPSOHPHQWDWLRQRIWKHSURMHFW$OVRWKHIDFW of a reasonable project management system equipment, and data made the introduction HYHQPRUHXUJHQW$WWKDWWLPHKRZHYHUWKHUHZDVQRVSHFLDOLV SURMHFWZHUHGLVWULEXWHGDOORYHUWKHFRXQWU\DQGWKDWWKHSURM and management with France and required the control through technical cooperation RIYDULRXVVWDWHRIWKHDUWWHFKQRORJLHVDODUJHQXPEHURIVWDI ZDVODFNLQJ$VVXFK6RXWK.RUHDEHJDQWRDFFXPXODWHWHFKQRORJLHVRQSURMHFW management systems.

$FFRUGLQJO\RQ6HSWHPEHUWKHVHOHFWLRQJXLGHOLQHIRUWKHSURMHFW PDQDJHPHQWVHUYLFHFRPSDQ\ZDVGHWHUPLQHGDQGRQ1RYHPEHUD proposal request was sent to seven foreign service companies, including Bechtel. $IWHUWKHUHFHLSWRISURSRVDOVIURPWKUHHFRPSDQLHV %HFKWHO/RXLVH%HUJHUDQG 3DUVRQV%ULQNHUKRII RQ'HFHPEHUWKHSURSRVDOPDGHE\%HFKWHOZDV selected, and a contract was concluded. The contract with Bechtel started as one for VLPSOHDGYLVRU\VHUYLFHDQGH[SDQGHGWRSURMHFWPDQDJHPHQWVHUYLFHVLQ

2.2 Bechtel’s Project Management Services (1993-2001)

‡ %HFKWHO¶VUROH ż (VWDEOLVKLQJWKHLQIUDVWUXFWXUHUHTXLUHGIRUH[HFXWLQJDQLQWHUQDWLRQDOJUDGH large project  1HJRWLDWLRQVIRUFRUHV\VWHPFRQWUDFWDQGLQWHUQDWLRQDOORDQFRQWUDFWHWF ż 7KHRUHWLFDODQGSUDFWLFDOVXSSRUWDFFRUGLQJWRWKHLQWURGXFWLRQRIDSURMHFW management method  'HYHORSLQJYDULRXVSURFHGXUHVV\VWHPVWKHEDVLFSURFHVVFKDUWDQGWKH management guideline process charts ż 3URSRVLQJWKHGLUHFWLRQRIDQGDOWHUQDWLYHVWRNH\GHFLVLRQVWKURXJKYDULRXV advising activities on construction, supervision, and quality control ż 6XSSRUWRQYDULRXVFRSLQJPHWKRGVDQGFDSDFLWLHVXQGHUDQLQWHUQDWLRQDO contract  &UHDWLQJLQWHUQDWLRQDOFRQWUDFWV5)3V5)3HYDOXDWLRQDQGPHDVXUHVIRU various claims, etc. ż $FTXLULQJDQLQWHUQDWLRQDOFUHGLWVWDQGLQJIRU*\HRQJEX+LJK6SHHG5DLORI .RUHDQ+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\  &RQWULEXWLQJWRWKHFRQYHQLHQFHLQDWWUDFWLQJIXQGVIURPIRUHLJQ¿QDQFLDO PDUNHWVDQGWRWKHUHGXFWLRQRIWKH¿QDQFLDOFRVWV

‡ 2XWFRPHVRIWKHVHUYLFHV  30$6 3URMHFW0DQDJHPHQW$GYLVRU\6HUYLFH  $SULO6HSWHPEHU  ż (VWDEOLVKHGWKHSURMHFWPDQDJHPHQWV\VWHPE\LQWURGXFLQJDV\VWHPDWLF

 Chapter 3  HORSLQJ DFW86' LILFDWLRQV HP EDVLFSODQ OLRQ VDYHG  GRFXPHQWV DQGWHFKQLFDO UDLQZLUHOHVV WKHFKDQJHLQ FRQWUDFW86' HYLVLRQZKLFK QV  QQHJRWLDWLQJIRU DYRLGDQFHPDQDJHPHQWV\VWHP VDYHG N 0D\ documents the vehicle supply schedule SURMHFWPDQDJHPHQWSURFHGXUHVDQGH[SDQGLQJWKHHOHFWURQLFV\VW DERXW.5:ELOOLRQ ELOOLRQ VDYHG86'ELOOLRQ ZDWHUSURR¿QJV\VWHPV PLOOLRQ VDYHGDERXW86'PLOOLRQ LQFOXGLQJVWDQGDUGZDWHUSURR¿QJFRGHVDQGVWUXFWXUDOFDOFXODWLR '&RQWULEXWHGWRWKHDFTXLVLWLRQRI,62DQG.6$FHUW process and cost management system management and cost process a core system contract a core system  ,QLWLDOSULFHVXJJHVWHGE\)UDQFHDERXW86'ELOOLRQĺ¿QDO  (VWDEOLVKHGDQHIIHFWLYHH[FKDQJHULV ZDVUHYLVHGLQ-XO\DQGLGHDVZHUHUHÀHFWHGRQWRWKHU UHGXFHGWKHFRVWE\DERXW.5:ELOOLRQ $&RUHFRQWUDFWFODLPQHJRWLDWLRQVRQWKHFRPSHQVDWLRQVGXHWR 86'PLOOLRQ %(VWDEOLVKHGDFRPSUHKHQVLYHSURMHFWPDQDJHPHQWV\VWHPE\GHY &2IIHUHGWUDLQLQJSURJUDPVIRUSURMHFWPDQDJHPHQWWHFKQLTXHV )UDQFHUHTXHVWHGIRU86'PLOOLRQĺQHJRWLDWHGDW86'PLO  5HGXFHGWKHWHUPE\LQWURGXFLQJQHZPHWKRGV 360PHWKRGDQG system and construction supervision system and construction  3ULFHVXJJHVWHGE\0RWRURODDERXW86'PLOOLRQĺ¿QDOFRQWU ż HPSOR\HHVUHFHLYHGWUDLQLQJSURJUDPVWHFKQLFDO ż    ż 5HGXFHGWKHEXGJHWE\HVWDEOLVKLQJDQHIIHFWLYHVWUDWHJ\ZKH ż /HGWRDUHDVRQDEOHFRQWUDFWZLWKIRUHLJQFRPSDQLHVRQWKHW ż $WRWDORILGHDVRQPHWKRGFKDQJHVZHUHSURSRVHGZKHQWKH ż 'HVLJQDQGTXDOLW\FRQWURO supported the owner’s decision-making process by offering its opinions, advice, and suggestions. owner, and was to take responsibility for the outcomes   306 3URMHFW0DQDJHPHQW6HUYLFH  'HFHPEHU±-DQXDU\ 3) It was a simple advisory contract without concrete responsibilities, and at the owner’s behest, Bechtel 4) A contract under which Bechtel was to perform the services either in cooperation with or on behalf of the

Conditions of the PMS Contract

Phase 3 Category Phase 1 Phase 2 Revision Phase 4 Original (May 24,1999) Type PMAS PMS 1993.04.16- 1995.04.16- 1999.12.01- Term 1997.12.01-1999.11.30 1995.04.15 1997.09.30 2001.11.30 Amount $20.35M $34.92M $82M $41.6M $57.63M Executed $12.71M $21.32M - $36.77M - amount Labor Max. 20 Max. 36 37-120 Max. 87 Max. 85 Review at the behest of High Creating an integrated organization with the Speed Rail Authority Authority Methods Offering advice Managing the co-op projects Supporting the decision-making Participating in the decision-making process process Source: MLTM (2010)

2.3 Establishing an Independent Project Management System (2002-2005)

$IWHUFRPSOHWLQJWKHSURMHFWPDQDJHPHQWFRQWUDFWZLWK%HFKWHOWKH$XWKRULW\ established the system for producing specialists by having a specialist service provider train its project management staff with theories and electronic education to enable WKHPWRSHUIRUPLQGHSHQGHQWSURMHFWPDQDJHPHQWWDVNV$IWHU-DQXDU\DQHZ RUJDQL]DWLRQ .RUHDQ1DWLRQDO5DLOURDG)DFLOLWLHV$XWKRULW\ WKDWLQWHJUDWHGWKH FRQVWUXFWLRQDUHDRIWKHKLJKVSHHGUDLOV\VWHPDQGWKHH[LVWLQJUDLOZD\V\VWHPZDV established, which created a need for various project management methods for projects LQYDULRXVVL]HVDQGIRUPDWV,QWKHSURMHFWPDQDJHPHQWV\VWHPZDVUHYLVHGDQG LQWKHFRPSUHKHQVLYHSURMHFWPDQDJHPHQWV\VWHPZDVFRPSOHWHG

3. Vehicle Type Selection and Contract Conclusion

3.1 Overview

2QHRIWKHFRUHWDVNVRIWKH*\HRQJEX+LJK6SHHG5DLO3URMHFWZDVWKHVHOHFWLRQRI the vehicle type and technology transfer. The task for selecting the vehicle type began

 Chapter 3  PKDQG N of technical of technical FUHDWHGDQG k RUHD7UDQVSRUW  &RUS'DHZRR KHWHFKQRORJ\ OHFWHGEDVHGRQ Q2FWREHU FLDOLVWV5HIHUULQJ WIRUHLJQIXQGLQJ UZHQWYDULRXVWULDO KHWHFKQLFDOVXUYH\ HGUDLOWHFKQRORJLHV DQ\RQ$XJXVW QRORJLHV7KHWDUJHW WKH*\HRQJEX+LJK HKLFOHW\SH QJWKHSURSRVDOV OLW\WHFKQRORJ\WUDQVIHU 7KHVFRSHRIWKH5)3LQFOXGHGYHKLFOHVZLWKDPD[LPXPVSHHGRI to the technical trends determined in the symposium, Korea Transport Institute, Institute, Transport symposium, Korea to the technical trends determined in the

 (YDOXDWLRQSDUWLFLSDQWRUJDQL]DWLRQV  .RUHD+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\  )LYH6RXWK.RUHDQRUJDQL]DWLRQV.RUHD7UDQVSRUW,QVWLWXWH.,00.(5, .RUHD5DWLQJVDQG6KLQ .LP  )RUHLJQRUJDQL]DWLRQ,QWHUQDWLRQDO2YHUVHDV%HFKWHO,QF

 (YDOXDWLRQLWHPVE\DUHD  )LQDQFH LWHPV &UHGLWUDWLQJWRWDOORDQDPRXQWRILQWHUHVWUHGHPSWLRQ SHULRGZDUUDQW\SHULRGFDSLWDOL]DWLRQRIFRQVWUXFWLRQLQWHUHVWH[FKDQJHULVN hedge, other special conditions  5ROOLQJVWRFN LWHPV 9HKLFOHV\VWHPQRLVH YLEUDWLRQYHKLFOHVWUXFWXUH DPHQLWLHVVHDWVRSHUDWLQJURRPIDFLOLWLHVDLUFRQGLWLRQLQJV\VWHPWUXFN  comfort, brake device, current collector, propelling device, controlling device, VHUYLFHV RWKHUV  &DWHQDU\ LWHPV '\QDPLFSHUIRUPDQFHHOHFWULFFKDUDFWHULVWLFVUHOLDELOLW\ safety characteristics, installation condition, installation services, training plan, WHVWLQJ WHVWGULYLQJSODQSDUWVWRROVRWKHUHTXLSPHQWPDLQWHQDQFH UHSDLU SODQVHUYLFHVEDVLF GHWDLOHGGHVLJQV  $7& LWHPV +HDGZD\VSHHGFRQWUROSKDVHLQWHUIDFHWRWKHWUDLQ

 Chapter 3  LOHG HWVDOHV FRQWURO FRQWURO ODWLRQ  N RQHWF  GHVLJQ  FRQWUDFWRU JDWLRQWHVW OLQHVLJQDO GLWLRQVMRLQW LYLQJVLJQDO PDU HQDQFHUHSDLU DERUWUDLQLQJ YLFHFHQWUDO HVVFKHGXOLQJ WUDWLRQFRQWURO WHVWLQJ WHVW ODQ VHUYLFHV H[SHULHQFHLQ PDLQWHQDQFH VHUYLFHV IRUFHWRGHIHFWV LRQFRQGLWLRQ  JURXQGVLJQDOLQJ J WHVWGULYLQJ surety of the contractor GHVLJQ PDQXIDFWXULQJ JXDUDQWHHLQJWKHSDWHQWVHWF LQVWDO PDLQWHQDQFHUHSDLU FRQWUDFWRU¶VLQVWDOODWLRQVHUYLFHVHWF  UHVSRQVLELOLW\ FRQWUDFW GHIHFWZDUUDQW\HWF UHOLDELOLW\XVDELOLW\PDLQWHQDQFH UHSDLUVDIHW\LQVWDOODW VHUYLFHVWUDLQLQJSODQWHVWLQJ WHVWGULYLQJSODQRSHUDWLRQ UHSDLUJXLGHOLQHVSDUWVWRROVHTXLSPHQWPDLQWHQDQFHUHSDLUS EDVLFGHVLJQ VXSHUYLVLRQ VRIWZDUHFHQWUDOFRQWUROURRP GLVSOD\GHYLFHLQVWDOODWLRQO SODQWHVWLQJ WHVWGULYLQJSODQSDUWVWRROVHTXLSPHQWPDLQW IDFLOLWLHVGHVLJQDXWRPDWLFWUDLQFRQWUROGHYLFHWUDLQFRQFHQ GHYLFHFRQQHFWLQJGHYLFHVLJQDOIDFLOLWLHVWHVWLQJ WHVWGU facility installation services SODQ VHUYLFHV ULJKWVV\VWHPHQJLQHHULQJFRQGLWLRQVYHKLFOHVHOHFWULFFDU Ŷ 6SHFLDOFRQGLWLRQV&RPSHQVDWLRQIRUGHIHUPHQWLQVXUDQFHFRQ GHYLFHUHOLDELOLW\PDLQWHQDQFH UHSDUDELOLW\VDIHW\EDVLF VXSHUYLVLRQLQVWDOODWLRQFRQGLWLRQ VHUYLFHVWUDLQLQJSODQ GULYLQJSODQSDUWVWRROVHTXLSPHQWPDLQWHQDQFHUHSDLUSODQ  LQVWDOODWLRQRIVLJQDOIDFLOLWLHVDXWRPDWLFYHKLFOHFRQWUROGH high speed rail construction, funding sources JXLGHOLQHVSURFHGXUHV GUDZLQJVRSHUDWLRQVWRULQJORDGLQJ  PDWHULDOV HTXLSPHQWFRQWUROVSHFLDOSURFHVVFRQWUROLQYHVWL FRQWUROWHVWLQJLQVSHFWLRQ VWDWHVTXDOLW\SURJUDPUHFRUGV device concentration control device, connecting Ŷ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

)LUVW3KDVH3URSRVDO(YDOXDWLRQ

a. Evaluation process and overall opinions )ROORZLQJWKHJRYHUQPHQW¶VKLJKVSHHGUDLOSURMHFWSROLFLHV+LJK6SHHG5DLO &RQVWUXFWLRQ$XWKRULW\VHQWRXWWKH5)3WRWKUHHFRXQWULHV)UDQFH*HUPDQ\DQG -DSDQZKLFKRZQKLJKVSHHGUDLOWHFKQRORJLHVRQ$XJXVWDQGUHFHLYHG WKHLQLWLDOSURSRVDOVRQ0DUFKIURPWKUHHFRQVRUWLXPV*(&$OVWKRP )UDQFH 6LHPHQV$*7UDQVSRUW*URXS *HUPDQ\ DQG0LWVXELVKL -DSDQ 'HVSLWH the difference in the method and characteristics, the vehicle systems proposed by WKHWKUHHFRQVRUWLXPVZHUHGHWHUPLQHGWREHVXLWDEOHIRUWKH*\HRQJEX+LJK6SHHG 5DLO6\VWHPLQWHUPVRIWHFKQRORJ\DQGSHUIRUPDQFH0RVWRIWKHFRQWHQWVRIWKH proposals, however, such as the price, technology transfer and localization conditions, DQGVFKHGXOLQJGLGQRWPHHW6RXWK.RUHD¶VH[SHFWDWLRQVDQG6RXWK.RUHDUHTXHVWHG WKH¿UVWVXSSOHPHQWSURSRVDO $SULO QRWLI\LQJWKDWLIWKHVXSSOHPHQWVGRQRW PHHWLWVH[SHFWDWLRQVWKHSULRULW\RIQHJRWLDWLRQZRXOGQRWEHGHWHUPLQHGDQGWKHELG will be opened to other companies.

7KHVXSSOHPHQWDU\SURSRVDOVVKRZHGWKDWZKLOH$OVWKRPLQ)UDQFHZDVVRPHZKDW superior to the other companies in terms of financial conditions, technological GHYHORSPHQWFRQWUROSODQDQGTXDOLILFDWLRQV6LHPHQVLQ*HUPDQ\ZDVVXSHULRULQ WHUPVRIHFRQRPLFSHUIRUPDQFHDQGRYHUDOOWHFKQRORJLFDODVSHFWV:KLOH0LWVXELVKLLQ -DSDQZDVFRQVLGHUHGVXSHULRULQWHUPVRISULFHFRQGLWLRQVDQGVFKHGXOLQJLWVSURSRVDO GLGQRWPHHW6RXWK.RUHD¶VH[SHFWDWLRQV7KHUHIRUH6RXWK.RUHDFKDQJHGLWVSROLF\ to generate intense competition among the companies, and to drastically improve the level of the proposals.

+DYLQJVXEPLWWHGDUHSRUWRQVXFKFLUFXPVWDQFHVWRWKH6RFLDO2YHUKHDG&DSLWDO &RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHHWKH$XWKRULW\SURSRVHGWKHKROGLQJRI VLPXOWDQHRXVDQGPXOWLSOHSDUW\QHJRWLDWLRQVZLWKWKHWKUHHFRXQWULHVDVDPHDVXUH $IWHUWKHDSSURYDOWKH$XWKRULW\RI¿FLDOO\QRWL¿HGWKHWKUHHFRPSDQLHVRIWKHLQLWLDWLRQ RIVLPXOWDQHRXVPXOWLSOHSDUW\QHJRWLDWLRQVZLWKWKHPWKHQHJRWLDWLRQRUJDQL]DWLRQRI

 Chapter 3  WR6RXWK KQRORJLHV QDQFHUHSDLU KURXJKDORQJ HH[SHULHQFHLQ WKH$XWKRULW\ILUVW RQVEXWDOVRWKDWWKH QRORJ\WUDQVIHUDQG OHGQHJRWLDWLRQSODQV ZKLFKFRXOGOHDGWR KQLFDODVSHFWVUHODWHG DQGIRUHLJQVSHFLDOLVWV QSURMHFWVDQGIURPWKH SLFVLQWKHVHFRQGSKDVH while maintaining their own stance. To To own stance. while maintaining their k ept one another in chec k LQFOXGLQJDQGHVSHFLDOO\WKHVWDWHRIWKHDUWFRUHWHFKQRORJLHV term loan with low interest by setting the target values on the overall loan values on the overall loan target term loan with low interest by setting the and interest rate, as well as the conditions, such as the total amount of loans GHIHUUHGWHUPUHODWHGWRWKHH[SRUW¿QDQFHDQGFRPPHUFLDOORDQ the best performance, and selecting the vehicles and cost system that offers circumstances amenities that are suitable for South Korea’s  7HFKQLFDODUHDV/HDGLQJWRWKHFRQVWUXFWLRQRIDORZPDLQWH  7HFKQRORJ\GHYHORSPHQW(QVXULQJWKHWUDQVIHURIDOOWKHWHF  )LQDQFLDOFRQGLWLRQV6WDEOHSURFXUHPHQWRISURMHFWIXQGLQJW b. Negotiation and evaluation results b. Negotiation that the showed not only supplementary proposals of the initial and The evaluation The vehicle negotiation was conducted by phase and area. The topics in the The topics in the by phase and area. The vehicle negotiation was conducted  )LUVWSKDVHQHJRWLDWLRQWDUJHWV $VVXFK6RXWK.RUHDVHWWKHRSWLPDOQHJRWLDWLRQJRDODQGGHWDL SURSRVHGFRQWHQWE\DUHDZDVZHOOEHORZ6RXWK.RUHD¶VH[SHFWDWL proposing companies 6RXWK.RUHDDQGWKHVFKHGXOHRQ-XQH E\DUHD0RUHRYHUWRHQVXUHDQHIILFLHQWQHJRWLDWLRQSURFHVV ¿UVWSKDVHQHJRWLDWLRQLQFOXGHGWKH¿QDQFLDOFRQGLWLRQVWKHWHF E\DUHDDQGWKH$XWKRULW\KHOGQHJRWLDWLRQVZLWK6RXWK.RUHDQ XQGHUZHQWWUDLQLQJVHVVLRQVIURP.(3&2ZKLFKDFTXLUHGH[WHQVLY LQWHUQDWLRQDOQHJRWLDWLRQVGXULQJWKHQXFOHDUSODQWFRQVWUXFWLR negotiation and contract specialists. who were international Bechtel staff, WRWKHSHUIRUPDQFHVRIYDULRXVHTXLSPHQWVWDWHRIWKHDUWWHFK cope with such circumstance and to drastically improve the level of the proposals so as and to drastically improve the level cope with such circumstance South Korea changed with a better price and better conditions, to conclude the contract LWVVWUDWHJ\LQWRVLPXOWDQHRXVDQGPXOWLSOHSDUW\QHJRWLDWLRQV ORFDOL]DWLRQFRQWUDFWFRQGLWLRQVDQGRWKHUVDOHVDUHD7KHWR relating all the conditions to the price, with negotiation, on the other hand, focused on the primary objective of reducing the price. intense competition among the three companies. intense competition among Korea, to enable the construction of localized high speed trains therein, DQGPLQLPL]LQJWKHWHFKQRORJ\WUDQVIHUFRVWUHODWHGWRWKHWUDQVIHUSURFHVV HQVXULQJWKDWYHKLFOHJURXSVH[FOXGLQJWKHWZRVDPSOHYHKLFOHJURXSV would be assembled in South Korea so that South Korean companies could participate as actively and intensively as possible in the vehicle manufacturing process  6DOHV6HWWLQJWKHWDUJHWYDOXHVRQYDULRXVUHVSRQVLELOLWLHVDQGREOLJDWLRQV related to the project in such a way that the results would be beneficial to South Korea, and planning the scheduling so that each process proposed by South Korea would not pose any problem or give rise to any issue

 6HFRQGSKDVHQHJRWLDWLRQWDUJHWV SULFH   6HWWLQJWKHWDUJHWSULFHIRUDOOH[SHQVHVUHODWHGWRWKHSURMHFWDQGHQFRXUDJLQJ each company that submits a proposal to competitively approach the target SULFHPLQLPL]LQJWKHIDFWRUVFRQWULEXWLQJWRIXWXUHFRVWLQFUHDVHVVXFKDV market price increases

6HFRQG3KDVH3URSRVDO(YDOXDWLRQ

7KURXJKWKH¿UVWSKDVHQHJRWLDWLRQE\DUHDZLWKWKHWKUHHFRPSDQLHVIURP-XQH WR6HSWHPEHUWKHLUWHFKQLFDOOHYHOFRXOGEHFRPSDUHGDQGYHUL¿HGEDVHGRQ ZKLFK6RXWK.RUHDUHTXHVWHGWKH¿UPSULFHE\VHWWLQJWKHZRUNVFRSH

2Q6HSWHPEHUWKHUHYLVHGSURSRVDOVIURPWKHWKUHHFRPSDQLHVZHUH UHFHLYHGDQGWKHVHFRQGSKDVHSURSRVDOHYDOXDWLRQZDVFDUULHGRXWRQ2FWREHU 7KHHYDOXDWLRQWHDPFRQVLVWLQJRIDWRWDORIUHYLHZHUVIURPWKH$XWKRULW\ HYDOXDWLRQWHDPIURP%HFKWHODQGWKUHHIURP6KLQ .LPHYDOXDWHGWKH SURSRVDOVEDVHGRQWKHVDPHPHWKRGDVLQWKHILUVWSKDVHHYDOXDWLRQZKLFKZDVWR score the proposals by area and to sum up the scores.

:KLOHWKHWKUHHFRPSDQLHVSURSRVHGDILUPSULFHLWZDVYHU\KLJKEDVHGRQWKH DGMXVWPHQWRIWKHZRUNVFRSHDQGWKHIRUHLJQH[FKDQJHUDWHV7KH\DOVRFRQWLQXHG to avoid technology transfer, and the numbers of assemblies in South Korea were EHORZZKDWKDGEHHQRULJLQDOO\UHTXHVWHG3DUWLFXODUO\LQWHUPVRIFRUHWHFKQRORJ\ transfer, while they granted the right to manufacture and sell vehicles, the target sales

 Chapter 3  e them e them k \WHFKQRORJ\ ZHUHDERXWRI QLWIRFXVHGRQWKH HYDOXDWHWKHIXUWKHU VLDVP JXDUDQWHHLQJ LFKGLGQRWPHHWWKH HWF DQGH[SODLQHG G6LHPHQVLQ ORZUHOLDELOLW\RIWKH RUHDQORFDOL]DWLRQWKH\ FHVVLYHO\RYHUHVWLPDWHG FLSDWHLQWKHQHJRWLDWLRQ RQVHUYLFHVFKDUJHVDQG DQGHDFKFRPSDQ\VDWRQ Thus, the South Korean government changed its negotiation tactics to ma Thus, the South Korean government changed a. Evaluation results )RUWKHHYDOXDWLRQUHVXOWVIRUHDFKDUHD LHFRVWWHFKQRORJ b. Second-phase negotiation wanted to encourage proposed by Mitsubishi, South Korea Based on the price difference between the estimated and proposed prices. Second, by comparing the and proposed prices. Second, by comparing the between the estimated difference amounts, it encouraged the reduction of the proposed prices and the proposed supply XQLWSULFHVDQGWKHDPRXQWVRIVXSSO\RIWKHSDUWVWKDWZHUHH[ RWKHUODERUIHHV 7KLUGLWXUJHGWKHWKUHHFRPSDQLHVWRSDUWL RIWKRVHSDUWVWKDWKDGQRWEHHQDJUHHGXSRQZLWKJUHDWHUHQWKX WKHV\VWHPSHUIRUPDQFHFRUHWHFKQRORJ\WUDQVIHUORFDOL]DWLRQ WUDLQLQJFRVWSURYLVLRQDOSDUWVWUDQVODWLRQDQGLQWHUSUHWDWL of the other companies so as to instigate a the conditions by comparing them to those recognizing that the three companies were sense of competition among them. Finally, predicting the level of the proposal among themselves and attempted to adjust their so proposal just below those of the two other companies and within the smallest scope as to have the upper hand in the negotiation, the South Korean government advocated the table with less enthusiasm. reduced price proposals, but due to the unstable political circumstances at that time political circumstances at that time reduced price proposals, but due to the unstable SUHVLGHQWLDOHOHFWLRQHWF WKHQHJRWLDWLRQEHFDPHVWDJQDQW and analyzed the information on the more realistic and concrete. First, it collected rail vehicles so as to estimate the price actual transaction price of foreign high speed DSSURSULDWHIRU*\HRQJEX+LJK6SHHG5DLODQGLQWKHQHJRWLDWLR H[SHFWDWLRQVRI6RXWK.RUHDDWDOO(YHQZLWKUHJDUGWR6RXWK. on which rather than one based own production price plan based on their proposed a WKHORFDOL]DWLRQFRXOGEHFDOFXODWHGUHVXOWLQJLQDQH[WUHPHO\ UHJLRQVZHUHUHVWULFWHGRUUHTXLUHGDGYDQFHDSSURYDODOORIZK $OVWKRPDQG6LHPHQVWRUHGXFHWKHLUSULFHVDQGWRFRPSDUHDQG proposals. GHYHORSPHQWDQGVDOHV RXWRI$OVWKRPLQ)UDQFHVFRUH *HUPDQ\DQG0LWVXELVKLLQ-DSDQ$OOWKHVFRUHV the total score. DVWURQJSROLF\DJDLQVWVXFKWDFWLFDQQRXQFLQJWKDWLWZRXOGH[FOXGHWKHFRPSDQ\ whose level of proposal is the lowest among the three companies, so as to urge them to participate in the negotiation with greater enthusiasm.

7KLUG3KDVH3URSRVDO(YDOXDWLRQ

+DYLQJUHFHLYHGWKHWKLUGSURSRVDOVRQ'HFHPEHUWKH6RXWK.RUHDQ JRYHUQPHQWHYDOXDWHGWKHSURSRVDOVRQ'HFHPEHU7KHHYDOXDWLRQWHDPFRQVLVWHG RIUHYLHZHUVIURPWKH$XWKRULW\¶VHYDOXDWLRQWHDPIURP%HFKWHODQG IURPVSHFLDOLVWRUJDQL]DWLRQVDQGODZ¿UPVDQGWKHHYDOXDWLRQPHWKRGZDVWKHVDPH as that in the secondphase evaluation.

7KHWKLUGSKDVHHYDOXDWLRQDQGQHJRWLDWLRQIRFXVHGRQWKHSULFH7RHQFRXUDJH drastic price reduction from the three companies, the negotiation team adjusted the scope of some work and alleviated the overall conditions to the level of the custom of international trade, but the three companies could not meet the target price of the negotiation team.

1HYHUWKHOHVVWKHWKUHHFRPSDQLHVVXIILFLHQWO\XQGHUVWRRGWKHUHTXHVWRIWKH QHJRWLDWLRQWHDPDQGUHYLHZHGWKHLU¿UVWSULFHUHYLVLRQDQGFRQVLGHUDEO\ORZHUHGLW

$VIRUWHFKQRORJ\WUDQVIHUDQGORFDOL]DWLRQWKHWKUHHFRPSDQLHVFRQGXFWHGSUDFWLFDO negotiations with a South Korean company to accommodate the requests made by the negotiation team, and calculated and presented the localization price based on the HVWLPDWHVSURSRVHGE\WKH6RXWK.RUHDQFRPSDQ\$VIRUWKHEDVLFFRQWUDFWJHQHUDO contracts, and some parts related to technology transfer, the negotiation team made VRPHSURJUHVVLWVXFFHHGHGLQFRQFOXGLQJFRPSOHWHWHFKQRORJ\WUDQVIHUDQGSURSRVHG DSODQWRHVWDEOLVKDMRLQWLQYHVWPHQWFRPSDQ\IRUWKHSURGXFWLRQRISDUWVWKDWUHTXLUH KLJKOHYHOWHFKQRORJ\

7KHSULFHSURSRVHGE\DOOWKUHHFRPSDQLHVKRZHYHUH[FHHGHGWKHWDUJHWSULFH 86' ELOOLRQ :KLOHWKHSULFHSURSRVHGE\0LWVXELVKLZDVZLWKLQWKHWDUJHWSULFHEDVHG on a simple comparison, if the standardization cost, financial and operational costs, and the costs of other economic performances were to be considered, it would have EHHQKLJKHUWKDQWKHSULFHSURSRVHGE\$OVWKRP)XUWKHUPRUHDOOWKHWKUHHFRPSDQLHV

 Chapter 3  UHFHLYHGRQ VVVDWLVIDFWRU\ QWKHSULFHVLQWKH UWKDQWKHSULFHVLQ RPHSURJUHVVZDV GWRPD[LPL]HWKH RXWK.RUHDQHHGHG ZDVORZ EHWZHHQ QFOXGHGZLWK6RXWK $OOWKHWKUHH QWHDPIHHOWKDWWKH RQUDWLRRIWKH6RXWK OXDWHGDQGQHJRWLDWHG ELOOLRQ $OVWKRP DQG RSRVDOVZHUHUHTXHVWHG HDP¶VWDUJHWSULFH ey assembly groups in South Korea was between Korea was between groups in South ey assembly eeping with the national interest. k k Furthermore, the number of Furthermore, 7KHILIWKSKDVHSURSRVDOHYDOXDWLRQIRFXVHGRQLPSURYLQJWKHOH $VDFRQVHTXHQFHRIWKHILUVWWRIRXUWKSURSRVDOHYDOXDWLRQVV 7KHIRXUWKSKDVHSURSRVDOVZHUHUHTXHVWHGRQ'HFHPEHU The three companies, however, were still reluctant about the technology transfer still reluctant about the technology transfer were The three companies, however, Korean companies were inadequate, and the proposals on the contract conditions and on the contract conditions and the proposals were inadequate, Korean companies VFKHGXOLQJZHUHQRWVDWLVIDFWRU\$OOWKHVHPDGHWKHQHJRWLDWLR DQG 0RUHRYHUWKHWHFKQRORJ\WUDQVIHUFRQWUDFWVFR proposal revisions was inevitable. request for additional DQGDQGWKHSDUWLFLSDWLRQUDWHRI6RXWK.RUHDQFRPSDQLHV )LIWK3KDVH3URSRVDO(YDOXDWLRQ )RXUWK3KDVH3URSRVDO(YDOXDWLRQ H[FOXGHGWKHFRUHWHFKQRORJ\IURPWKHWHFKQRORJ\WUDQVIHU made in the price and core technology. The overall conditions, however, did not meet The overall conditions, however, made in the price and core technology. WKHQHJRWLDWLRQWHDP¶VH[SHFWDWLRQV$VVXFKWKH¿IWKSKDVHSU RQ)HEUXDU\ZHUHUHFHLYHGRQ)HEUXDU\DQGZHUHHYD RQ0DUFK -DQXDU\DQGHYDOXDWHGDQGQHJRWLDWHGRQ-DQXDU\ FRPSDQLHVSURSRVHGSULFHVWKDWZHUHEHWZHHQDQGORZH WKHVHFRQGSKDVHSURSRVDOVDQGEHWZHHQDQGORZHUWKD WKLUGSKDVHSURSRVDOVDW86'ELOOLRQ 0LWVXELVKL 86' 86'ELOOLRQ 6LHPHQV JHWWLQJFORVHUWRWKHQHJRWLDWLRQW proposal, the number of assembly of core technologies, and as for the localization JURXSVLQ6RXWK.RUHDZDVPHUHO\DURXQGDQGWKHSDUWLFLSDWL amount of the price remained at around Korean companies to the total proposed 0HDQZKLOHLWZDVGHWHUPLQHGWKDWWKH¿QDQFLDOEXUGHQRI6 WREHPLQLPL]HGDQGDFFRUGLQJO\DQRWKHUUHYLVLRQZDVUHTXHVWH competition in the lesssatisfactory areas and to encourage the submission of better and to encourage the submission of better competition in the lesssatisfactory areas proposals that would be more in FRQGLWLRQVLQ¿QDQFHORFDOL]DWLRQDQGWHFKQRORJ\DQGRQUHGXFLQJWKHSURSRVHGSULFH In the review of the revised proposals, it was determined that the terms of repayment, such as the interest rate or contracted charges, were much improved, although there were some differences among the companies. In terms of technology transfer, the SURSRVDOVH[WHQGHGWKHVFRSHRIIUHHWHFKQLFDOWUDLQLQJDQGVXSSRUWDVZHOODVRIIHUHG GHWDLOHGWHFKQRORJLFDOGHYHORSPHQWSODQV6RPHRUDOORIWKHLWHPVH[FOXGHGIURP technology transfer were removed, and the number of assemblies in South Korea or the localization ratio was also greatly increased.

6L[WK3KDVH3URSRVDO(YDOXDWLRQ )LQDO(YDOXDWLRQ

$IWHUUHYLHZLQJWKHLQYHVWPHQWFRVWDQGFRQVWUXFWLRQSURFHVVRIWKH*\HRQJEX+LJK 6SHHG5DLO&RQVWUXFWLRQ3URMHFWRQ-XQHWKH6RXWK.RUHDQJRYHUQPHQW decided to revise some parts of the basic plan, such as the production process, vehicle supply schedule, and project scope.

7RDFTXLUHEHWWHUFRQGLWLRQVDQGWHFKQRORJLHVWKH¿QDOHYDOXDWLRQZDVFRQGXFWHGE\ DYHKLFOHQHJRWLDWLRQWHDPFRQVLVWLQJRIVSHFLDOLVWVIURPWKH$XWKRULW\DQGLQYDULRXV ILHOGV7KH6RXWK.RUHDQQHJRWLDWLRQWHDPFRQVLVWHGRIPHPEHUV WKH$XWKRULW\ 6KLQ .LP.RUHD'HYHORSPHQW%DQN)RUHLJQ([FKDQJH%DQNDQG%HFKWHO ZKLOH WKH)UHQFKQHJRWLDWLRQWHDPFRQVLVWHGRIPHPEHUV

$IWHUWKHFRQWUDFWQHJRWLDWLRQVIRUYHKLFOHLQWURGXFWLRQDQGFRUHWHFKQRORJ\WKDW ODVWHGIRUDERXWHLJKWPRQWKVWKHQHJRWLDWLRQWHDPDQQRXQFHGWKHUHVXOWVRQ$SULO %HORZDUHWKHUHVXOWVRIWKHQHJRWLDWLRQVIRUNH\LVVXHVVXFKDVWHFKQRORJ\ transfer and localization, as well as for technological issues, including warranty, thorough test drive, improvement of passenger facilities, and comfort of use.  3ULFH86'ELOOLRQ DQDERXWUHGXFWLRQIURPWKHKLJKHVWSURSRVHG SULFH   8QSUHFHGHQWHGWHFKQRORJ\WUDQVIHUDQGORFDOL]DWLRQRIRYHURIWKHSURGXFWLRQ cost  6HFXULQJWKHULJKWWRVXSHUYLVH+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\LQDOO technology transfer and localization processes  ,IWKHORFDOL]DWLRQIDLOHGWRPHHWWKHJRDORIWKHUHVWRIWKHDPRXQWZLOOEH paid as penalty.

 Chapter 3 HW  N PK N HWVRQ N IURPWKH  PDU RUOGPDU UHYLVHGFRQWUDFW LQVWZRSRZHU LW\RIWKHUHODWHG QLFDOIHHVVDOHV KHVRXUFHFRGHVIRU FLSDWLQJFRPSDQLHV HUDWLRQH[SHULHQFHV WLRQDQGD¿YH\HDU SHGWHFKQRORJLHVDQG UDLQLQJ PK N s performed k HVDIHW\VSHHG± N EUD QRLVHVRXUFH companies under the responsibility of the contract companies under the responsibility of the SDVVHQJHUYHKLFOHVJHQHUDOSDVVHQJHUYHKLFOHV conditions ZKLFKIXUWKHUQHJRWLDWLRQLVUHTXLUHG for unpredictable defects warranty after the contract over all the tas and scheduling ownership of the new technologies developed during the project ownership of the new WHFKQLFDOIHHVUHGXFHGIURPWR DGYDQFHPHQWULJKWV H[FHSWIRUWKH(XURSHDQDQG1RUWK$PHULFDQ ż 4XDOLW\FRQWURO%DVHGRQ,62DFKLHYLQJWKHWDUJHWTXDO ż 9HKLFOHDUUDQJHPHQWYHKLFOHVIRURQHJURXS WZRSRZHUWUD ż 7UDLQLQJ7HVWLQJWHVWGULYLQJRSHUDWLRQDQGLQVSHFWLRQW ż $LUFRQGLWLRQHU ż 3DVVHQJHULQIRUPDWLRQLQFKYLGHRPRQLWRUVLQVWDOOHG ż 3XEOLFSKRQH6L[SKRQHVSHUJURXS ż 2SHUDWLRQDOVRIWZDUH2IIHULQJRSHUDWLRQDOFRGHVRIIHULQJW ż 'DWDDQGGUDZLQJVFRQWURO&RQIRUPLQJWRWKHQHZGHVLJQDQG ż 1RLVHOHYHORISDVVHQJHUYHKLFOHVEHORZG%$ ż (QYLURQPHQWDOQRLVH/HVVWKDQ/PD[G%$ PHDVXUHGDWP ż 5XQQLQJVSHHG5XQQLQJVSHHGRIDQRUPDOIXQFWLRQLQJWUDLQ± a. Negotiations for the contract  7HFKQLFDOLVVXHV  *XDUDQWHHLQJWKH$XWKRULW\¶VULJKWWRXVHWKHDOUHDG\GHYHOR  ,QGLYLGXDODQGMRLQWUHVSRQVLELOLWLHVDPRQJFRQVRUWLXPSDUWL  'UDVWLFLPSURYHPHQWRIYDULRXVRWKHUFRQWUDFWFRQGLWLRQVRS  *XDUDQWHHLQJWKHSHUIRUPDQFHIRUWZR\HDUVDIWHUWKHDFTXLVL  2IIHUHGE\WKHFRQWUDFWRU  5HGXFWLRQRIWKHWHFKQRORJ\WUDQVIHUIHHV)UHHSUHSDLGWHFK  6HFXULQJWKHPDQXIDFWXUHU¶VSURGXFWLRQWHVWLQJVDOHVDQGZ &RQFOXGLQJWKH&RQWUDFW the software required for entering the variables ż ([WHULRUGHVLJQ(OHFWURQLFFDOFXODWLRQDQGZLQGWXQQHOWHVW ż 2IIHULQJGHVLJQVRIWZDUH  7HFKQRORJ\WUDQVIHUDQGORFDOL]DWLRQ ż 2IIHULQJWKHIXOOVFRSHOLFHQVH2IIHUHGWRDOOWKHWKUHH6RXWK.RUHDQ companies in charge of manufacturing the vehicles ż 6DOHVUHJLRQV:RUOGPDUNHW IXUWKHUQHJRWLDWLRQVIRU(&DQG1RUWK$PHULFD ż &DOFXODWLRQFRGHIRUWKHORFDOL]DWLRQUDWH'RPHVWLFSULFHWRWKHWRWDO SURGXFWLRQSULFH H[FOXGLQJEX\EDFNV ż $SSURYDORIWKHWHFKQRORJ\WUDQVIHUFRQWUDFW&RQFOXGLQJWKHWHFKQRORJ\ transfer contract among the companies over the vehicle parts, which takes HIIHFWDIWHUWKHDSSURYDOE\WKH$XWKRULW\ ż 1H[WJHQHUDWLRQ5 'WHFKQRORJLHV3DUWLFLSDWLQJLQWKHFRUHVHDUFKRQ )UDQFH¶VQH[WJHQHUDWLRQKLJKVSHHGUDLOWHFKQRORJ\ NPK DHURG\QDPLF technology while the vehicle is at a stop, and ten other research topics ż 7HFKQRORJ\WUDQVIHUDPRQJWKHFRPSDQLHV([HFXWHGDFFRUGLQJWRWKH technology transfer contract by the transfer company ż ,QWHOOHFWXDOFRS\ULJKWV  &RQWUDFWRU¶VRZQHUVKLSRIWKHDOUHDG\GHYHORSHGLQWHOOHFWXDOSURSHUWLHV $XWKRULW\¶VQRQH[FOXVLYHULJKWWRXVHWKHLQWHOOHFWXDOSURSHUWLHVIRUWKHKLJK speed rail project and within South Korea  2ZQHUVKLSRIWKHLQWHOOHFWXDOSURSHUWLHVDIWHUWKHFRQWUDFW$XWKRULW\RZQV WKHSDWHQWVDQGWKHFRQWUDFWRURZQVWKHQRQH[FOXVLYHULJKWWRXVHWKH intellectual properties ż *XDUDQWHHLQJWKHH[HFXWLRQRIWKHSURMHFW  *XDUDQWHHLQJWKHH[HFXWLRQRIWKHFRQWUDFW ż RIWKHWRWDODPRXQWRIWKHFRQWUDFW ż :DUUDQW\RYHUGHIHFWV ( 'HSRVLWRIWKHWRWDODPRXQWRIWKHFRQWUDFW ):DUUDQW\SHULRGPRQWKVDIWHUWKHDFTXLVLWLRQRUPRQWKVDIWHU)6& IXOOV\VWHPFRPPLVVLRQLQJ ZKLFKHYHUFRPHVODWHU ż 5HSD\PHQWRIGHIHUPHQW *5DWHRIWKHLWHPSHUGD\DIWHU)6& +0D[DPRXQWRIWKHWRWDODPRXQWRIWKHFRQWUDFW  6FKHGXOLQJ

 Chapter 3  UWRROV DFWXULQJ DWLRQRIWKH MHFWSODQRU HQHJRWLDWLRQ KHWKLUGSDUW\ \HDUV RIIHULQJ UHD&RPPHUFLDO WULOOLRQ RORJ\WUDQVIHURI DLQWHQDQFHUHSDLU DUHVKRZQEHORZ ZQHU+LJK6SHHG5DLO  EDVLFGHWDLOHGDQGSURGXFWLRQGHVLJQV  N V86'ELOOLRQ N V))UELOOLRQ N RXWFRPHV7KH$XWKRULW\RZQVWKHFRS\ULJKWV N DUELWHULVDSSRLQWHGE\.RUHD&RPPHUFLDO$UELWUDWLRQ%RDUG $UELWUDWLRQ%RDUGERWKSDUWLHVDSSRLQWRQHDUELWHUHDFKDQGW JXLGHOLQHVVXSSO\LQJWKHSURYLVLRQSDUWVDQGPDLQWHQDQFHUHSDL HVWDEOLVKLQJDQGH[HFXWLQJWKHPDLQWHQDQFHUHSDLUSODQ IRUWZR various services, etc. material supply, supervision of the installation and detailed design, testing and supervision of the installation and material supply, preparation for the operation WKH)UHQFKFRPSDQ\WKHFRQWUDFWRUDQGRYHURIWKHORFDOL] equipment production price manufacturing, delivery of the completed vehicles, testing and preparation for manufacturing, delivery of the completed the operation construction plan. construction  7DV  7HFKQLFDOGDWDWUDLQLQJDQGWHFKQLFDOVXSSRUWIRUWKHWHFKQ  7UDLQLQJWHVWLQJDQGWHVWGULYLQJFUHDWLQJRSHUDWLRQDQGP  0HGLDWLQJGLVSXWHV%DVHGRQWKHPHGLDWLRQUHJXODWLRQVRI.R  'HVLJQ EDVLFDQGSURGXFWLRQGHVLJQV RIWKHFDWHQDU\PDQXI  'HVLJQRIJURXSVRIUROOLQJVWRF ż7KHYHKLFOHGHOLYHU\VFKHGXOHVKRXOGFRQIRUPWRWKHWRWDOSUR ż6RXWK.RUHDQDQGIRUHLJQGHOLYHU\OHYHO&)5RU)2%SULFH  7RWDODPRXQWRIWKHFRQWUDFW86'ELOOLRQ DERXW86'  )RUHLJQWDV  'RPHVWLFWDV b. Concluding the contract on the introduction of vehicles and core system and core of vehicles introduction the contract on the b. Concluding 2Q-XQHDERXWWZRPRQWKVDIWHUWKHDQQRXQFHPHQWRIWK  .H\FRQWUDFWFRQGLWLRQV  6XSSO\VFRSH  3ULFH results, the contract on the introduction of vehicles and core system was concluded. system was concluded. on the introduction of vehicles and core results, the contract 7KHSULFHDQGVXSSO\VFRSHLQWKHFRQWUDFWVHDOHGEHWZHHQWKHR &RQVWUXFWLRQ$XWKRULW\DQGWKHVXSSOLHU.RUHD7*9&RQVRUWLXP  ,QVSHFWLRQDQGWHVWLQJ7KH$XWKRULW\UHVHUYHVWKHULJKWWRUHYLHZUHTXHVWSURRI for, attend to, and reject the tasks or delivered goods if these do not conform to the contract provisions.  5LJKWWRDXGLW7KH$XWKRULW\RZQVWKHULJKWVIRUFODLPVDQGFRVW reimbursement, and reserves the right to investigate if the target localization has been achieved.  ,QWHUIDFHPDQDJHPHQW7KHLQWHUIDFHPDQDJHPHQWUHVSRQVLELOLWLHVVKDOOEH shared by the contractor and the concerned companies, and shall include the related tasks.  ,QWHOOHFWXDOFRS\ULJKWV6HFXULQJWKH$XWKRULW\¶VULJKWWRXVHWKHDOUHDG\ developed intellectual properties as well as the right to own the intellectual properties developed during the project  &RQWUDFWRU¶VOLDELOLW\IRUUHSDUDWLRQ:LWKLQRIWKHWRWDOFRQWUDFWDPRXQW against the direct damages or claims that may arise during the project  5LJKWWRFDQFHOWDVNV7KH$XWKRULW\UHVHUYHVWKHULJKWWRVWRSVRPHRUDOORIWKH related tasks.

c. Sealing the contract on the introduction of public loans $QRWKHULPSRUWDQWWDVNRIWKH$XWKRULW\ZDVWRVXSSO\DODUJHDPRXQWRIWKHIXQG IRUDFTXLULQJYHKLFOHVDQGFRUHHTXLSPHQWWKURXJKDORQJWHUPDQGORZLQWHUHVWORDQ ,WZDVSDUWO\EHFDXVHRI)UDQFH¶VH[WHQVLYH¿QDQFLDORIIHUWKDWWKH$XWKRULW\VHOHFWHG )UDQFH 7*9 DVLWV³SULRULWL]HGQHJRWLDWLQJSDUWQHU´7RLQLWLDWHWKHORDQEDVHGRQ VXFKD¿QDQFLDORIIHUWKH6RXWK.RUHDQJRYHUQPHQWHVWDEOLVKHGWKH3XEOLF/RDQ ,QWURGXFWLRQ3ODQZLWKWKH6RXWK.RUHDQJRYHUQPHQWDVWKHORDQHUDQGDFTXLUHGWKH 1DWLRQDO$VVHPEO\¶VDSSURYDOIRUVXFKRQ'HFHPEHU (YHQDIWHUWKHDSSURYDOE\WKH1DWLRQDO$VVHPEO\WKH6RXWK.RUHDQJRYHUQPHQW ZDVQRWVDWLVILHGZLWK)UDQFH¶VILQDOVL[WKSKDVHSURSRVDO7KXVIRUDGGLWLRQDO improvement of the financial conditions, it entered into a financial negotiation with ,QGRVXH]%DQNIRU¿YHPRQWKVIURP-DQXDU\$IWHUDJUHHLQJRQWKHORDQWHUP VKHHWWKHWZRSDUWLHVVLJQHGWKHFRQWUDFWRQ0D\/DWHURQ$XJXVWWKH ORDQFRQWUDFWZDVVHDOHGEHWZHHQORDQEDQNDVVRFLDWLRQVLQFOXGLQJ,QGRVXH]%DQN and the former Ministry of Finance, which represented the South Korean government. $VWKHRXWFRPHRIWKHWZR\HDUDQGDKDOIORQJQHJRWLDWLRQVWKLVFRQWUDFWDOORZHGD WRWDORI86'ELOOLRQZRUWKRIORDQVIRULQWURGXFLQJYHKLFOHVDQGFRUHHTXLSPHQW E\ZD\RIWKHH[SRUWFUHGLWVJXDUDQWHHGE\&2)$&(DQGWKHH[SRUWWLHGORDQZKLFK

 Chapter 3  WKH SROLF\7R HTXLSPHQW YLGHYDULRXV QLVWHUDQGWKH KH0LQLVWU\RI LFKZDVVHOHFWHG HTXLSPHQWFRVWV REWDLQLQJSXEOLF deferment) RULW\¶VIRUHLJQORDQ *HUPDQ\ WHUPVRILQWHUHVWUDWHV 15 years (including 8 years DJH7KLVDOORZHGWKH6RXWK.RUHDQ N CIRR Libor + 0.75 (average) LQGRIFDVKORDQDQGVLQFHDIWHU$XJXVW deferment) N USD 1,915 million USD 825 million 18 years (including 8 years

Key Loan Conditions Agreed upon by the National Assembly Loan Conditions Agreed upon by 3-3> Key

Final loan Conditions

Category Export Finance Tied Contrast amount USD 1.617 billion USD 720 million Interest rate 6.25% confirmed based on CIRR Libor + 0.57% 10-year redemption by 7-year redemption by Terms installment installment (8 years deferment) (8 years deferment) Management charges: 0.4% Management charges: 0.7% Charges Contract charges: 0.28% per year Contract charges: 0.3% per year Capitalization Interest and insurance premium Interest Foreign-equipment purchases, Advance, South Korean exports insurance premium, equipment purchases, Usage interest and market price interest during the increase during the construction construction Note: Based on the vehicle contract results on June 14, 1994, the loan amount was reduced from that agreed upon by the National Assembly. Source: Korea Rail Network Authority (2011)

 Chapter 3  HVFDXVHGE\ LHVLQWKH86 LGXDOFDOOVDQG GUDLOSURSRVDOV DUULHUV\VWHPE\ HVIURPWKH86 EHWZHHQODQGDQG UROIXQFWLRQVRIWKH VWHPDQGDOOWKUHH P]RQHV DZDVFKRVHQDVWKH WKHQHJRWLDWLRQWHDP WKHQHZVSDSHUVLQ QJLQWKHSURMHFW 6'PLOOLRQZKLFK UDLQV HGIRUWKHSURSRVDORIDIUHTXHQF\ N trains highvoltage lines around the railway doubling the principal equipment and parts land and train systems %DVLF&RQGLWLRQVRIWKH7UDLQ:LUHOHVV6\VWHP! d. Concluding the train wireless communication system supply contract system supply communication train wireless the d. Concluding would be system the train wireless communication planned that It was originally $VRI0D\WKHGHDGOLQHIRUWKHSURSRVDOVRQO\WZRFRPSDQ  6HFXULQJWKHUHOLDELOLW\WKURXJKWKHHVWDEOLVKPHQWRIDQRE  7KHFHQWUDOFRPPDQGFHQWHUFDQSHUIRUPVXUYHLOODQFHDQGFRQW  6HFXULQJVXIILFLHQWGDWDDQGYRLFHFRPPXQLFDWLRQFDSDFLWLHV  (I¿FLHQWVXSSRUWRIWKHFHQWUDOL]HGFRQWUROV\VWHPIRUDOOW  =HURGLVWXUEDQFHV\VWHPLQVXVFHSWLEOHWRHOHFWURPDJQHWLFZDY  $OORZLQJHPHUJHQF\FDOOVJHQHUDOFDOOVDQGJURXSDQGLQGLY  6HFXULQJWKHFRPPXQLFDWLRQ]RQHLQRYHURIDOOWKHV\VWH ZDVaORZHUWKDQWKHDPRXQWLQGLFDWHGLQWKHKLJKVSHH was superior to, and its functions were more The performance of the resulting system GLYHUVHWKDQWKRVHLQWKHSUHYLRXVO\SURSRVHGV\VWHPV$VVXFK systems in all areas of the high speed rail was able to integrate wireless communication V\VWHPUHVXOWLQJLQHI¿FLHQWRSHUDWLRQV FRXQWULHVLQFOXGLQJWKH868.DQG*HUPDQ\VHYHQFRPSDQL the negotiation after negotiations with the company, and prioritized negotiation partner, WHDPFRQFOXGHGDFRQWUDFWZLWKLWRQ$SULODWDERXW8 countries proposed the wireless communication system that was in use in their own in their own that was in use communication system the wireless countries proposed and the proposed and in the analog format, was old equipment, however, This country. DPRXQWZDVWRRKLJK7KXVWKHQHJRWLDWLRQWHDPDV Thus, but no proposal was satisfactory. on digital technology, sharing method based core system and was system was separated from the the train wireless communication RUGHUHGLQGHSHQGHQWO\$IWHUWKHFDOOIRUSURMHFWSURSRVDOVLQ )UDQFH*HUPDQ\DQG6ZLW]HUODQGVKRZHGLQWHUHVWLQSDUWLFLSDWL consisting of scholars which were reviewed by a committee submitted proposals, DQGUHVHDUFKHUVLQ6RXWK.RUHDDQGDEURDG$VDUHVXOW0RWRURO HVWDEOLVKHGE\WKHH[FOXVLYHSURSRVDOWRJHWKHUZLWKWKHFRUHV\ allowing the setting of calling priorities  $OORZLQJKDQGRYHUDWDKLJKVSHHG RYHUNPK

4. Technology Transfer and Localization

The agreement between both parties on the technology transfer and localization WKURXJKWKHVL[SKDVHQHJRWLDWLRQDQGWKHUHVXOWLQJFRQWUDFWZHUHVPRRWKO\H[HFXWHG LQWKHFRQVWUXFWLRQRI*\HRQJEX+LJK6SHHG5DLODQGWKHYHKLFOHSURGXFWLRQSURFHVV $VDUHVXOWEHIRUH$SULOZKHQWKHILUVWVWDJHRI*\HRQJEX+LJK6SHHG5DLO opened, all the agreements were realized as planned.

4.1 Vehicle Production

$FFRUGLQJWRWKHFRQWUDFWWKHLQLWLDOJURXSVRIYHKLFOHVRXWRIWKHWRWDORI groups would be produced in France and assembled in South Korea while the rest of WKHJURXSVZRXOGEHSURGXFHGDQGDVVHPEOHGLQ6RXWK.RUHD7KHLQLWLDOJURXSV RIYHKLFOHVZHUHSURGXFHGLQIDFWRULHVLQ)UDQFH%HOJLXPDQGWKH8.IURP and were brought to South Korea from 1998, and after the assembly, vehicle tests, and WHVWGULYHVWKH\ZHUHLQWURGXFHGWR.RUHDQ1DWLRQDO5DLOURDG$XWKRULW\IRUWZR\HDUV from 1999.

5RWHP,QFWKHODUJHVW6RXWK.RUHDQUDLOZD\YHKLFOHSURGXFHUEHJDQSURGXFLQJ the vehicles that were planned to be produced in South Korea, manufacturing and DVVHPEOLQJWKHORFRPRWLYHVSDVVHQJHUDQGORFRPRWLYHSDVVHQJHUYHKLFOHVDQGMRLQW ULQJV7KHVHYHKLFOHVZHUHSURGXFHGLQSKDVHVEHJLQQLQJLQIRUWZR\HDUVDQG ZHUHJUDGXDOO\EURXJKWLQWR.RUHDQ1DWLRQDO5DLOURDG$XWKRULW\E\

4.2 Technology Transfer

7KHWHFKQRORJ\WUDQVIHUUHODWHGWRYHKLFOHVFRQFHUQHGDOOWKHSDUWVDQGDX[LOLDULHV UHTXLUHGIRUWKHSURGXFWLRQRIYHKLFOHVHOHFWULFFDUOLQHVDQGWUDLQFRQWURODQGWKH DJUHHPHQWZDVIRUWKHFRQWUDFWRUWRRIIHUWHFKQLFDOGDWDFRQVLVWLQJRIDWRWDORI LWHPVDVZHOODVWHFKQLFDOGRFXPHQWVDQGWRWUDLQDQGSURYLGHVXSSRUWIRU WHFKQLFLDQV6XFKWHFKQRORJ\WUDQVIHUFRQWUDFWVXEVHTXHQWO\SURFHHGHGZLWKRXW

 Chapter 3  s were s were k SDVVLQJWKH ZHUHEURXJKWWR HWHGLQDQG HGLQ)UDQFHZHUH HVZDVFRPSOHWHG YHKLFOHSURGXFWLRQ WKRPWKHORFRPRWLYH ORFDOL]DWLRQUDWLR KDWFRQ¿UPHGWKHRI¿FLDO VVXFK¿YH\HDUVDIWHUWKH WSKDVHRIWKHORFDOL]DWLRQ ills. This was completed in ills. k 892 people 1,027 people 115.1 1,120 people 1,194 people 106.6

Progress of the Technology Transfer Technology of the 3-5> Progress

7KHDFWXDOORFDOL]DWLRQUDWLRRIWKHYHKLFOHVHOHFWULFFDUOLQHVDQGWUDLQFRQWURO GHYLFHVWKURXJKWHFKQRORJ\WUDQVIHUDFFRUGLQJWRWKHORFDOL]DWLRQFRQWUDFWZDV DWWKHHQGRI1RYHPEHUH[FHHGLQJWKHWDUJHWUDWLRLQWKHFRQWUDFW  

Localization Outcomes of the Vehicles and Parts

Category Localization Scope 1st Phase Reassembling, testing, and test driving of two (two sample train sets) sample train sets (KTX 1, 2) in South Korea Vehicles 2nd Phase Assembling, testing, and test driving of train sets (KTX (~10/2003) (10 train sets) 3-12), and manufacturing joint rings in South Korea 3rd Phase Reassembling, testing, and test driving of 34 (34 train sets) train sets (KTX 13-46) in South Korea 1st Phase Localization of primary and secondary parts, Electric-car (sample line section) small steel parts line (12/1996- nd 12/2001) 2 Phase (sections Localization of all parts (excluding the items except the test section) that offer no economic value) 1st Phase Introducing foreign materials; some parts are Train control (testing section) assembled in South Korea device (03/1995- nd 10/2003) 2 Phase Manufacturing basic parts; assembling and (Gwangmyeong-Daegu) testing key parts Source: Ministry of Construction and Transportation, KICTEP (2007)

 Chapter 3   3LRQHHULQJ I6FLHQFH  OOLRQIURPWKH RQRYHUFRPLQJ PXPRSHUDWLRQDO RDORIWKHSURMHFW 7HFKQRORJ\DVLWV URPRWHGWKHSURMHFW HVHDUFKLQVWLWXWHVDQG RMHFWZDVSDUWLFLSDWHGLQ - Developing an independent 350 km/h testing evaluation technology and creating - Developing an independent 350 km/h testing evaluation and test driving the sample vehicle system engineering - Acquiring the original design technology and independent technology technology - Developing an independent railway line structure design - Determining the next-generation South Korean system specifications and - Determining the next-generation South Korean system detailed design first sample of the signal - Manufacturing the sample vehicle and developing the device technical personnel - Developing an original design technology and producing - Developing a railway line structures design technology PKDQGZKLOHVHFXULQJFRUHWHFKQRORJLHV´$WRWDORI.5: N

Milestones of the Korean High Speed Rail Technology Development Project Development Speed Rail Technology High of the Korean 3-7> Milestones

Core Technologies of the Korean High Speed Rail System

Korean High Speed Rail Category KTX Remark System (G7 Project) Max. operation speed 350 km/h 300 km/h Aerodynamic Front South Korean TGV design Material Body Aluminum Mild steel technology Pulling motor Induction motor Synchronous motor Main power converter IGCT GTO (power device) Pressure control Pressurization system Ventilation openings system Friction, regeneration, Friction and Braking system eddy current regeneration Source: Ministry of Construction and Transportation, KICTEP (2007)

 Chapter 3 P  LQJ N N FWUDLQ VHVVPHQW VH YHKLFOH DQDO\VLVDQG LFH LQJHWF N VWVSHHGRI

Key Outcomes of the G7 Project 3-9> Key

7KH+LJK6SHHG5DLO6\VWHP7HFKQRORJ\'HYHORSPHQW3URMHFWZDVFRQGXFWHGLQ WDQGHPZLWKWKH*3URMHFWZKRVHJRDOZDVWRHVWDEOLVKDVWDEOHUHOLDEOHDQGVDIH V\VWHPIURPWKH.RUHDQ+LJK6SHHG5DLO6\VWHPGHYHORSHGLQWKH*3URMHFW7KH WHUPRIWKHSURMHFWZDVSODQQHGWREHILYH\HDUVIURP'HFHPEHUWR2FWREHU DQGWKHWRWDOEXGJHWIRUWKHSURMHFWZDV.5:ELOOLRQ .5:ELOOLRQ IURPWKH6RXWK.RUHDQJRYHUQPHQWDQG.5:ELOOLRQIURPWKHSULYDWHVHFWRU 

%HORZDUHWKHNH\UHVHDUFKWRSLFVIRUWKHSURMHFW  6WDEOHDQGSUDFWLFDOWHFKQRORJ\GHYHORSPHQWE\DFTXLULQJWKHUHOLDELOLW\RI WKH.RUHDQ+LJK6SHHG5DLO6\VWHP  7HFKQRORJLFDOGHYHORSPHQWRIDQLQWHJUDWHGSDVVHQJHUIUHLJKWWUDQVSRUWDWLRQ system  (VWDEOLVKLQJDKLJKVSHHGUDLOV\VWHPWKDWPHHWVERWKWKHVDIHW\DQG performance standards  'HYHORSLQJ6RXWK.RUHD¶VRZQPXOWLSOHSURSXOVLRQV\VWHPWHFKQRORJ\

)RUWKHHIIHFWLYHSURPRWLRQRIWKHUHVHDUFKWKHSURMHFWZDVGLYLGHGLQWRWZRSDUWV   UHOLDELOLW\DQGVDIHW\V\VWHPGHYHORSPHQWDQG  V\VWHPVWDELOL]DWLRQ

3URJUHVVRIWKHSURMHFW

The project was led by the Ministry of Construction and Transportation, and research LQVWLWXWHVLQFOXGLQJ.RUHD5DLOURDG5HVHDUFK,QVWLWXWHDVWKHPDLQUHVHDUFKERG\ZHUH VHOHFWHGEDVHGRQHLJKWREMHFWLYHV7KHSURMHFWVWDUWHGLQ'HFHPEHUDQGZHQWRQ IRU¿YH\HDUVDQGWKHWZRREMHFWLYHVGHYHORSPHQWRIDKLJKVSHHGUDLOSHUIRUPDQFH standard and safety system, and development of a high speed rail vehicle development V\VWHPZHUHFRPSOHWHGLQWKHIRXUWK\HDUZKLOHWKHUHVWRIWKHVL[REMHFWLYHVZHUH SXUVXHGXQWLOWKH¿IWK\HDU

7KHPD[LPXPVSHHGRIWKHKLJKVSHHGUDLOV\VWHPGHYHORSHGE\WKH*3URMHFWZDV NPKZKLFKZDVIDVWHUWKDQNPKRIWKHH[LVWLQJ.7;DQGWKHQHZKLJK VSHHGUDLOV\VWHPVWDUWHGWRRSHUDWHLQ0DUFK

 Chapter 3 

Key Research Topics by Objective by Topics Research Key 3-10>

6. Selection of the Construction Companies and Construction of the Test Railway Section

6.1 Selection of the Construction Companies

)RUWKHELGGLQJPHWKRGIRUVHOHFWLQJDFRQWUDFWRUIRUWKH*\HRQJEX+LJKVSHHGUDLO 3URMHFWSUHTXDOLILFDWLRQ 34 ZDVFKRVHQVRWKDWRQO\TXDOLILHGFRPSDQLHVFRXOG SDUWLFLSDWHLQWKHELGGLQJ,QDGGLWLRQWKHRSHQFRPSHWLWLRQSULQFLSOHZDVXVHGIRU WKRVHZKRZHUHVHOHFWHGYLD34DQGFRQVLGHULQJYDULRXVFRQGLWLRQVRQHFRQVWUXFWLRQ zone was set to be around 10 km to promote clear construction and to accumulate WHFKQLFDOH[SHULHQFH

%LGGLQJ3URFHVV

7RKDYHDKHDOWK\DQGH[FHOOHQWFRQWUDFWRUZKRZRXOGXVHDGYDQFHGFRQVWUXFWLRQ equipment and highly skilled personnel to complete the project within the given term, DQGZKRZRXOGFRQGXFWLQWHUQDWLRQDOOHYHOTXDOLW\FRQWURODQGSURFHVVFRQWUROWKH34 V\VWHPZDVXVHGDVDELGGLQJSURFHVVIRUDOOWKHELGGLQJSDUWLFLSDQWV:KLOHDOORZLQJ DMRLQWYHQWXUHFRQWUDFWWRH[WHQGWKHELGGLQJRSSRUWXQLW\WRVPDOODQGPLGGOHVL]HG companies, and for technology accumulation, measures were also implemented in the ELGGLQJSURFHVVWRSUHYHQWSRRUFRQVWUXFWLRQGXHWRDMRLQWYHQWXUHFRQWUDFWE\RQO\ VPDOODQGPLGGOHVL]HGFRPSDQLHV

,PSURYHPHQWRIWKH%LGGLQJ3URFHVV

7KHVHFRQGSURMHFWSODQUHYLVLRQLQ6HSWHPEHUVWUHQJWKHQHGWKHTXDOL¿FDWLRQV RIWKHFRQWUDFWRUVDQGOLPLWHGWKHQXPEHURIMRLQWYHQWXUHFRQWUDFWRUV6SHFLILFDOO\ WKHUHYLVLRQSODQDOORZHGWKHSDUWLFLSDWLRQRIFRPSDQLHVWKDWKDGOLWWOHH[SHULHQFHLQ EULGJHDQGWXQQHOFRQVWUXFWLRQDQGWKDWKDGIHZFRQWUDFWOLPLWVDQGDOORZHGXSWR¿YH

 Chapter 3  VDQG N KDWZDVWR KLFKZDVWROHDG LQWKH¿UVWKDOIRI HURIFRPSDQLHVLQ HVDQGSULRULW\ZDV FWLRQZDVVHOHFWHGDV HFRXUVHWUDF ZDVQHFHVVDU\IRUWKH HPKDGWUDLQVUXQQLQJ LWLHVQHDUE\DVVXFKLW VHGWKHFRQWUDFWDPRXQW WRSRRUFRQVWUXFWLRQ  IRUHWKHFRPPHQFHPHQW LQJFHUHPRQ\RQWKHWHVWUDLOZD\ P DPRQJWKHVHYHQWHVWUDLOZD\ N N s, which were required for the test. Moreover, while while s, which were required for the test. Moreover, k PKDQGEHFDXVHWKHV\VWHPZDVDVWDWHRIWKHDUWWHFKQRORJ\W N Speed Rail System 6LQFHDIWHUWKHWDUJHWSURFHVVZDVFRPSOHWHGLQDQG ,Q0DUFK.RUHDQ+LJK6SHHG5DLO&RQVWUXFWLRQ$XWKRULW\Z $WHVWVHFWLRQZDVFRQVWUXFWHGEHFDXVHWKHKLJKVSHHGUDLOV\VW 7.1 Completion of the First-Phase Construction Project, and Execution of a Project, 7.1 Completion of the First-Phase Construction Run Test Commercial &RPSOHWLRQRIWKH)LUVW3KDVH&RQVWUXFWLRQ3URMHFW 7. and Operation of the High Preparation for the Opening 6.2 Commencement of the Test Railway Section Test of the 6.2 Commencement FRPSDQLHVWRVXEPLWDMRLQWYHQWXUHFRQWUDFWZKLFKPLJKWOHDG FRPSDQLHVLQFRQVWUXFWLRQ]RQHV 7KXVWKHUHYLVHGSODQUDL OLPLWWR.5:ELOOLRQIURP.5:ELOOLRQ)XUWKHUWKHQXPE JLYHQWRFRPSDQLHVWKDWKDGDFTXLUHG,62TXDOLW\FHUWL¿FDWLRQ DMRLQWYHQWXUHFRQWUDFWZDVDGMXVWHGIURP¿YHWRWKUHHFRPSDQL WKHFRQVWUXFWLRQRIDOOIDFLOLWLHVLQFOXGLQJWKHVXEEDV power facilities, was completed, and from May, the high speed vehicle was placed the high speed vehicle was placed power facilities, was completed, and from May, WKHUHJLRQZDVUHODWLYHO\FORVHWR6HRXOWKHUHZHUHQRODUJHF the project, was established, and the practical procedure for the commencement of the and the practical procedure for the the project, was established, SURMHFWEHJDQ2Q-XQHWKHJURXQGEUHD and vibration generated in the test operation. by the noise would be less affected RYHU EHLPSOHPHQWHGLQ6RXWK.RUHDIRUWKH¿UVWWLPH7KHUHIRUHLW SURMHFWWRJRWKURXJKVXI¿FLHQWSHUIRUPDQFHDQGVDIHW\WHVWVEH VHFWLRQ>WKHILUVWIRXUFRQVWUXFWLRQ]RQHV  VHFWLRQV@ZDVKHOG RIWKHFRQVWUXFWLRQLQDOOWKHVHFWLRQV7KH&KHRQDQ'DHMHRQVH the test section because this region had various topological characteristics, such as various topological characteristics, such as the test section because this region had tunnels, bridges, and earthwor LQWKH*\HRQJP\HRQJ&KHRQDQ]RQHIRUWKHSHUIRUPDQFHRIDIDFLOLW\SHUIRUPDQFH WHVW0RUHRYHUWKHVXEVWDWLRQDW%XVDQ9HKLFOH'HSRWWKH¿QDOVXEVWDQFHLQWKH¿UVW SKDVH]RQHVXFFHVVIXOO\VWDUWHGUHFHLYLQJHOHFWULFLW\RQ2FWREHUDQGDOOWKH seven substances that were to offer power to high speed vehicles, and the supporting facilities, were ready for operation. Thus, the power supply preparation for the NPORQJ¿UVWSKDVHVHFWLRQZDVFRPSOHWHG

0HDQZKLOH6HRXO6WDWLRQVWDUWHGLWVRSHUDWLRQRQ1RYHPEHUWRSUHSDUHIRU WKHRI¿FLDORSHQLQJLQ$SULODQGWKHFRQVWUXFWLRQRI&KHRQDQ$VDQ6WDWLRQZDV ¿QDOL]HGDWWKHHQGRIDQGZDVFRPSOHWHGWRZDUGVWKHHQGRI0DUFKDIWHU continuous performance testing and supplementary construction of passenger facilities. 7RZDUGVWKHHQGRI$SULORIWKHVDPH\HDU*ZDQJP\HRQJ6WDWLRQZDVDOVRFRPSOHWHG The revision of Busan, Daejeon, and Dongdaegu Stations was completed towards the HQGRI6HSWHPEHU

7KH¿QDO.7;1RZDVVKLSSHGRXWRQ1RYHPEHUDQGVLQFH2FWREHU RIWKHVDPH\HDUDQLQWHJUDWHGWHVWGULYHLQFRRSHUDWLRQZLWK.25$,/KDGEHHQ conducted between Seoul and Busan.

&RPSOHWLRQRIWKH7HVW'ULYHDQG([HFXWLRQRID&RPPHUFLDO7HVW'ULYH

$IWHUWKHLUDFTXLVLWLRQWKHKLJKVSHHGUDLOYHKLFOHVZHUHVXEMHFWHGWRDQLQWHJUDWHG WHVWWRFRQ¿UPWKHFRPSUHKHQVLYHSHUIRUPDQFHRIWKHV\VWHP7KHLQWHJUDWHGWHVWZDV SHUIRUPHGWRYHULI\YDULRXVSHUIRUPDQFHLVVXHVRIHDFKV\VWHP HJYHKLFOHWUDFN SRZHUVLJQDOFRPPXQLFDWLRQ&7& ZKLOHWKHWHVWYHKLFOHZDVUXQQLQJRQWKHUDLOZD\ where it was to operate, to discover and address any potential problem in advance.

The integrated test, targeting all the railway sections, was performed in tandem with WKHWUDLQRSHUDWLRQWLPHDQGHQHUJ\FRQVXPSWLRQ7KH*ZDQJP\HRQJ%XNGDHMHRQ VHFWLRQ NP LQFOXGLQJWKHWHVWUDLOZD\VHFWLRQXQGHUZHQWWKHUXQQLQJWHVWDW NPKIURP-XO\WR$XJXVWDQGWKHWHVWGULYHZDVH[WHQGHGWRWKH 'DHMHRQ'DHJXVHFWLRQIURP2FWREHUWR1RYHPEHULQWKHVDPH\HDU

7KHWHVWGULYHRQWKH'DHMHRQ'DHJX]RQHPHDVXUHGWKHWUXFNYLEUDWLRQDFFHOHUDWLRQ of the KTX vehicle, the derailing rate of the electric railway line, the performance of

 Chapter 3  N  UWZR [LVWLQJUDLOZD\ RQHGLVSDWFKHG H.7;WHVWGULYH WLRQ$XWKRULW\ QGHGWR6HRXODQG RIILFLDORSHQLQJRI SUHSDUDWLRQIRUWKH WU\RI&RQVWUXFWLRQ QWHJUDWHG2SHUDWLRQ PKRQ1RYHPEHU WLRQEHJDQRSHUDWLQJ OVWDUWRIWKHVHUYLFH DQGUHTXLUHVKLJKHU N LRQ HOGWRUHJXODUO\FKHF +LJKVSHHGUDLO2SHUDWLRQ PK7KHUXQQLQJWHVWDW N )RUFH7HDP WHDPOHDGHUDVHFUHWDU\RQHDGPLQLVWUDWLYHRI¿FH N $IWHUFRPSOHWLQJWKHUXQQLQJWHVWEHWZHHQ'DHMHRQDQG'DHJXWK $VRIWKHHQGRI-DQXDU\DQLQWHJUDWHGRSHUDWLRQRUJDQL]D $VWKHKLJKVSHHGUDLOVKRXOGEHGLIIHUHQWLDWHGIURPWKHWKHQH VDWLV¿HGDOOWKHVWDQGDUGYDOXHVDQGZDVFRPSOHWHG WKDWKDGEHHQSHUIRUPHGRQO\EHWZHHQ6HRXODQG'DHMHRQZDVH[WH business operations, was performed, which assumed normal a commercial test drive onboard. with the staff 3UHSDUDWLRQIRUWKH2I¿FLDO6WDUWRIWKH6HUYLFH 2UJDQL]DWLRQRIWKH3UHSDUDWLRQIRUWKH,QWHJUDWHG2SHUDW 'DHJXXQWLOWKHHQGRI)URP-DQXDU\XQWLOWKHRI¿FLD the power supply system, and the wireless communication system while increasing the increasing system while communication and the wireless system, supply the power VSHHGLQVL[VWDJHVIURPWR DVDPDQDJHUKDGEHHQDVVLJQHGIRUHDFKRSHUDWLRQSUHSDUDWLRQ¿ WKHVWDWXVRIWKHSUHSDUDWLRQ,Q$XJXVWRIWKHVDPH\HDUWKH 3UHSDUDWRU\7DV VL[JUDGHRI¿FHUVWZRGLVSDWFKHGVWDIIPHPEHUVIURP.25$,/DQG VWDIIIURPWKH$XWKRULW\ ZDVH[SDQGHGDQGUHRUJDQL]HGIRUWKH the service, and for the subsequent operations. The preparatory plan was divided into the service, and for the subsequent operations. VHYHQSURSXOVLRQ¿HOGVHDFKRIZKLFKZDVDVVLJQHGWRWKH0LQLV DQG7UDQVSRUWDWLRQ.25$,/DQG.RUHDQ+LJK6SHHG5DLO&RQVWUXF operation. 3UHSDUDWRU\3ODQ´LQ'HFHPEHUIRUWKHSUHSDUDWLRQIRUWKH VHUYLFHTXDOLW\WKH6RXWK.RUHDQJRYHUQPHQWHVWDEOLVKHGWKH³, RSHUDWLRQV\VWHPDVLWLVRSHUDWHGE\DVWDWHRIWKHDUWV\VWHP

Key Issues of the Integrated-Operation Preparatory Plan

Category Unit Task Operation organization - Construction of the operational organization and personnel training - Personnel training and control - Reorganization of the operation system and regulations - Establishment of an integrated train operation plan - Establishment of an integrated information system Operation system - Establishment of safety and security measures and business - Establishment of a tied-transport system strategy - Securing the operation facilities and operating amenities - Establishing marketing strategies - Developing auxiliary-profit projects - Strengthening the international cooperation - Test drive of individual systems Test driving - Integrated test operation - Organization of the test operation and control agency Maintenance/ - Maintenance/repair of high speed trains repair - Maintenance/repair of infrastructure facilities Transfer and - Data control and transfer acquisition - Transfer/acquisition of assets and debts Preparation for - Final checkup before officially starting the service the official start of - Notice of confirmation of the official service start date the service - Formulating the opening-ceremony plan Source: Korea Rail Network Authority (2011)

&RQFOXGLQJD%XVLQHVV$JUHHPHQWEHWZHHQWKH$XWKRULW\DQG.25$,/

,Q-XQHLQWKHSURFHVVRISUHSDULQJIRUWKHVWDUWRIWKHRSHUDWLRQRIWKH+LJK 6SHHG5DLO6\VWHPWKH5DLOURDG,QGXVWU\6WUXFWXUH5HIRUP0DQDJHPHQW$FWZDV established, which effectively separated the construction and operation subjects. 7KH$XWKRULW\DQG.25$,/WKXVFRQFOXGHGDEXVLQHVVDJUHHPHQWLQ6HSWHPEHURI WKHVDPH\HDUIRUWKHRSHQLQJDQGRSHUDWLRQRIWKH+LJK6SHHG5DLO6\VWHP7KH basic issues of the agreement were the spot acquisition before the legal transfer and DFTXLVLWLRQRIWKHRSHUDWLRQDODVVHWVWKHWUDQVIHURIWKHULJKWWRXVHWKH+LJK6SHHG5DLO 6\VWHPIDFLOLWLHVDQGDVVHWVDQGWKHVXSSRUWRIWKH$XWKRULW\E\GLVSDWFKLQJWHFKQLFDO SHUVRQQHOWR.25$,/LQSUHSDUDWLRQIRUWKHRSHQLQJRIWKHVHUYLFH

3UHSDUDWLRQIRUWKH2SHUDWLRQE\$UHD

a. Operating staff training and management

 Chapter 3  LQHQJLQHHUV Stage th 5 $XWKRULW\$FWD QGXFWHG2-7IRU 5~10 return trips /$PRQJWKHWRWDO PDLQWHQDQFHUHSDLU Route recognition HSDUWLFXODUO\ DWOHDVW¿YHPRQWKV N LQLQJSURJUDPVWRWKH HYHORSHG QGDQWVFRPSOHWLQJWKH KHDOWKFRQGLWLRQV7KH FHLYHGGLVSDWFKWUDLQLQJ GWUDLQLQJLQWKHVHFRQG DQQHGVWDIIPHPEHUV SURJUDPFRQVLVWVRIWKUHH LWWRR Stage th 4 2 weeks Test drive Stage rd 3 2 weeks Troubleshootiong HUVE\$XJXVW N HUVZKRFRXOGRSHUDWHWKHVWDWHRIWKHDUWKLJKVSHHG N HUV HVWLPDWLRQE\.25$,/DVRI'HFHPEHU  Stage nd N 2 5 weeks Simulation Trainnig center OJT

The Five Stage of the High Speed Train Engineer Training Program Engineer Training Stage of the High Speed Train
The Five Stage st Theory 1 3 weeks ers completed the theory and simulation training program by the end of December and simulation training program by the ers completed the theory k 6LQFHDIWHUWKHFRQFOXVLRQRIWKHFRUHWUDLQLQJFRQWUDFWLQ-XQ %DVHGRQ$UWLFOHRIWKH.RUHDQ+LJK6SHHG5DLO&RQVWUXFWLRQ 7RUHFUXLWWDOHQWHGZRU train engineers high speed b. Producing 7KHKLJKVSHHGWUDLQHQJLQHHUVZHUHVHOHFWHGDPRQJ.25$,/¶VWUD program was systematically designed to The high speed train engineer training Existing route recognition : 13 return trips by zone (137 hours)/per engineer (October-November 2003) High speed rail route recognition : 4 return trips by zone (50 hours)/per engineer (October 2003-March 2004) KLJKVSHHGUDLORSHUDWLRQRUJDQL]DWLRQZDVHVWDEOLVKHGLQ.25$, RIRSHUDWLRQDOZRU VLQFHWKH$XWKRULW\KDGRIIHUHGGRPHVWLFDQGRYHUVHDVWUD RSHUDWLRQFHQWUDOFRPPDQGDQGRWKHUUHODWHGVWDIIDQGWKHSO wor DQGKLJKVSHHGWUDLQHQJLQHHUVDQGKLJKVSHHGUDLO HQJLQHHUVUHFHLYHG2-7 FRPSOHWHGWKHWUDLQLQJ6LQFH$XJXVWWKH$XWKRULW\KDGFR .25$,/¶VWUDLQHQJLQHHUV&7&RSHUDWLRQDOVWDIIDQGWUDLQDWWH SUDFWLFDOWUDLQLQJIRUZRU rail system, and to produce elite operation specialists trained through systematic systematic trained through operation specialists and to produce elite rail system, HGXFDWLRQDOSURJUDPVDQRSHUDWLQJVWDIIWUDLQLQJSURJUDPZDVG FRQVLVWRIWKHRULHVSUDFWLFDOWUDLQLQJDQGWHVWGULYLQJDQG in France. ZLWKDWOHDVW¿YH\HDUV¶H[SHULHQFHEDVHGRQWKHDSWLWXGHVDQG VHOHFWHGHQJLQHHUVZHUHWUDLQHGE\WUDLQLQJVWDIIZKRKDGUH IRULWWRSURGXFHRQHWUDLQHQJLQHHU6SHFL¿FDOO\WKHWUDLQLQJ VWDJHVZLWKWKHRU\WUDLQLQJLQWKH¿UVWVWDJHVLPXODWLRQEDVH stage, and troubleshooting training in the third stage, all of which were given at the WUDLQLQJFHQWHU/DWHULQWKHIRXUWKDQG¿IWKVWDJHVRIWKHSURJUDPWKHWUDLQHHHQJLQHHUV were subjected to test driving and route recognition training, respectively.

During the theory training, the trainee engineers learned various operation regulations DQGWKHRULHVUHODWHGWRWKHKLJKVSHHGWUDLQRSHUDWLRQDQGGXULQJWKHVLPXODWLRQEDVHG WUDLQLQJWKH\XQGHUZHQWVLPXODWHGGULYLQJWHVWVRQDVLPXODWRUYHKLFOHWKDWRIIHUHG operation conditions almost the same as those of the actual vehicle. Later, through the WHVWGULYLQJRIWKHDFWXDOYHKLFOHWKHWUDLQHHHQJLQHHUVUHFHLYHGVWDWLFDQGG\QDPLF troubleshooting training and finally completed the high speed rail route recognition and simulation training.

c. Test drive, maintenance/repair, and transfer/acquisition To cope with any potential issue during the actual operation of the system, test driving and various facility inspections were performed, and various systems were HVWDEOLVKHGE\0DUFK

$VIRUWKHWHVWGULYHWKH$XWKRULW\FRQGXFWHGDQGFRPSOHWHGDSHUIRUPDQFHDQG GHVLJQYHUL¿FDWLRQWHVWRQWKHLQGLYLGXDOV\VWHPV KLJKVSHHGWUDLQVHOHFWULFUDLOZD\ OLQHVSRZHUVLJQDOHWF LQWKHWHVWVHFWLRQIURP'HFHPEHU,Q0DUFKWKH YHKLFOHDFTXLVLWLRQWHVWZDVFRQGXFWHGDQGLWZDVFRPSOHWHGE\WKHHQGRI-DQXDU\ 7KHWHVWGULYHRQWKHFRQQHFWLYLW\EHWZHHQWKHKLJKVSHHGWUDLQZKHHOVDQGWKH UDLOURDGLQWKHH[LVWLQJUDLOZD\VHFWLRQZDVVXFFHVVIXOO\FRPSOHWHG -DQXDU\-XQH  DQGLQ0DUFKZKHQWKHH[LVWLQJUDLOZD\UHQRYDWLRQSURMHFWKDGEHHQ FRPSOHWHGWKHIXOOVFDOHWHVWZDVFRQGXFWHG

)XUWKHULQ2FWREHUDQLQWHJUDWHGWHVWZDVFRQGXFWHGZKHUHWKHG\QDPLF connectivity between the individual systems and the high speed trains was inspected DQGUHYLVHG7KHWHVWZDVFRPSOHWHGDWWKHHQGRI-DQXDU\

6XSSRUWLQJ7DVNVIRUWKH3UHSDUDWLRQIRUWKH2I¿FLDO6WDUWRIWKH6HUYLFH

a. Establishment of a joint regular inspection system among the concerned organizations $VWKHILUVWSKDVH*\HRQJEX+LJK6SHHG5DLO&RQVWUXFWLRQ3URMHFWSURJUHVVHGDV SODQQHGWKHRIILFLDOVWDUWRIWKHVHUYLFHZDVVHWWR$SULO7KXVWKH0LQLVWU\

 Chapter 3  HWVDQGWKH VWDEOLVKHGD SDUDWLRQ6WDWXV WKH$XWKRULW\ WLRQRIWKHVDIH V\VWHPLQZKLFK GHGWKHQHFHVVDU\ LRQIRUWKH HQWRIWKHRSHQLQJ IRUWKRURXJKSRVW LQJSRWHQWLDOLVVXHV N )RUFHLQ0D\ F UDLOV\VWHPWKHWKUHH N VSRZHUFRPPXQLFDWLRQVLJQDO N ey issues and various alternatives of each various alternatives ey issues and k IRUFHWR.25$,/WRVXSSRUWWKHRI¿FLDOVWDUWRIWKHV\VWHP VRIWKHIDFLOLWLHVLQQHZUDLOZD\]RQHVWR.25$,/DQG N N V,Q-XQHRIWKHVDPH\HDU.25$,/RUJDQL]HGDQGXVHGWKH N l XSVDQGLQVSHFWLRQVE\LQVWDOOLQJDQGRSHUDWLQJWKH2SHQLQJ3UH N LQJ¿QDODGMXVWPHQWVDQGSURYLGLQJPHDVXUHV N 7KH$XWKRULW\PDGHDQHDUO\WUDQVIHURIWKHKLJKVSHHGUDLODVV For the final inspection before the official start of the service, the Ministry of of the service, the Ministry of start before the official For the final inspection b. Installation and operation of the Opening Preparation Status Room Preparation b. Installation and operation of the Opening ,Q$XJXVWWRSURPRWHWKHVXFFHVVIXOVWDUWRIWKHVHUYLFH 7KH+LJK6SHHG5DLO&RQVWUXFWLRQ3URMHFWFRQVLVWHGRIDFRPSOH[ (1) Goa a. Comprehensive facilities inspection by foreign specialists inspection by foreign facilities a. Comprehensive (VWDEOLVKPHQWDQG([HFXWLRQRI6DIHW\0HDVXUHVLQ3UHDUDW 2SHQLQJ 5RRP organizations held a joint inspection meeting to inspect the progress of the project and of the project to inspect the progress joint inspection meeting held a organizations the related and discussed test drive plans, organization. &RQVWUXFWLRQDQG7UDQVSRUWDWLRQRUJDQL]HGWKH2SHQLQJ7DV ,QWHJUDWHG+LJK6SHHG5DLO2SHUDWLRQ3UHSDUDWRU\&HQWHUIRUFKH RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQWKH$XWKRULW\DQG.25$,/H GLVSDWFKHGLWVVSHFLDOWDV rail system. in the successful opening of the high speed operation, which helped MRLQWUHJXODULQVSHFWLRQV\VWHP7DUJHWLQJWKHZLGHVFDOHSURPR RSHUDWLRQDQGKLJKTXDOLW\SDVVHQJHUVHUYLFHVRIWKHKLJKVSHHG PDLQWHQDQFHUHSDLUWDV PD PRQLWRUHGWKHVWDWXVRI.25$,/¶VRSHQLQJSUHSDUDWLRQVDQGSURYL that were discovered through the field measures to address the various problems FKHF HYHQWPDQDJHPHQWWKURXJKWKHV\VWHPDWLFLQWHJUDWLRQDQGDGMXVWP UHODWHGSUHSDUDWRU\WDV DQGWKH$XWKRULW\DOVRHVWDEOLVKHGWKH2SHQLQJ3UHSDUDWRU\7HDP YDULRXVWHFKQRORJLHVLQVXEEDVHFRXUVHVWUDF vehicles, etc., are integrated. During the construction, various entities in design, inspection, and construction promoted systematic quality control activities that met the ,62VWDQGDUGVHQVXULQJJRRGTXDOLW\WKURXJKSUHYHQWLYHWUDLQLQJDQGLQVSHFWLRQ activities. In addition, the continuous test driving in the test zone between Cheonan DQG'DHMHRQHQDEOHGVXI¿FLHQWLQVSHFWLRQVRIWKHSHUIRUPDQFHRIWKHKLJKVSHHGUDLO facilities and vehicles.

To increase the South Korean people’s trust, however, in the preparation for the RSHQLQJRIWKHILUVWSKDVHEXVLQHVVVHFWLRQWKH6RXWK.RUHDQJRYHUQPHQWFDPHXS ZLWKDFRPSUHKHQVLYHLQVSHFWLRQSODQWREHH[HFXWHGE\DIRUHLJQLQVSHFWLRQVSHFLDOLVW RUJDQL]DWLRQ$IWHUWKHFRQFOXVLRQRIDFRQWUDFWZLWK6<675$ )UDQFH IRUWKLV SXUSRVHDWKUHHPRQWKFRPSUHKHQVLYHLQVSHFWLRQZDVFRQGXFWHGIURP6HSWHPEHU WRWKHHQGRI'HFHPEHU

Consisting of nine members, including specialists in each related area and special UIC members, the inspection team conducted a comprehensive inspection of the SHUIRUPDQFHDQGVDIHW\RIWKHIDFLOLWLHV HDUWKZRUNWUDFNVHOHFWULFUDLOZD\OLQHV FRQWURODQGFRPPXQLFDWLRQ DQGWKHYHKLFOHVXVLQJWKHVDPHLQVSHFWLRQPHWKRGWKDW was implemented for France’s high speed rail system.

(2) Inspection results 7KHUHVXOWVRIWKHLQVSHFWLRQVKRZHGWKDWWKHTXDOLW\RIWKHVXEEDVHFRXUVH WUDFNDQGRWKHUIDFLOLWLHVZDVJRRG1RWRQO\ZHUHWKH\FRQVWUXFWHGEDVHGRQWKH H[DFWJXLGHOLQHVUHJDUGLQJWKHGHVLJQFRQVWUXFWLRQWHVWDQGWHVWGULYHVWDJHVWKHLU TXDOLW\ZDVFRPSDUDEOHWRWKDWRIDQ\(XURSHDQKLJKVSHHGUDLOV\VWHPWKDWZDV already in operation. Moreover, the system facilities, such as the power, signal, and FRPPXQLFDWLRQZHUHH[FHOOHQWLQWHUPVRIWKHSURGXFWLRQDQGSXUFKDVHSURFHVVHVDQG WKH¿HOGFRQVWUXFWLRQVWDWXVZDVFRQVLGHUHGDSSURSULDWH$IWHUWDNLQJD.7;WUDLQULGH the team concluded that the train was very stable dynamically, and that there is likely WREHQRSUREOHPWKDWFRXOGDIIHFWWKHV\VWHP¶VFRPPHUFLDORSHUDWLRQVWDUWLQJLQ$SULO 7KHWHDPKRZHYHUSUHVHQWHGDWRWDORIUHFRPPHQGDWLRQVLPSURYHPHQW PHDVXUHVWREHPDGHEHIRUHWKHRI¿FLDORSHQLQJRIWKHVHUYLFHDQG¿YHUHTXLUHGIRUWKH IXWXUHPDLQWHQDQFHDQGPDQDJHPHQW7KH$XWKRULW\FRPSOHWHGDOOWKHUHFRPPHQGHG PHDVXUHVE\0DUFKEHIRUHWKHRSHQLQJ

 Chapter 3   P  P  N N DQG N WWHQGLQJ$W OV $SULOLV YHGWKHH[FHOOHQW P LQ

 7XQQHO¿UH¿JKWLQJPHDVXUHV )RUWKH¿UH¿JKWLQJIDFLOLWLHVLQWKHWXQQHOVHPHUJHQF\OLJKWVH[LWOLJKWVHYDFXDWLRQ SDVVDJHV PZLGH DQGKDQGUDLOVZHUHLQVWDOOHGLQDOOWKHWXQQHOVWRIDFLOLWDWHWKH passengers’ evacuation. To enable communication via cell phones in emergency cases, DQWHQQDFDEOHVDQGZLUHOHVVSKRQHVZHUHLQVWDOOHG(YDFXDWLRQSDVVDJHVZHUHDOVR LQVWDOOHGLQWKHORQJWXQQHOV RYHUNP 

,QDGGLWLRQIRUWKHHDV\SDVVDJHRIHPHUJHQF\DQG¿UH¿JKWLQJYHKLFOHVLQFDVHRI fire, each tunnel was equipped with an access road and a vehicle return road, and IRU¿UHGLUHFWLRQLQ.7;YHKLFOHVYHKLFOHD[OHWHPSHUDWXUHGHWHFWRUVZHUHLQVWDOOHG outside the railway.

(4) Sub-base structures safety inspection To ensure the safety of the high speed rail, a comprehensive safety inspection of the FRQVWUXFWHGVWUXFWXUHVZDVFRQGXFWHGE\:-( 86$ EHWZHHQ-XQHDQG$SULO 7KHUHVXOWVVKRZHGWKDWVWUXFWXUHVUHTXLUHGSDUWLDOUHFRQVWUXFWLRQ VWUXFWXUHVUHTXLUHGPLQRUUHSDLUVIRUVPDOOFUDFNVHWFDURXQGVWUXFWXUHVUHTXLUHG VXUIDFH¿QLVKLQJLPSURYHPHQWDQGWKHRWKHUVWUXFWXUHVUHTXLUHGQRUHSDLU2YHUDOO :-(IRXQGQRVWUXFWXUDOVDIHW\LVVXH

In addition, the South Korean government commissioned Korea Infrastructure Safety Corporation to conduct regular safety inspections for the structures constructed EHWZHHQ$SULODQG$SULODQG.RUHD,QIUDVWUXFWXUH6DIHW\ Corporation and seven other organizations to conduct regular safety inspections for WKHVWUXFWXUHVFRQVWUXFWHGEHWZHHQ0D\DQG$SULO7KHVHUHJXODU

 Chapter 3 DV  ing RQV k , the electric s and surface k k KLVWHVWXVHGWKH QGLQFRPSOLDQFH HVZHUHFRQ¿UPHG RQHDQLQVSHFWLRQ QWGHIHFWLQVSHFWLRQ RQH 6HRXO'DHJX LQ G.&45ZKLFKZHUH FL¿FDWLRQV VDWLV¿HGWKHSUHFLVLRQ RIWKHUDLODQGWKHVHOI N PKDFFHOHUDWLRQWHVWIRU N HYHDOHGQRVWUXFWXUDOLVVXHV age, and that over all, all the structures structures all, all the that over age, and k s or lea k P]RQH7KHUHVXOWVVKRZHGWKDWWKH*\HRQJEX+LJK VSHFLDOLVWVIURP¿YHFRXQWULHVLQFOXGLQJ)UDQFHLQ N N HQEDVHGRQWKHUHSDLUVSHFL¿FDWLRQV N LQVSHFWLRQWHVWRQWKH¿UVWFRQVWUXFWHGWHVW]RQHZKLFKZDV N XSZHUHFRQGXFWHGHYHU\VL[PRQWKVWRYHULI\WKHVDIHW\FRQGLWL N LQJLQVSHFWLRQWHVWLQWDQGHPZLWKD N inspection car that accurately measured the precision of the trac inspection car that accurately measured KDGZRUOGFODVVTXDOLW\ LQJFRQVWUXFWLRQLQWKHILUVWSKDVH6HRXO'DHJX]RQHSURFHHGHG k N N XSDQGGHIHFWLQVSHFWLRQRIWKHVWUXFWXUHVLQWKHSULRULWL]HG] N 7KHVDIHW\DQGTXDOLW\RIWKH*\HRQJEX+LJK6SHHG5DLOVWUXFWXU (5) Tracking test and inspection to ensure high-quality service test and inspection to ensure Tracking (5) $VWKHWUDF 7KHVXEEDVHVWUXFWXUHVKDGEHHQEXLOWLQVHTXHQFHVLQFHD 7KHUHVXOWVRIWKHWUDF ,Q1RYHPEHUMXVWEHIRUHWKHVHUYLFHRSHQLQJRIWKHWHVW] VSHHGUDLOWUDF railway lines, and the train control facilities, as well as on the vehicles between as well as on the vehicles between railway lines, and the train control facilities, &KHRQDQDQG'DHMHRQWKH through various inspections, from the design stage, and in the construction stage, SUHSDUDWLRQIRUWKHRI¿FLDOVWDUWRIWKHVHUYLFH7KHUHVXOWVU ZHUHVDIHDQGDSSURSULDWHO\FRQVWUXFWHGEDVHGRQWKHGHVLJQVSH DQGWKRURXJKFKHF crac were made, such as the repair of small but minor recommendations inspections revealed no structural crac no structural revealed inspections ZLWK$UWLFOHRIWKH6SHFLDO$FWRQ)DFLOLWLHV6DIHW\0DQDJHPH RIWKHVWUXFWXUHV,QSDUWLFXODUWKH$XWKRULW\KHDGTXDUWHUVDQ conducted thorough agencies, and two other agencies, registered as safety inspection FKHF ¿QLVKLQJZKLFKZHUHXQGHUWD 0D\VKRZHGWKDWWKH*\HRQJEX+LJK6SHHG5DLOWUDF FRQGXFWHGE\LQWHUQDWLRQDOWUDF slopes in millimeters. Under warranty and by the supervision of the French technical slopes in millimeters. Under warranty and the said zone, the inspection was conducted team, which oversaw the supervision of HUURUIUHH speed rail system. level and performance required for a high of the trac and connectivity was performed on the performance, safety, SODQQHGDWUDF WKH.7;YHKLFOHZDVFRQGXFWHGLQWKHDOUHDG\FRPSOHWHG]RQHV7 XOWUDVRXQGGHWHFWLRQFDUWKDWH[DPLQHGLQGHWDLOWKHFRQGLWLRQ propelled trac H[SHULHQFHGIRUHLJQFRQVXOWLQJFRPSDQLHVVXFKDV'(&LQ*HUPDQ\DQG6<675$ DQG,1*(523LQ)UDQFHSDUWLFLSDWHGLQWKHSURFHVVDVLQVSHFWRUVDQGRYHUVDZWKH construction process to acquire the highest possible quality, which bolstered the construction technology in South Korea.

$OVRGXULQJWKHFRQVWUXFWLRQVDIHW\LQVSHFWLRQZDVFRQGXFWHGE\DQRI¿FLDODJHQF\ every year, and all small defects that were discovered were immediately addressed. Moreover, after the construction, thorough checkup and defect inspection were FRQGXFWHGHYHU\VL[PRQWKVWRUHFRQ¿UPWKHVDIHW\FRQGLWLRQRIWKHVWUXFWXUHV

Considering that the track construction was the first and largest mechanized construction that was ever attempted in South Korea, the construction went through technical reviews by foreign technical teams from the design to the construction and ¿QDOLQVSHFWLRQVWDJHVWRDFTXLUHWKHKLJKHVWSRVVLEOHTXDOLW\$VDUHVXOW*\HRQJEX +LJK6SHHG5DLODFTXLUHGDOHYHORIVDIHW\DQGTXDOLW\WKDWZRXOGDOORZLWWRFRPSHWH with the best railway systems in the world.

8. Financial Procurement

8.1 Financial-Procurement Plan

7KHEXGJHWILQDOL]HGRQ-XO\ZDV.5:WULOOLRQEDVHGRQ WKHILUVWSKDVHSURMHFWSODQ  7RSURFXUHWKHEXGJHWWKH6RXWK.RUHDQ JRYHUQPHQWDQGWKH$XWKRULW\HVWDEOLVKHGWKH¿QDQFLDOSURFXUHPHQWSULQFLSOHZKLOH FRQFOXGLQJWKHILUVWUHYLVHGSODQLQ$FFRUGLQJWRVXFKSULQFLSOHWKH6RXWK .RUHDQJRYHUQPHQWZRXOGSURYLGHRIWKHWRWDOEXGJHWZKLOHWKH$XWKRULW\ZRXOG

Gyeongbu High Speed Rail Budget Plans

(Unit: KRW 100 million as per the basic plan) Government Authority Category Total Foreign Bonds, Private Subtotal Investment Loan Subtotal loan etc. financing Total 202,939 93,998 79,025 14,973 108,941 30,750 75,568 2,623 1st Phase 127,377 57,320 44,582 12,738 70,057 30,750 36,684 2,623 2nd Phase 75,562 36,678 34,443 2,235 38,884 - 38,884 - Source: MLTM (2010)

 Chapter 3 HW 80 N OLFIXQGLQJ  ZDV.5: \HDUIURP ELOOLRQSHU\HDU WKHFRQVWUXFWLRQ ELOOLRQSHU\HDU PHQWUDWLRVZHUH et for the shortage. LVVXHGEHFDXVHWKH ULOOLRQVXFFHVVIXOO\ HU\HDU7KLVVKRZV KHERQGLQJPDU HPHQWFRQVLVWHGRI k IWHUWKHRQVHWRIWKH SULYDWHIXQGLQJDQG VXSSRUWZDVRIIHUHG KHLQYHVWPHQWE\WKH QWUHSUHVHQWHGRI FFRXQWLQJ$VDUHVXOW ZD\PDQDJHPHQWWKH XWKRULW\LQFUHDVHGDVWKH WKHODUJHVWVKDUHRIWKHILQDQFLQJSODQ  7KHERQG N 7KHEXGJHWILQDOL]HGLQWKHVHFRQGSKDVHSURMHFWSODQ  $PRQJWKHVHOISURFXUHG¿QDQFLQJE\WKH$XWKRULW\WKHRZQHURI 7KHJRYHUQPHQW¶V¿QDQFLDOVXSSRUWZDVDERXW.5:ELOOLRQSHU DVRI$SULO$ODUJHUDPRXQWRIERQGVWKDQDVSODQQHGZDV $XWKRULW\KDGWRVXSSOHPHQWWKHVKRUWDJHVLQIRUHLJQORDQVDQG ,VVXLQJ%RQGV 8.2 Financial-Procurement Performance 8.2 Financial-Procurement *RYHUQPHQW¶V)LQDQFLDO6XSSRUW DGMXVWHGWRDQGUHVSHFWLYHO\ SURYLGHWKHUHVW  7KH¿QDQFLDOVXSSRUWZDVGLYLGHGLQWRW $XWKRULW\DQGWKHILQDQFLDOORDQSURMHFWVZKLOHWKHVHOISURFXU LVVXLQJERQGVIRUHLJQORDQVDQGSULYDWH¿QDQFLQJ WULOOLRQDQGDVRIFRQVLGHULQJWKHSUDFWLFDOUDLO JRYHUQPHQW¶VILQDQFLDOVXSSRUWDQGWKH$XWKRULW\¶VVHOISURFXUH WKHWRWDOEXGJHWZKLOHWKH¿QDQFLDOORDQUHSUHVHQWHG VLQFHDIWHUWKH¿QDQFLDOLQYHVWPHQWZDVUHGXFHGWR.5: ZKHUHDVWKH¿QDQFLDOORDQVLQFUHDVHGWRDERXW.5:ELOOLRQS DERXWWKHVDPHDVWKDWEHIRUHWKHUHVSRQVLELOLW\RIWKH$ than investing on the project, partly due to government used the loan method rather WKH¿QDQFLDOGLI¿FXOWLHVWKDWWKHJRYHUQPHQWZDVH[SHULHQFLQJD IRUHLJQH[FKDQJHFULVLV$VDUHVXOWWKHJRYHUQPHQW¶VLQYHVWPH SURMHFWLVVXLQJERQGVWRR DVD¿QDQFLDOORDQWKURXJKWKH7UDQVSRUWDWLRQ3URMHFW6SHFLDO$ WKDWZKLOHWKHJRYHUQPHQW¶V¿QDQFLDOVXSSRUWZDVDURXQG.5: original plan, which was active financing issuance maintained the objective of the and the bonding mar through the publicfunding management fund WRDQGVLQFHDIWHUDERXWRIWKH\HDUO\¿QDQFLDO $VDUHVXOWWKHRULJLQDOERQGLQJLVVXDQFHSODQDW.5:W PDQDJHPHQWIXQGDQGWKHUHVWRIWKH.5:WULOOLRQWKURXJKW VXSSOLHG.5:WULOOLRQWKURXJKWKHDFTXLVLWLRQRIWKHSXE DOVREHFDXVHWKH$XWKRULW\KDGWRUHQHZWKHIXQGGXHWRWKHUHGHPSWLRQRIWKH¿YH\HDU matured bond.

)RUHLJQ/RDQV

5HSUHVHQWLQJDVPXFKDVRIWKHWRWDOEXGJHWWKHIRUHLJQORDQVLQWURGXFHG 86'ELOOLRQLQIURPLQWHUQDWLRQDOORDQFRQVRUWLXPVLQFOXGLQJ&DO\RQ IRUPHUO\,QGRVXH] %DQNLQ)UDQFHDVSXEOLFORDQVE\WKH6RXWK.RUHDQJRYHUQPHQW 2IVXFKDPRXQW86'ELOOLRQZDVXVHGE\WKH$XWKRULW\IRUSXUFKDVLQJ YHKLFOHVDQGFRUHHTXLSPHQWDVDW\SHRIVXEORDQ

,QWKHVWKHLQWHUQDWLRQDOLQWHUHVWUDWHGHFUHDVHGDQGWKHLQLWLDOORDQFRQGLWLRQV LQWHUHVWUDWH ZHUHZRUVHWKDQWKHFRQGLWLRQVIRUQHZERQGVRUIRUHLJQ FXUUHQF\ORDQV7KXVWKH$XWKRULW\VWRSSHGWKHZLWKGUDZDORIWKHH[SRUWVILQDQFH RQ-XO\DQGLQWURGXFHGIRUHLJQIXQGVWKURXJKIRUHLJQFXUUHQF\ORDQV 86' PLOOLRQ DQGIRUHLJQERQGV 86'PLOOLRQ DVSDUWRIWKH$XWKRULW\¶VHIIRUWWR reduce the repayment after the start of the railway service by procuring the funding with better conditions.

Conditions for Public-Loan Introduction

Category Exports Finance Tied Finance Contract USD 1,617 million USD 720 million amount Interest rate 6.255% based on CIRR Libor+0.57% 10-year installment, with 8 years 7-year installment, with 8 years Term deferment deferment Management charges: 0.4% Management charges: 0.7% Charges Contract charges: 0.28% yearly Contract charges: 0.3% yearly Capitalization Interest and insurance premium Interest Foreign-equipment purchase, exports Prepayment, purchase of South insurance premium, interest and Usage Korean equipment, interest, etc. market price increase during the during the construction construction Source: Ministry of Construction and Transportation, KICTEP (2007)

3ULYDWH)XQGLQJ

'XHWRWKHSRVWSRQHPHQWRIWKHVWDWLRQFRQVWUXFWLRQDIWHUWKHRSHQLQJRIWKH¿UVW

81 Chapter 3  (unit: KRW 1 billion) GHEWVUHODWHGWR LOZD\VHUYLFHWKH P\HRQJ6WDWLRQWKH GLQJSURMHFWVZKRVH ZKLFKUHFHLYHVWKH VSHHGUDLOLQFRPHLV D\VWKHPWKURXJKLWV UDLOZD\HWF DERXW UDLOZD\XVDJHLQFRPH VHSDUDWHG   UHEHLQJSURPRWHGDQG QWHUHVWLQWKHVDPH\HDU HUHWKHH[LVWLQJVWDWLRQV WKHYHKLFOHV DERXW.5: LEOHIRUWKHRWKHUVWDWLRQV $,/WKHUDLOZD\RSHUDWRU 1992-1999 2000 2001 2002 2003 2004 LQJLWLPSRVVLEOHIRULWHYHQWRUHSD\WKHLQWHUHVW Total N Budget Category

Funding Procurement Plans and Outcomes of Gyeongbu High Speed Railway (Phase 1) Speed Railway High Plans and Outcomes of Gyeongbu Procurement Funding 3-14>

1. Key Factors in the Poor Performance of the Project

1.1 Excessive Civil Complaints and Regional Self-centeredness

:KLOHWKHFRQVWUXFWLRQRIWKHWHVWVHFWLRQ &KHRQDQ'DHMHRQ EHJDQRQ-XQH VRPHSUHVLGHQWLDOFDQGLGDWHVPDGHDSXEOLFSOHGJHWRVWRSWKHSURMHFW FRPSOHWHO\DPLGWKHKHDWHGSUHVLGHQWLDOHOHFWLRQLQ'HFHPEHUDQGLQWKH middle of the turnover of power, some argued that the construction should be WUDQVIHUUHGWRWKHQH[WJRYHUQPHQW0RUHRYHUPDQ\SUREOHPVEHJDQWRHPHUJHGXH WRWKHLQVXI¿FLHQWSUHOLPLQDU\VXUYH\VODFNRIH[SHULHQFHLQKLJKVSHHGUDLOSURMHFWV DQGODFNRIWHFKQLFDONQRZKRZDQGPHDQV$VDUHVXOWWKH*\HRQJEX+LJK6SHHG 5DLO3URMHFWZDVRQWKHYHUJHRIEHLQJFRPSOHWHO\GLVPDQWOHG7KHPDVVPHGLD questioned South Korea’s poor infrastructure construction conditions in relation to WKHFROODSVHRI6HRQJVX%ULGJHLQDQGWKDWRI6DPSRRQJ'HSDUWPHQW6WRUHLQ DQGDOVRVWURQJO\TXHVWLRQHGWKHVDIHW\RI*\HRQJEX+LJK6SHHG5DLOZKRVH IXOOVFDOHFRQVWUXFWLRQKDGMXVWEHJXQ(YHU\GD\WKHPDVVPHGLDUHSRUWHGRQWKH feasibility and even possible dismantlement of the project.

Meanwhile, the construction progressed little, and the impact of the collapse of ODUJHVFDOHVWUXFWXUHVLQFUHDVHGWKHQDWLRQ¶VVHQVHRILQVHFXULW\DJDLQVWYDULRXV structures. The progress of the construction was even further delayed as the structural safety became more important than the progress of the construction and WKHFRQWLQXRXVUHYLVLRQVRIWKHFRQVWUXFWLRQSODQ,QSDUWLFXODUHYHQWKH-DQJMDH ri site, where the groundbreaking ceremony was to be held, was not purchased, and

 Chapter 4  YHUQPHQWVWDUWHG WLQWKHKLJKVSHHG SOLHURIWKHYHKLFOH RIDJRYHUQPHQW DVLQFKDUJHRIWKH DQGWKHVXEVHTXHQW GDOPRVWWKHZKROH QHGRUJDQL]DWLRQVLQ N MHFW¶VLQHI¿FLHQF\DV VHFRXUVHDQGVDIHW\ HUHGDWULDODQGHUURU FLYLOFRPSODLQWVZHUH LQJ'HSRWZLWKRXWDQH[FDYDWLRQVXUYH\RQWKH N of geological and topological surveys on the regions where the of geological and topological surveys on k WKHPDOPRVWD\HDUWRILQLVKHYHQMXVWWKHJURXQGZRU N Later, the land compensation issues were somewhat resolved, and the construction issues were somewhat resolved, the land compensation Later, In addition, the lac In fact, an official of a service company at the construction site admitted that construction site admitted that of a service company at the In fact, an official 7KHFXOWXUDODVVHWVLVVXHWKDWHPHUJHGZKHQWKH6RXWK.RUHDQJR RZQHGULYHU7KHGLI¿FXOWLHVLQUHODWLRQWRODQGSXUFKDVHVDQG HYLGHQFHGE\WKHORQJVLJKVRIWKHWKHQ$XWKRULW\¶VVWDIIZKRZ UHVXPHG$V$OVWKRPLQ)UDQFHKRZHYHUZDVVHOHFWHGDVWKHVXS construction. in the process of reviewing the technical system, the construction had to be stopped FRQQHFWLYLW\EHWZHHQWKHYHKLFOHFKDUDFWHULVWLFVDQGWKHVXEED DQGLQWKHSURFHVVRIUHYLVLQJWKHGHVLJQ7KLVFRXOGEHFRQVLG SURFHVVERUQHE\WKHLQH[SHULHQFHRIWKH6RXWK.RUHDQJRYHUQPHQ rail project. In other words, although the design and construction of the structures rail project. In other words, although the high speed rail vehicle system, the design should be preceded by the selection of the before a decision was made regarding the and some construction actually started YHKLFOHV\VWHPWREHDGRSWHGFRQVHTXHQWO\UHVXOWLQJLQWKHSUR the whole design needed to be revised. LWWRR compensation issues were not progressing as smoothly as planned. Furthermore, Furthermore, as planned. progressing as smoothly issues were not compensation to raise civil zones continued the construction of the areas neighboring the residents FRPSODLQWVDQGWKHZRUVHQLQJUHJLRQDOVHOIFHQWHUHGQHVVVWRSSH construction. WKHFHUHPRQ\ZDVKHOGDWDOHDVHGVLWH$VVXFKODQGSXUFKDVH WUDLQVZRXOGSDVVWKHLQVXI¿FLHQWGLVFXVVLRQVDPRQJWKHFRQFHU relation to cultural assets, the civil actions of the residents in relation to the railway relation to cultural assets, the civil actions compensations, and the continuous civil station sphere development and land governments and residents for the power complaints of and demands by the local to be moved as these might hinder transmission lines and transformer facilities led the construction price all effectively the local development and lower the land project towards a dead end. WKHFRQVWUXFWLRQRI2VRQJ7UDF cultural sites to be affected by the construction became a national debate, particularly LQUHODWLRQWRWKH*\HRQJMXURXWH7KDWLVWKH0LQLVWU\RI7UDQVSRUWDWLRQDQG Construction argued that the original route should be followed due to the tremendous H[SHQVHVWKDWZRXOGEHLQFXUUHGRQDFFRXQWRIWKHFRQVWUXFWLRQGHOD\FDXVHGE\ doing otherwise, and due to the additional funding required by the construction of a GLIIHUHQWURXWH)XUWKHUFRQWULEXWLQJWRWKHFRQVWUXFWLRQLQHI¿FLHQF\ZDVWKH0LQLVWU\ RI&XOWXUH 7RXULVP¶VDUJXPHQWWKDWWKHURXWHVKRXOGQHYHUSDVV*\HRQJMXVRWKDW the cultural assets in Shilla’s old capital would be preserved. The debate became HYHQPRUHLQWHQVHZKHQ)HGHULFR0D\RUWKHQ'LUHFWRU*HQHUDORI81(6&2LQKLV YLVLWWR6RXWK.RUHDVDLGWKDWLWZRXOGEHGLI¿FXOWIRU*\HRQJMXWREHGHVLJQDWHGDV a world heritage site if the high speed rail would pass through the city.

7KHGHEDWHRQWKH*\HRQJMXURXWHZKRVHFRQVWUXFWLRQKDGVWDUWHGDVUHJDUGV culturalassets protection later developed into a very complicated situation as those who were involved in the debate argued even more vigorously in defense of their respective stance. Further, the voice of each local government added to the regional VHOIFHQWHUHGQHVVDQGWKHGHEDWHRQWKH*\HRQJMXURXWHPDGHPDQ\SHRSOHZRUU\ DERXWWKHSRVVLELOLW\WKDWWKHRWKHUUHJLRQVWKDWKDGEHHQFRQ¿UPHGWREHPDGHSDUW of the railway system as well, as routes, would also enter into the debate.

%HVLGHVDFFRUGLQJWRWKHPHGLDLQWKHUHZHUHPRUHWKDQWHQPDMRUFLYLO FRPSODLQWVWKDWFRXOGDIIHFWWKHSURFHVVDQGWHUPRIWKHFRQVWUXFWLRQWKRVHUHJDUGLQJ WKHORFDWLRQRI6HRXO&HQWUDO6WDWLRQWKHLQVWDOODWLRQRI*ZDQJP\HRQJ6WDWLRQWKH HDUO\LQVWDOODWLRQRI2VRQJ6WDWLRQWKHXQGHUJURXQGZRUNIRUWKH.LPFKHRQSDVVLQJ URXWHWKHXQGHUJURXQGZRUNIRUWKH

Such civil complaints and controversies took a turn when the South Korean government proposed solutions for them and announced that it would prove the safety of the construction through a safety inspection by an independent agency, and if problems were discovered, the concerned structures would be rebuilt.

6XEVHTXHQWO\:-(D86VDIHW\LQVSHFWLRQDJHQF\FRQGXFWHGDVDIHW\LQVSHFWLRQ RIWKHVWUXFWXUHVEXLOWEHWZHHQ-XQHDQG$SULO:KLOHWKLVLQVSHFWLRQ

 Chapter 4  PVRXWK N GDPDJLQJWKH KHSURMHFWWR WKDWLWVHOHFWHG N HORSWKHUDLOZD\ QGWKH$XWKRULW\ GEXLOG*\HRQJMX WRZQRI*\HRQJMX P DVDUHYLVLRQRI &RQVHTXHQWO\WKH ULV JMX QH[SUHVVHGGXHWR ,MRUL  N FHVVLQWKHFRQWLQXDQFH eshift construction custom, the custom, the eshift construction k P IURP N PVRXWKIURPWKHGRZQWRZQREMHFWLRQVWRWKLV N m south from the downtown, but failed to reach an agreement on such k The Ministry of Culture and Tourism, however, and the religious and academic religious and academic and the however, Tourism, The Ministry of Culture and $WWKDWWLPHWKH0LQLVWU\RI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQD 6LQFHDIWHUWKH6RXWK.RUHDQJRYHUQPHQWDQQRXQFHGLQ-XQH Thus, the Ministry of Construction and Transportation proposed alternatives that proposed alternatives Transportation Thus, the Ministry of Construction and 1.2 Route Change &KDQJHLQWKH*\HRQJMXURXWH of the project when the inspection was announced to the public led the South Korean the public led the South was announced to when the inspection of the project SHRSOHWRFRQVLGHUWKH$XWKRULW\DKRWEHGRISRRUFRQVWUXFWLRQ GHPRQVWUDWHGWKHGHWHUPLQDWLRQRIWKH$XWKRULW\WKHRZQHURIW eliminate not only poor construction but also the ma only poor construction eliminate not $XWKRULW\¶VSXEOLFSOHGJHQRWWRUHSHDWWKHWULDODQGHUURUSUR $XWKRULW\FDPHWRIDFHHYHQPRUHGLI¿FXOWLHV professionals, opposed the aforementioned plans due to the insufficient measures measures plans due to the insufficient professionals, opposed the aforementioned in favor of the original route cultural assets, arguing therein to protect the region’s and investment cost would damage the landscape as the construction inefficiency DQGFXOWXUDODWPRVSKHUHRIWKH\HDUROGFDSLWDODQGZRXOG WKHURXWHWKDWSDVVHVWKURXJKWKHGRZQWRZQRI*\HRQJMXDQGZRXO 6WDWLRQRQWKHQRUWKHUQILHOG GHFLVLRQE\WKHFXOWXUDOUHOLJLRXVDQGDFDGHPLF¿HOGVKDGEHH damage not only the cultural relics and the belief that it would directly and indirectly VLWHVLQ*\HRQJMXEXWDOVRWKHODQGVFDSHRI0W1DPVDQLQ*\HRQ SURSRVHGDSODQWRFKDQJHWKHVWDWLRQIURPWKHQRUWKHUQ¿HOGWR IURPWKHGRZQWRZQ LQ2FWREHUDQGDQRWKHUSODQQRWWRGHY to protect the cultural assets and year, station after the joint survey in the same ODQGVFDSHLQ*\HRQJMX WKH+\HRQJVDQ5LYHUURXWHDQGPRYLQJWKHVWDWLRQIURPWKHGRZQ to Ijori, 10 matters. LQFOXGHGH[WHQGLQJWKHXQGHUJURXQGVHFWLRQWR cultural assets therein. This made the gap between the two parties even wider. This made the cultural assets therein. 7RZDUGVWKHHQGRI$SULOWKH2I¿FHRIWKH3ULPH0LQLVWHUOHGDMRLQW¿HOG survey with the Ministry of Construction and Transportation and Ministry of Culture and Tourism, participated in by the staff of both departments and by independent FXOWXUDODVVHWVXUEDQSODQQLQJDQGWUDQVSRUWDWLRQUHYLHZHUVZKRKDGEHHQ recommended by the opposing party.

7KHEDVLFVWDQFHRIWKHJRYHUQPHQWRQWKH*\HRQJMXURXWHZDVWRPLQLPL]HWKH damage that it would cause to the atmosphere and to the cultural assets that might be buried therein, and to proceed with the project without any more hitches, and at the VDPHWLPHWRFRQVLGHUWKHWUDQVSRUWDWLRQFRQYHQLHQFHRIWKHUHVLGHQWVLQ*\HRQJMX 8OVDQDQG3RKDQJLQVHOHFWLQJWKHORFDWLRQRIWKHURXWHDQGWKHVWDWLRQ

Based on the government’s principle, the joint survey team completed a joint UHSRUWEDVHGRQZKLFKWKH3ULPH0LQLVWHUOHGDVHULHVRIPHHWLQJVZLWKWKH0LQLVWHU RI(FRQRP\&XOWXUHDQG7RXULVPDQGZLWKWKH0LQLVWHURI&RQVWUXFWLRQDQG Transportation, leading to an agreement.

Based on what was agreed upon, the government determined and announced a new *\HRQJMXURXWHLQ-DQXDU\7KHFKDQJHGURXWHZDVGHWHUPLQHGEDVHGRQWKH FRQVLGHUDWLRQWKDWLWZRXOGPLQLPL]HWKHGDPDJHWRWKHFXOWXUDODVVHWVLQ*\HRQJMX and would have technical and economic feasibility. Further, it was decided that the ORFDWLRQRIWKHVWDWLRQZRXOGEHSODFHGZLWKLQWKHDGPLQLVWUDWLYHVHFWLRQRI*\HRQJMX City.

5RXWH&KDQJHRI6DQJQL7XQQHO6HFWLRQ

7KHFRQVWUXFWLRQRI6DQJQL7XQQHO6HFWLRQVWDUWHGRQ0D\EXWDVXUYH\ RQWKHQDWLRQZLGHXQXVHGRUDEDQGRQHGPLQHVWKURXJKWKH1DWLRQDO$VVHPEO\ LQVSHFWLRQRIWKHJRYHUQPHQWRI¿FHVUHYHDOHGDZHEOLNHHPSW\VSDFHLQWKHXSSHU ORZHUSDUWVDQGDWWKHVLGHRIWKHWXQQHOZKLFKLVPORQJDQGKDVDP capacity. Consequently, the issue of the safety of the high speed railwas raised. This space was an abandoned mine shaft from the mining work in Sambo Mine, which SURGXFHG]LQFIRU\HDUVVLQFH$WWKDWWLPHPRIWKHNP6DQJQL Tunnel had already been dug.

 Chapter 4 88 LODSODQWR W\¶VERDUGRI XOGRIIHUHDV\ UHD5HVRXUFHV QG'DHJX JURXQGSODQZDV IURP.5: IURP.5: 7UDQVSRUW,QVWLWXWH DPUHFRPPHQGHG HQWDOPDLQWHQDQFH HGXHWRWKHH[LVWLQJ &DSLWDO&RQVWUXFWLRQ RWKHXUEDQODQGVFDSH \LQFDVHRIDFFLGHQWV HDQGKLVWHDPLQ*HUPDQ\ N PK GXHWRWKHVHYHUHVORSHV VLWH5  N HQRLVHRUYLEUDWLRQDQGH[FHVVLYHREVWDFOHVLQUHVLGHQWLDO N 7KHGHWRXUHGURXWHZDVGHWHUPLQHGRQ0DUFK N $IWHUDVHULHVRIDVVHVVPHQWVRQ2FWREHUWKH$XWKRUL 7RUHGXFHWKHLQYHVWPHQWFRVWKRZHYHULQ-XQHWKHXQGHU ,Q-XQHWRPLQLPL]HWKHUXQQLQJWLPHRIWKHKLJKVSHHGUD To establish a fundamental measure for ensuring Sangni Tunnel’s safety, the South the South safety, Tunnel’s Sangni for ensuring measure fundamental a establish To %HVLGHVWKHHFRQRPLFUHDVRQVWKHRQWKHJURXQGFRQVWUXFWLRQZR &KDQJHLQWKH0HWKRGRI3DVVLQJWKH'RZQWRZQRI'DHMHRQD WRFRQGXFWWKHZRU WRFRQGXFWDSUHOLPLQDU\VDIHW\DVVHVVPHQW$VDUHVXOWWKHWH of the floor visual observation sections through the plan of some a reinforcement SODQRIWKHDEDQGRQHGPLQHDQGRUH/DWHULQ1RYHPEHU.R services. a ground safety assessment and international Corporation commissioned survey for the selection the route, and after the feasibility directors decided to change RIDQHZ6DQJQL7XQQHOURXWHWKH$XWKRULW\FRPPLVVLRQHG.RUHD areas. construct an underground route for Daejeon and Daegu downtown sections proposed route construct an underground The main objective of such plan was to based on the results of the technical survey. RYHUFRPHWKHUHGXFWLRQLQVSHHG  PVLWHV5 P WKHGLI¿FXOW\LQFUHDWLQJDQLQWHUFKDQJ URDGV VLWHVLQ'DHMHRQDQGVLWHVLQ'DHJX WKHGDPDJHW HQYLURQPHQWDOLVVXHVOL FKDQJHGLQWRWKHRQWKHJURXQGSODQDIWHUWKH6RFLDO2YHUKHDG The total amount saved by the revision so. Implementation Committee agreed to do ZDV.5:ELOOLRQZKLFKLVFRQVLVWHGRI.5:ELOOLRQ ELOOLRQWR.5:ELOOLRQ LQ'DHMHRQDQG.5:ELOOLRQ .RUHDQJRYHUQPHQWFRPPLVVLRQHG3URIHVVRU.LUVFK ELOOLRQWR.5:ELOOLRQ LQ'DHJX benefits such as construction, a reduced construction term, easy connectivity and benefits such as construction, a reduced construction term, easy connectivity and WUDQVIHUWRWKHH[LVWLQJUDLOZD\GLVDVWHUSUHYHQWLRQHQYLURQP ORZHUIDFLOLWLHVDQGPDLQWHQDQFHUHSDLUFRVWVDQGHDV\UHFRYHU The continuous civil complaints from the residents and local governments UHJDUGLQJWKHHQYLURQPHQWDOGDPDJHV HJQRLVHYLEUDWLRQ KRZHYHUDVZHOO as the worsening division of the downtown, resulted in the decision to revert the FRQVWUXFWLRQEDFNWRXQGHUJURXQGZRUNLQ$SULO/DWHULQGXHWRWKH question raised by the local government with regard to the underground passage, WKHFRQVWUXFWLRQZDV¿QDOL]HGDVRQWKHJURXQGZRUNLQ$XJXVW$VVXFKWKH continuous revisions of the Daejeon and Daegu downtown section construction FRXOGQRWEHFRPSOHWHGLQWKHWDUJHW¿UVWSKDVHRSHQLQJRI*\HRQJEX+LJK 6SHHG5DLO7KHODWWHULVWKXVH[SHFWHGWREHFRPSOHWHGLQ

&KDQJHLQWKH%ULGJH7\SH

The detailed design standard of the high speed rail was created by South Korean VSHFLDOLVWVIURP-XO\WR)HEUXDU\E\UHIHUULQJWRWKHSXEOLFGHVLJQGDWDRI WKHKLJKVSHHGUDLOVLQ)UDQFH*HUPDQ\DQG-DSDQ/DWHULQ-XQHWKHGHVLJQ ZDVFRPPLVVLRQHGWR6RXWK.RUHDQVSHFLDOLVWFRPSDQLHVZKLFKGHVLJQHGWKH XSSHUVWUXFWXUHRIWKHEULGJHVEDVHGRQ3&ER[

)RXUWHVW]RQHVVWDUWHGWREHFRQVWUXFWHGLQ-XQHEXWGXHWRWKH¿UVWSURMHFW UHYLVLRQLQ-XQHZKLFKZDVUHYLHZHGDQGDJUHHGWRE\WKH6RFLDO2YHUKHDG Capital Construction Implementation Committee based on the socioeconomic VLWXDWLRQLQWKHFRXQWU\WKHQWKHEULGJHVWUXFWXUHZDVFKDQJHGIURP3&ER[WR3& EHDPDVSDUWRIWKHSODQWRHIIHFWPD[LPXPFRVWVDYLQJV ¿UVWIRUPDWFKDQJH /DWHU LQ$XJXVWDIWHUWKHVHOHFWLRQRI$OVWKRPLQ)UDQFHDVWKHSULRULWL]HGQHJRWLDWLRQ partner, the dynamic behavior of the bridges was reviewed for the inspection of the EULGJHV¶VDIHW\DWKLJKVSHHGRSHUDWLRQ$OWKRXJKWKHUHVXOWVVKRZHGWKDWWKHUHZHUH no issues in deflection or vibration, it was recommended that the stiffness of the VWUXFWXUHVLQWKH5DKPHQDQG3&EHDPEULGJHVEHUHLQIRUFHGWRUHGXFHWKHYHKLFOH¶V YLEUDWLRQDQGWRSURPRWHWKHSDVVHQJHUV¶FRPIRUW$FFRUGLQJO\FRQVLGHULQJWKHORQJ WHUPVWDELOLW\LPSURYHPHQWDQGPDLQWHQDQFHUHSDLUDVSHFWVRIWKHVWUXFWXUHVWKH EULGJHW\SHZDVUHYHUWHGEDFNWRWKHFRQWLQXRXV3&ER[VWUXFWXUHIURP3&EHDPLQ $XJXVW VHFRQGIRUPDWFKDQJH 

$VVXFKWKH*\HRQJEX+LJK6SHHG5DLO3URMHFWZHQWWKURXJKYDULRXVWHFKQLFDO FRQÀLFWVEHFDXVHRIWKHPLQLPDOH[SHULHQFHRIWKH6RXWK.RUHDQWHFKQLFDOWHDPLQ

89 Chapter 4 90 FDVHWRWKH *\HRQJEX URVSHFWLQJ XQH RULW\IRUWKH ULRG $XJXVW SDFWVXUYH\LQ WRWKH6XSUHPH HQYLURQPHQWDO XVDQ+LJK&RXUW QWHUHVWUDLVHGE\ JRIVSHFLDOLVWV XQQHOFRQVWUXFWLRQ LYHV$VVXFKWKH [FRQVLGHULQJORQJ ´ GWKH¿YH\HDUORQJ  JK&RXUW¶VGHFLVLRQ -L\XOZKRUHTXHVWHGWKDW N e, discrediting the review by the e, discrediting the review by the k -L\XOWRHQGWKHGLVWUXVWRIWKHWXQQHO N -L\XORQWKHFRQVWUXFWLRQRQWKHIROORZLQJ N PHFKDQLFVDQGHFRV\VWHP DQGWKHUHVXOWVZHUH N -L\XOSURWHVWHGDJDLQVWWKHFRXUW¶VGHFLVLRQDQGDSSHDOHGWKH N 0RQ (QYLURQPHQWDOFLYLOFRPSODLQWVFRQFHUQLQJ0W&KHRQVHRQJZKLFK 7KH$XWKRULW\DJUHHGWRWKHFRQGXFWRIDMRLQWHQYLURQPHQWDOLP 7KHMRLQWVXUYH\ZDVFRQGXFWHGE\DMRLQWVXUYH\WHDPFRQVLVWLQ $VIRUWKHDSSHDOIRUWKHLVVXDQFHRIDQLQMXQFWLRQWRWKH$XWK (QYLURQPHQWDO&LYLO&RPSODLQWV&RQFHUQLQJ0W&KHRQVHRQJ designing high speed rail systems and because the design was started before selecting before selecting was started the design because systems and speed rail high designing WKHYHKLFOHIRUPDW7KHEULGJHW\SHZDV¿QDOO\FKDQJHGWR3&ER term stability and convenience of maintenance and repair. of maintenance and and convenience term stability WKHFRQVWUXFWLRQEHFRPSOHWHO\VWRSSHG,Q1RYHPEHUWKH% GLVPLVVHGWKHLQMXQFWLRQ¿OHGE\0RQ JURXQG³7KHSUREDELOLW\RIHQYLURQPHQWDOHQFURDFKPHQWRIWKHW and the tremendous and swamp areas is considerably low, on the high mountains LQWHUHVWRIWKHSXEOLFFDQQRWEHGLVUHJDUGHGRQDFFRXQWRIWKH HQFURDFKPHQWGLVDGYDQWDJHWKDWKDVFRQVLGHUDEO\ORZSUREDELOLW\ Supreme Court. He also went on a hunger stri Supreme Court. He also went on a hunger +LJKVSHHGUDLOSDVVHVWKURXJKZHUHUDLVHGLQE\0RQ VSHFLDOLVWVDSSRLQWHGE\WKH0LQLVWU\RI(QYLURQPHQWDQGWKH+L )HEUXDU\XSRQWKHUHTXHVWRI0RQ FRQVWUXFWLRQLQUHODWLRQWRHQYLURQPHQWDOLVVXHVDQGWRVDYHO FRQVWUXFWLRQZDVVWRSSHGIRUWKUHHPRQWKVGXULQJWKHVXUYH\SH 1RYHPEHU  IURPHDFKSDUW\LQILYHDUHDV XQGHUJURXQGZDWHUJHRSK\VLFDOS JHRORJLFDOVWUXFWXUHURF &RXUWZKHUHWKHDSSHDOZDVSHQGLQJOLWLJDWLRQRQ0DUFK VWRSSDJHRIWKHFRQVWUXFWLRQWKH6XSUHPH&RXUWGHWHUPLQHGRQ- WKDW³WKHUHLVQREDVLVIRUWKHHQFURDFKPHQWRIHQYLURQPHQWDOL HQYLURQPHQWDORUJDQL]DWLRQVDQGRWKHUV´ZKLFKHIIHFWLYHO\HQGH DQQRXQFHGWRWKHPHGLDRQ)HEUXDU\DQGZHUHVXEPLWWHG FRQÀLFWEHWZHHQWKHJRYHUQPHQWDQGHQYLURQPHQWDORUJDQL]DWLRQVFRQFHUQLQJ0W Cheonseong. The litigation, however, resulted in an increase in the construction cost and in a delay in the construction term.

3URJUHVV!  *\HRQJEX+LJK6SHHG5DLOURXWHSODQUHYLHZZDVUHTXHVWHG  7KH3UHVLGHQWRUGHUHGWKHUHYLHZRIWKHURXWH  0RQN-L\XOUHTXHVWHGIRUDQLQMXQFWLRQWRVWRSWKHFRQVWUXFWLRQ WKH VRFDOOHG³.RUHDQ6DODPDQGHU/DZVXLW´   6XEEDVHFRXUVHFRQVWUXFWLRQEHJDQRQ0W&KHRQVHRQJ

91 Chapter 4  ZDVDERXW OLQHVHFWLRQ PRQJWKHP XFWLRQ]RQH  KH6RXWK.RUHDQ JVX%ULGJHDQGRI UXFWLRQLQGXVWU\,Q WDVDIHW\LQVSHFWLRQ ¿HOGV:-(ZKLFK FRQVWUXFWLRQSURMHFW HV DQGLQUHSDLUDQG %HFKWHOLQWKH86 IWKH*\HRQJEX+LJK DUWRIWKHFRQVWUXFWLRQ  FRQWLQXRXVUHYLVLRQVRI PVLWHV N P WXQQHOV P EULGJHV N N worldwide, was chosen as the best company to conduct the to conduct the worldwide, was chosen as the best company k ż 7RWDOOHQJWK ż %ULGJHV ż 7XQQHOV EXLOWEHWZHHQ-XQHDQG$SULODQGWKHZKROHWHVW between Cheonan and Daejeon 2QHFRQVWUXFWLRQVHFWLRQEHWZHHQ6HRXODQG&KHRQDQ FRQVWU a. Target structures for the safety inspection structures a. Target Having realized that the South Korean people’s trust in the construction project trust in the construction project people’s Having realized that the South Korean $VHULHVRIODUJHVFDOHGLVDVWHUVVXFKDVWKHFROODSVHRI6HRQ 2.1 Conducting Safety Inspections and Establishing Measures to Measures and Establishing Safety Inspections 2.1 Conducting Construction Poor Prevent :-(¶V6DIHW\,QVSHFWLRQ 2. Overcoming the Difficulties the 2. Overcoming SHRSOHWRGHYHORSDQH[WUHPHGLVWUXVWRIWKH6RXWK.RUHDQFRQVW 6DPSRRQJ'HSDUWPHQW6WRUHLQDQGUHVSHFWLYHO\OHGW VXFKDVLWXDWLRQDTXHVWLRQZDVUDLVHGFRQFHUQLQJWKHVDIHW\R 6SHHG5DLO3URMHFWDODUJHQDWLRQDOSURMHFW)XUWKHUPRUHWKH RIWKHVWUXFWXUHVWKDWKDGEHHQEXLOWEHWZHHQ-XQH WKHVW DQG$SULO$WWKDWSRLQWWKHRYHUDOOSURJUHVVRIWKH ZDVDQGWKDWRIWKHWHVW]RQHEHWZHHQ&KHRQDQDQG'DHMHRQ KDGH[WHQVLYHH[SHULHQFHLQVDIHW\LQVSHFWLRQV DERXWFDV reinforcement wor inspection. XUJHQWO\QHHGHGWREHUHJDLQHGWKH$XWKRULW\GHFLGHGWRFRQGXF the bridge designs, and the consequent reconstruction and structural reinforcement, the consequent reconstruction and structural the bridge designs, and of their safety by of the structures and the verification required the inspection specialist organizations. $VVXFKWKH$XWKRULW\VHQWDVDIHW\LQVSHFWLRQUHTXHVWWR 6<675$LQ)UDQFH'(&LQ*HUPDQ\DQG:-(DQG).&LQWKH86$ after a thorough review of the proposals four companies submitted a proposal, and E\WKHVHOHFWLRQFRPPLWWHHFRQVLVWLQJRIVSHFLDOLVWVLQYDULRXV ż (DUWKZRUNVDQGFXOYHUWVNP HDUWKZRUNVFXOYHUWV &RQWUDFWRU:-( :LVV-DQQH\(OVWQHU$VVRFLDWHV,QF86$ 7HUPVDQGFRVW ż )LUVWLQVSHFWLRQ VL[PRQWKV 86' ż 6HFRQGLQVSHFWLRQ VL[PRQWKV 86'

b. Results 7KHUHVXOWVVKRZHGVLWHVIRUILHOGUHYLVLRQVVLWHVIRUUHSDLUVLWHVIRU SDUWLDOUHFRQVWUXFWLRQDQGVLWHVIRUQRUHSDLU7KH¿HOGUHYLVLRQ VLWHV DQG UHSDLU VLWHV SRVHGQRVWUXFWXUDOVDIHW\LVVXHVDVWKH\LQYROYHGPLQRUGHIHFWVWKDW might have been caused by the carelessness in the construction, such as in the surface finishing, small cracks due to drying shrinkage, pockmarks, and inappropriateness RIFRQVWUXFWLRQMRLQWVXVHG$VDPHDVXUHIRUWKHSDUWLDOUHFRQVWUXFWLRQ VLWHV WKH EULGJHEHDULQJLQUDLOIRUPDWLQVLWHVZDVH[FKDQJHGLQWKHIXWXUHPDLQWHQDQFH and repair, and for the bridge slab in the rest of the four sites, patching repair was requested.

(VWDEOLVKLQJ3RRU&RQVWUXFWLRQ3UHYHQWLYH0HDVXUHV

7KHUHDVRQVIRUSRRUFRQVWUXFWLRQDQGGHOD\LQWKHVFKHGXOHRI*\HRQJEX+LJK 6SHHG5DLOZD\3URMHFWZHUHILUVWWKHODFNRISUHSDUDWLRQLQGHVLJQGRFXPHQWVDQG VSHFL¿FDWLRQVDQGVHFRQGWKHODFNRIXQGHUVWDQGLQJLQVDIHW\DQGDFFXUDF\GXHWRWKH QRQH[LVWHQFHH[SHULHQFHLQKLJKVSHHGUDLOZD\FRQVWUXFWLRQ$OVRVHYHUDOLQFLGHQWV of the stoppage of the construction forced the project to focus mostly on meeting the construction deadlines, and consequently, quality of the construction was neglected. 7KLVUHVXOWHGLQDVHULHVRIORQJODVWLQJVLGHHIIHFWVVXFKDVWKHPDVVPHGLD¶VKDVWLO\ written articles that scandalized problems, and apathetic social atmosphere, the nation’s indifference of and misunderstanding in safety.

%XWWKHSURMHFWRYHUFDPHVXFKGLI¿FXOWLHVWKURXJKWKHVDIHW\LQVSHFWLRQFRQGXFWHG E\:-(DQGFRXOGOHDUQIURPWKHH[SHULHQFHWKDWWKHFRQVWUXFWLRQRIDKLJKVSHHG railway would require comprehensive quality and construction management. The UHFRPPHQGDWLRQVE\:-(DVDUHVXOWRIWKHVDIHW\LQVSHFWLRQLWFRQGXFWHGVKRZHGWKDW most of the issues resulted from the poor management of the construction. The various GHIHFWVDQGSUREOHPVWKDWKDGEHHQLGHQWL¿HGZHUHWKRURXJKO\UHYLHZHGDQGDGGUHVVHG

 Chapter 4 QG  ed into in k YHH[SHULHQFH QRZKRZDQG FRQGXFWDIXOO RUHV\VWHPWKH N QDOUHOLDELOLW\DQG JWKHUHYLHZZKR WKH6RXWK.RUHDQ QWKH¿UVWSKDVHWKH GJHVWDQGDUGL]DWLRQ WHUVDIHW\EDVHGRQWKH ]RQHGHVLJQDQGLQWKH GXHWRWKH6RXWK.RUHDQ KHLPSOHPHQWDWLRQRIWKH WKHFDUHOHVVPDQDJHPHQW DQGVWUXFWXUHVRI*\HRQJEX N VZHUHVWUHQJWKHQHGWRHQVXUHWKHVDIHW\RIWKHFRQVWUXFWLRQD N cooperation and technology transfer. k the tas k VWRWKHGHVLJQUHYLHZWKHFRQVWUXFWLRQSURMHFWDFTXLUHGH[WHU N $IWHU:-(¶VVDIHW\LQVSHFWLRQWKHVDIHW\LVVXHVRIVWUXFWXUHV To regain the people’s trust in the safety of the country’s structures, and to obtain to obtain structures, and trust in the safety of the country’s the people’s regain To 7KDQ WKH6DIHW\&RQWURO3URPRWLRQ3ODQZDVHVWDEOLVKHGWRHQVXUHEHW supervision of the construction. and the reinforced technical support for provision of 'HVLJQ9HUL¿FDWLRQDQG6XSSOHPHQWDWLRQ so that no identical issues would appear in the future. Moreover, the quality control and control the quality Moreover, in the future. appear issues would no identical so that ¿HOGLQVSHFWLRQWDV FRQVWUXFWLRQLQGXVWU\¶VFXVWRPRI³EXLOG¿UVWUHSDLUODWHU´RU $XWKRULW\FRPPLVVLRQHG6<675$DQDI¿OLDWHFRPSDQ\RI61&)WR VFDOHGHVLJQLQVSHFWLRQRIWKHVXEEDVHFRXUVHWUDF +LJK6SHHG5DLO7KHGHVLJQUHYLHZE\6<675$ZKLFKKDGH[WHQVL projects, was conducted into two phases in high speed rail design and construction ¿UVWSKDVHVHFRQGSKDVH , WHFKQLFDOFRQQHFWLYLW\EHWZHHQWKH7*9YHKLFOHV\VWHPDQGWKHF of construction projects emerged. This became an opportunity to change such practices an opportunity to change such practices This became emerged. of construction projects in advanced countries. to raise its competency level to that and to reform the industry FRQWUDFWRUUHYLHZHGWKHVXEEDVHGHVLJQVWDQGDUGDQGWHVWOLQH of the areas that were not loo second phase, it conducted a detailed review WKH¿UVWSKDVHDQGFUHDWHGDGHVLJQGUDZLQJIRUWKH3&ER[EUL 7KH$XWKRULW\KDGD6<675$WHFKQLFLDQVWD\LQ6RXWK.RUHDGXULQ undertoo as South Korean technologies, which accumulated related advanced technologies became the driving force for performing high speed rail projects not only in South Korea but also in other countries. HQVXUHGWKHVWUXFWXUDOVDIHW\RIWKHVXEEDVHVWUXFWXUHVDQGW format could improve the constructability detailed top structure design in the standard DQGFRXOGUHGXFHWKHFRQVWUXFWLRQFRVWE\DERXW)XUWKHUPRUH WHFKQLFDOWHDPDFTXLUHGDGYDQFHGKLJKVSHHGUDLOFRQVWUXFWLRQ 2.3 Execution of a Complete-responsibility-based Management System

)RUVDIHRSHUDWLRQDWWKHPD[LPXPVSHHGRINPK*\HRQJEX+LJK6SHHG 5DLOVKRXOGEHWKRURXJKO\FRQVWUXFWHGZLWKWKHKLJKHVWTXDOLW\VDIHW\DQGSURFHVV FRQWUROEXWZLWKWKHODFNRIH[SHULHQFHLQVXFKSURMHFWVDQGWKHIDFWWKDWWKHYHKLFOH W\SHKDGQRWEHHQGHFLGHGWKH$XWKRULW\FRQGXFWHGWKHGHVLJQEDVHGRQWKH8,& VWDQGDUGDQGRUGHUHGWKHFRQVWUXFWLRQ$VDUHVXOWWKHODFNRITXDOLW\FRQVFLRXVQHVV of the contractor, and the low management level in South Korea, in the initial project implementation period, among others, resulted in poor construction.

$FFRUGLQJO\WRIXQGDPHQWDOO\UHVROYHWKHSUREOHPRISRRUFRQVWUXFWLRQWKH $XWKRULW\LQLWLDOO\FRPPLVVLRQHG6<675$WRUHYLHZDQGUHYLVHWKHGHVLJQDQGWKHQ LPSOHPHQWHGWKHFRQWUDFWRUQDPHGFRQVWUXFWLRQSURMHFWV\VWHPWRGHYHORSTXDOLW\ consciousness on the part of the contractor.

,QDGGLWLRQWKH$XWKRULW\LPSOHPHQWHGWKHFRPSOHWHUHVSRQVLELOLW\EDVHG management system in all the construction zones, and hired specialists from foreign VXSHUYLVLRQFRPSDQLHVVXFKDV'(&LQ*HUPDQ\DQG,1*(523LQ)UDQFHWRFRQGXFW verification and inspection tasks with the South Korean supervision team, and to DGGUHVVWKHWHFKQLFDOVKRUWDJH7KHFRPSOHWHUHVSRQVLELOLW\EDVHGPDQDJHPHQWV\VWHP LVWKHV\VWHPZKHUHDVXSHUYLVLRQVSHFLDOLVWFRPSDQ\  YHULILHVLIDFRQVWUXFWLRQ SURMHFWZLWKDWRWDOFRVWRIRYHU.5:ELOOLRQRUZLWKDWRWDOÀRRUDUHDRIRYHU mFRQIRUPVWRLWVGHVLJQDQGUHODWHGGRFXPHQWV  RIIHUVWHFKQLFDOJXLGDQFHDQG   plays the role of a quality control, construction, and safety control supervisor.

2.4 Establishing the High Speed Rail Quality Control System

To ensure the perfect construction and high quality of the high speed rail, the FRQWUDFWRUWKHVXSHUYLVLQJWHDPDQGWKH$XWKRULW\PDLQWDLQHGVHSDUDWHTXDOLW\FRQWURO RUJDQL]DWLRQVDQGWRV\VWHPDWLFDOO\SHUIRUPVHOILQVSHFWLRQVWHVWVDQGUHYLHZVWR SUHYHQWWKHHPHUJHQFHRITXDOLW\UHODWHGLVVXHVWKH\HVWDEOLVKHGDTXDOLW\FRQWURO system. The contractor acquired the testing lab and quality control organization appropriate for the quality control system so that during the construction, it would assume responsibility for the project through voluntary quality control activities. The $XWKRULW\H[HUFLVHGMRLQWVXSHUYLVLRQZLWK'(&RU,1*(523ZKLFKKDGH[SHULHQFH

 Chapter 4  VSHUIRUPHG N HUHVXOWVRIVXFK HQVLYHH[SHULHQFH RQLWZDVQHFHVVDU\ KHKHDGTXDUWHUVDQG WKHWDV QWRIWKHFRQWUDFWRU WUDFWRUFRQGXFWHGWKH V\VWHPZHUHVXEMHFWHG U1&5VZHUHLVVXHGVR HVVRI*\HRQJEX+LJK WLRQV RULWVSDUWYHUL¿HGDQG SRRUFRQVWUXFWLRQDQGWR DQGUHJXODUO\FRQGXFWHG HWKHQHFHVVDU\PHDVXUHV7KH$XWKRULW\ WKHKHDGTXDUWHUV N s based on the inspection plan. k (YHQWKHVWUXFWXUHVEXLOWZLWKVXFKV\VWHPDWLFTXDOLW\FRQWURO )XUWKHUPRUHWKHTXDOLW\FRQWUROVWDIIVRI%HFKWHOZKRKDGH[W Based on the main quality control system, any issue pointed out to the contractor out to the contractor control system, any issue pointed Based on the main quality ,QRUGHUWRUHVROYHWKHLVVXHVUHODWHGLQWKHFRQVWUXFWLRQSURF E\WKHFRQVWUXFWLRQGLYLVLRQEDVHGRQWKH,37DQGVXEPLWWHGWK LQVSHFWLRQVDQGWHVWVWRWKH$XWKRULW\7KHVXSHUYLVLQJWHDPI LQVSHFWHG VHFRQGSKDVHLQVSHFWLRQ E\SURFHVVSKDVHLIWKHFRQ quality inspection tas which thoroughly inspection agency, to safety inspection by an independent safety YHUL¿HGWKHVDIHW\FRQGLWLRQVRIDOOWKHVWUXFWXUHVWRSUHYHQW UHFRQ¿UPWKHTXDOLW\RIWKHSURMHFW 2.5 Public Promotion of the High Speed Railway System 2.5 Public Promotion in high speed rail projects and contributed to the acquisition of high quality by by high quality of to the acquisition and contributed rail projects speed in high In techniques. supervision supervision team’s the South Korean supplementing and divided verified were recognized phase that should be the issues by particular, The partially controlled. points, and were thoroughly and inspection into attending FRPSOHWHGVWUXFWXUHVZHUHDOVRYHUL¿HGWKURXJKWHVWVDQGLQVSHF ZDVGLYLGHGDFFRUGLQJWRWKHLUOHYHORIVHULRXVQHVVDQG4'1VR WKDWWKHFRQWUDFWRUFRXOGWD WKHFRQVWUXFWLRQWHVWLQJFHQWHUDQGWKHRI¿FH RQWKHRWKHUK condition at the quality of the materials and on the construction inspection tests on the and strict quality control. sites, to maintain thorough LQWKHPDQDJHPHQWRIODUJHVFDOHSURMHFWVZHUHGLVSDWFKHGWRW supervision activities to ensure the highest construction sites and performed quality TXDOLW\)LQDOO\WKHVHOIHVWDEOLVKHGTXDOLW\FRQWUROGHSDUWPH FRQGXFWHGLQVSHFWLRQVRIDQGWHVWVRQ ILUVWSKDVHLQVSHFWLRQ  to conduct a series of public promotion that could have the publiuc understand that to conduct a series of public promotion that could have the publiuc understand that understanding the construction was being performed safely and establish the public’s of and trust for the project in relation to various economic, social and cultural effect 6SHHG5DLOZD\DQGWKHQDWLRQ¶VFRQFHUQRYHUWKHSRRUFRQVWUXFWL WKHFRQVWUXFWLRQRQWKHFRXQWU\WKDWZHUHWREHH[SHFWHGDIWHUWKHFRPSOHWLRQDVDQHZ WUDQVSRUWDWLRQPHDQVLQWKHst century. In particular, for a large national project like *\HRQJEX+LJK6SHHG5DLOZD\3URMHFWWKHSXEOLFXQGHUVWDQGLQJDQGFRRSHUDWLRQ are more important than anything else, and to draw the public support by informing SHRSOHRILWVEHQH¿WVZDVHVVHQWLDOLQSURPRWLQJWKHSURMHFW$VDUHVXOWYDULRXVSXEOLF promotion activities were proactively conducted.

The project conducted indirect public promotion activities using mass media EHWZHHQDQGZKLFKZHUHOLPLWHGLQRIIHULQJJHQHUDOLQIRUPDWLRQRIWKH FXUUHQWVWDWXVRIWKHSURMHFWDQGWKHLQWURGXFWLRQRIWKHFRQVWUXFWLRQVLWHV$IWHU the validity, necessity or effectiveness of the construction was neglected and the public opinions of the mass media and people on the project were largely negative. For the Corporation, this period was important to conduct public promotion strategies to FRUUHFWVXFKQHJDWLYHYLHZV$FFRUGLQJO\WKHSURMHFWH[HFXWHGGLUHFWDQGSURDFWLYH SXEOLFSURPRWLRQDFWLYLWLHVOHGE\LWV35WHDPEHWZHHQDQG

Since after 1999, the project conducted public promotion activities that presented a ORQJWHUPDQGDPELWLRXVYLVLRQWRPDNHWKHQDWLRQIHHOVDIHDQGH[SHFWIRUWKHIXWXUH KLJKVSHHGUDLOZD\V\VWHP$URXQGWKHWHVWGULYHEHWZHHQ&KHRQDQDQG'DHMHRQ VHFWLRQLQ'HFHPEHUWKHSURMHFWFRQGXFWHGDVHULHVRIGLUHFWDQGH[SHULHQWLDO HYHQWVWKURXJKWKHPDVVPHGLDSXEOLFDWLRQRI35PDWHULDOVDQGWHVWGULYHHYHQWV6XFK events that proposed the vision targeted the competitive marketing against various other types of transportation means that would emerge along with the completion of the project.

 Chapter 5 98 VWREXLOGXS LPSURYHGLWV HVORFDOO\DQG DWLRQ DGYDQFH.RUHD¶V HGXFHWKHEXGJHW FDUULHGRXWE\WKH KHERGLHVRIKLJK YHWHFKQRORJLHVLQ UPVDQGDUFKLWHFWXUDO WKHZRUOGFODVVOHYHO XQWU\GHSHQGHGRQIRUHLJQ . 5 %\VHFXULQJKLJKVSHHGUDLOWHFKQRORJLHV.RUHDKDVGUDVWLFDOO\ 2QHRIWKHPDMRUDFKLHYHPHQWVRIWKHKLJKVSHHGUDLOSURMHFWZD RIWKH([SRUW 1.1 Major Achievements 1.1 Major (QKDQFHPHQWRI5DLO7HFKQRORJ\&RPSHWLWLYHQHVVDQG3UHSDU 1. Evaluation Evaluation and Implications and Evaluation Chapter overall architectural design capabilities in conventional rails, subways, light rail, and overall architectural design capabilities in RWKHUPHDQVRISXEOLFWUDQVSRUWDWLRQ7KLVLVH[SHFWHGWRLPSUR designers to participate in the construction of the highspeed rail of Taiwan, among Taiwan, of the highspeed rail of designers to participate in the construction other overseas projects. UHODWHG¿HOGV$HURG\QDPLFWHFKQRORJLHVFDQEHXVHGWRGHVLJQW speed vehicles such as aircraft, cars, and guided missiles. Car body sealing and pressure wave prevention technologies, which are designed to prevent passengers from ringing in the ears, are being used to design aircraft, submarines, from suffering 7KHORFDOL]DWLRQRI.RUHD¶VKLJKVSHHGUDLOWHFKQRORJ\KHOSHGU IRUWKHSURMHFWFUHDWHGMREVDQGHQDEOHGORFDOFRQVWUXFWLRQ¿ WHFKQRORJ\EXWWKHVHFRQGVWDJH $SULO1RYHPEHU ZDV ORFDOWHFKQLFDOWHDPWKXVXSJUDGLQJ.RUHD¶VUDLOWHFKQRORJ\WR .RUHD¶VWHFKQRORJLFDOH[SHULHQFHLQDSSO\LQJIRUHLJQWHFKQRORJL RYHUFRPLQJWKHFRUUHVSRQGLQJFKDOOHQJHV7KLVH[SHULHQFHKHOSHG ORFDOUDLOWHFKQRORJ\,QWKH¿UVWVWDJHRIWKHSURMHFWWKHFR HWF&RPSXWHUFRQWURODQGVHOIH[DPLQDWLRQWHFKQRORJLHVDUHEHLQJXVHGLQWKH LQGXVWULDOHTXLSPHQWDXWRPDWLRQLQGXVWULDOURERWDQGGHPDQGEDVHGVHPLFRQGXFWRU industries. Total treatment technology using computers promotes the development of the software and information industries. Largecapacity power transformation and gate control technologies are being used for home electronic products, industrial power transformation, robots, etc. Lightweight and highstrength new material WHFKQRORJLHVDUHH[SHFWHGWREHXVHGLQWKHGHYHORSPHQWRIOLJKWZHLJKWDXWRPRELOHV and other materials.

,PSURYHPHQWRI3URMHFW0DQDJHPHQW&DSDELOLWLHV

7KH+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\LQWURGXFHGDQGDSSOLHGLWVSURMHFW PDQDJHPHQWVNLOOVWRV\VWHPDWLFDOO\DQGHIILFLHQWO\PDQDJHWKHODUJHVFDOHKLJK speed rail project. In the early stages of the project, with the help of Bechtel of the 86WKHORFDOWHFKQLFDOWHDPPDQDJHGWKHSURMHFW$IWHUWKHSURMHFWPDQDJHPHQW DJUHHPHQWH[SLUHGKRZHYHUWKH$XWKRULW\HGXFDWHGLWVHPSOR\HHVRQKRZWR PDQDJHWKHSURMHFWE\WKHPVHOYHVIRVWHUHGH[SHUWVDQGEXLOWXSWKH$XWKRULW\¶V managerial capabilities.

,QWKHVHFRQGVWDJHWKH$XWKRULW\GHYHORSHGD'SURMHFWPDQDJHPHQWV\VWHP GXEEHG³*306´ZKLFKFRPELQHGVRSKLVWLFDWHGLQIRUPDWLRQDQG*,6WHFKQRORJLHV 7KH$XWKRULW\SDWHQWHG*306ORFDOO\DQGWKHUHE\XSJUDGHGLWVSURMHFWPDQDJHPHQW skills and earned project management orders for ’s rail projects, which enabled it to advance into global markets.

,QWKHVXSHUYLVLRQILHOGWKH$XWKRULW\H[HFXWHGDWRWDOUHVSRQVLEOHVXSHUYLVLRQ V\VWHPDFURVVWKHHQWLUHSURFHVVRIKLJKVSHHGUDLOSURGXFWLRQ([SHUWVIURPDIRUHLJQ VXSHUYLVRU\¿UPZHUHFRPPLVVLRQHGIRUWKHSURMHFWDQGWKHORFDOVXSHUYLVRU\WHDP FRRUGLQDWHGZLWKWKHIRUHLJQH[SHUWVZKLFKHQDEOHGWKH$XWKRULW\WRHQKDQFHLWV supervisory capabilities.

5DLVLQJ$ZDUHQHVVRI&RQVWUXFWLRQ:RUN4XDOLW\0DQDJHPHQW

9DULRXVGHIHFWVGXHWRSRRUFRQVWUXFWLRQPDQDJHPHQWZHUHGHWHFWHGLQWKHVDIHW\ LQVSHFWLRQRIWKHKLJKVSHHGUDLOSURMHFWZKLFKOHGWRVWURQJHUTXDOLW\PDQDJHPHQW

99 Chapter 5 100 QDO\VLV UDWLRQRI LOOV7KHVH N V HIIHFWLYHWKDQ WUXFWLRQSURMHFW s, measures for for s, measures WRV\VWHPDWLFDOO\ QGWHFKQRORJLHV DFWLYHO\SUHYHQW k ERUFRVWVZLWKWKH ULW\¶VFRQVWUXFWLRQ WKHORFDOL]DWLRQRI VHJPHQWWKHKLJK DQG DQGSDVVHQJHUVRI ZDVDOVRDQRWDEOH LHQWLILFPDLQWHQDQFH LRQRIWKHKLJKVSHHG ind. k LOOVZHUHLQWURGXFHG$SURDFWLYHUHSDLUV\VWHPEDVHGRQGDWDD N LQJPDQXDOVIRUQHZ¿HOGVZHUHGUDZQXSDQGIRUWKHVPRRWKRSH N :RU a. Changes in the national transportation system a. Changes in the national transportation +LJK6SHHG5DLOVKDYHKLJKHUHQHUJ\HI¿FLHQF\DQGDUHPRUHFRVW 7KHKLJKVSHHGUDLOLVDFXOPLQDWLRQRIFXWWLQJHGJHVFLHQFHVD (FRQRPLF(IIHFW &KDQJHVLQWKH1DWLRQDO7UDQVSRUWDWLRQ6\VWHPDQG6RFLDO 6HFXULQJRI+LJKVSHHG5DLO2SHUDWLRQ7HFKQRORJLHV DQG¿HOGLQVSHFWLRQ$TXDOLW\PDQDJHPHQWV\VWHPZDVGHYHORSHG SHUIRUPVHOILQVSHFWLRQDQGH[DPLQDWLRQDVZHOODVWHVWVWRSUR wor the safety of the construction secure To quality problems. VDIHPDQDJHPHQWZHUHGHYLVHG$VVXFKWKHKLJKVSHHGUDLOFRQV the industry and advanced the local construction relevant practices of improved GRPHVWLFVXSHUYLVRU\DQGRYHUVLJKWV\VWHP&XUUHQWO\WKH$XWKR quality management is cited as the best of its quality management speed rail reduced air travel demand, which led to the closure of such air travel route speed rail reduced air travel demand, which led to the closure of such air travel route LQ SULYDWHFDUVH[SUHVVEXVHVDQGDLUFUDIWKDYHGHFUHDVHG7KHUH FKDQJHLQDLUWUDYHOGHPDQG,QWKHFDVHRIWKH6HRXOWR'DHJX DQGSULRUGHWHFWLRQRIORZHUHGSHUIRUPDQFHZDVGHYHORSHG$OVR WKHRSHUDWLQJHTXLSPHQWKHOSHGUHGXFHPDLQWHQDQFHFRVWVFXWOD PDQDJHPHQWV\VWHPDXWRPDWLRQDQGLPSURYHGFXVWRPHUPDQDJHPHQW transportation, and also help reduce travel private cars, aircraft, and other means of that There was a drastic change in transportation ratios among cities time and costs. KDGKLJKVSHHGUDLOZD\VWDWLRQV5DLOSDVVHQJHUVKDYHLQFUHDVHG DQGUHSDLUV and its service is an innovative product that calls for a change in the management innovative product that calls for a change and its service is an PLQGVHW7KXVDOOWKHSURFHVVHVIRUWKHSUHSDUDWLRQDQGRSHUDW rail operation technologies. rail drastically advanced WKHKLJKVSHHGUDLOIRXUVWHSDVVHVVPHQWFULWHULDDQGRWKHUVF are also among the effects of the highspeed rail construction. of the highspeed are also among the effects

Mode Share between Vehicles after the Opening of the High Speed Rail

(unit: %)

Seoul-Busan (424 km) Seoul-Daegu (293 km) Description 2003 2008 2003 2008 Auto 14.0 5.4 41.1 32.0 Express Bus 7.6 7.5 13.7 6.3 Rail 29.3 63.3 26.5 61.7 Air 49.1 23.8 18.7 0.0 Total 100 100 100 100 Source: KORAIL Research Institute (2009)

70 70 2003 2003 60 59.7 60 2007 60 2007 50 45.1 50 41.2 40 40 32.2 27.5 30 30 23.8 23.3 23.5 20 16.9 20 10.7 12 9.4 10 8.4 8.1 10 0.4 0 0 Auto Express Rail Air Auto Express Rail Air Bus Bus

Mode Share in the Seoul-Busan Corridor
Mode Share in the Seoul-Daegu Corridor

The opening of the high speed railway reduced the transportation time amongst PDMRUFLWLHVGRZQWRWZRKRXUV 6HRXO%XVDQIURPKRXUVDQGPLQXWHVWR KRXUVDQGPLQXWHV ,QWKHIXWXUHLWLVH[SHFWHGWKDWWKHHVWDEOLVKPHQWRID.7; high speed railway network that connects all regions in the country within one hour will remove the gap between Seoul and local regions by integrating the country into one zone. b. Social and economic effect

Comparison of the Transportation Time before and after the Opening of Gyeongbu High Speed Railway (From Seoul)

101 Chapter 5  increase ratio Average annual (unit: KRW) emissions, emissions,  KHUHSHRSOH RXULVWVLQWKHVH WKHHIIHFWVRIWKH Q&2 WKHFLW\LPDJHGXH VXFKDUHVXOWRQO\ .5:ELOOLRQDQG s to the opening of KTX, both physical and psychological s to the opening of KTX, both physical k

International Conventions Held in Cities that have a KTX Station Held in Cities that have Conventions 5-3> International
Reduction in Energy and Environmental Costs due to the Gyeongbu High Speed Rail the Gyeongbu Costs due to in Energy and Environmental 5-2> Reduction

Changes in the Ratio of the Sales from Tourist Accommodation Facilities before and after the Opening of KTX

2QWKHRWKHUKDQGWKHFRQFHQWUDWLRQSKHQRPHQRQWRZDUG6HRXOWKDWORFDOFLWLHV had been worrying about before the opening of KTX was shown to be unclear. In the medical industry, the opening of KTX affected people’s movement toward Seoul for the use of medical services. However, the transportation from Seoul to KTX cities was larger than that from KTX cities to Seoul.

Trends in the Number of Days of Using Medical Facilities in Other Regions

Category 2003 2004 2005 2006 2007 2008 2009 Seoul > 4 Cities 895 953 1,037 1,273 2,643 3,556 3,785 4 Cities > Seoul 1,236 1,315 1,452 1,656 2,067 2,361 2,536 Note: The 4 cities are Busan, Daegu, Daejeon and .

The wholesale and retail sales increase ratio also showed little difference among .7;FLWLHV7KHVDOHVLQ6HRXOLQFUHDVHGE\ZKLOHWKRVHLQ'DHJXDQG%XVDQ LQFUHDVHGE\DQGUHVSHFWLYHO\:KLOHWKRVHLQ'DHMHRQGHFUDVHGE\ DVPDOOPDUJLQWKHLQFUHDVHUDWLRLVVWLOOYHU\KLJKDQGWKHPXFKZRUULHGSKHQRPHQRQ of the concentration toward Seoul is not observed so far. Still some local cities argue that the opening of KTX fortified the concentration to Seoul and weakened the FRPSHWLWLYHQHVVRIORFDOFLWLHV,QIDFWZKHQWKH\¿UVWRSHQHGWKHKLJKVSHHGUDLOZD\ V\VWHP-DSDQDOVRH[SHULHQFHGWKHFRQFHQWUDWLRQWR7RN\RLQWKHEHJLQQLQJRIWKH opening.

 Chapter 5  DGD\ZKLFK QGUHYLVHGSODQ (unit: 1,000 people/day) ULQJWRWKHKLJK WKHUHYLVHGEDVLF SHFWHGWKDWRQFH VWDWLRQVWRSSDJH  44.4 $OVREDVLFGDWDIRU XPEHURIKLJKVSHHG 10.8 33.69%p 28.7 13.9 after opening (2004-2008) %p 14.77 -5.69%p 32.8 38.5 32.9

Travel Demand for the High Speed Rail Demand for 5-5> Travel
Demand forecastActual demand 149 159 54 171 88 183 99 196 101 211 102 226 101 112 7KHKLJKVSHHGUDLOGHPDQGDVRIZDVSDVVHQJHUV 0RUHRYHUDFRQVLGHUDEOHQXPEHURIUDLOSDVVHQJHUVDUHWUDQVIHU 1.2 Downsides /RZHUGHPDQGWKDQH[SHFWHG rail passengers. VSHHGUDLOZKHUHDVQHZSDVVHQJHUVUHSUHVHQWRIWKHWRWDOQ WKHFXUUHQWUXQQLQJWLPHLVPLQXWHV,QWKHIXWXUHLWLVH[ LVKDOIRIWKHH[SHFWHGSDVVHQJHUVDGD\XQGHUWKHVHFR  2QHRIWKHUHDVRQVIRUWKLVORZHUGHPDQGLVWKDWZKLOH SODQIRUHFDVWHGWKH6HRXOWR%XVDQWUDYHOWLPHDVPLQXWHV  construction in Daejeon and Daegu is the downtown section high speed railway FRPSOHWHGWKHWUDYHOWLPHZLOOEHFORVHWRWKHRULJLQDOJRDO accumulated, which made it impossible to demand estimation were not adequately accurately forecast the demand.
Travel Demand for the High Speed Rail and the Conventional Rail

(unit: 1,000 people/day)

Description 2002 2003 2004 2005 2006 2007 2008 2009 2010 KTX - - 49 80 90 92 93 92 99 Conventional rail 172 165 138 116 111 108 112 109 116 Total 172 165 188 196 201 200 205 201 215

6XFKDODFNLQGHPDQGIRU.7;DIIHFWVWKHWUDQVSRUWDWLRQSUR¿WV.7;PDLQWDLQV DSUR¿WDEOHRSHUDWLRQDQGH[SHFWVWRIXUWKHULQFUHDVHLWVRSHUDWLQJUHYHQXHVZKHUHDV the conventional rail losses drastically increased from before the commencement of .7;GXHWRZKLFK.25$,/KDVEHHQSRVWLQJDGH¿FLWRIRYHU.5:ELOOLRQLQ WKHSDVVHQJHUFDWHJRU\HDFK\HDUDQGWKHRYHUDOOSDVVHQJHUSUR¿WVVKRZDGH¿FLW RI.5:WRELOOLRQ,IWKH.7;GHPDQGKDGLQFUHDVHGWRWKHRULJLQDOO\ HVWLPDWHGOHYHOWKHSUR¿WDELOLW\RI.25$,/¶VSDVVHQJHURSHUDWLRQPXVWKDYHKXJHO\ been improved.

KORAIL’s Passenger Carriage Revenues

(unit: KRW 100 million)

Description 2002 2003 2004 2005 2006 2007 2008 2009 2010 KTX - - -2,169 1,394 2,336 2,555 2,836 2,495 3,202 Conventional rail -400 -1,365 -2,610 -4,472 -4,636 -5,452 -6,194 -5,642 -5,245 Total -400 -1,365 -4,779 -3,078 -2,300 -2,897 -3,358 -3,147 -2,043 Note: Excluding the multi-regional electric rail and logistics revenues Source: KORAIL (each year)

+RZHYHUWKH.7;IDUHVLQ.RUHDLVYHU\ORZFRPSDUHGWRWKDWLQ-DSDQ)UDQFH RU*HUPDQ\DQGLWLVGLI¿FXOWWRUDLVHWKHIDUHV&RQVLGHULQJWKHORZIDUHVÀH[LELOLW\ RI.7;GHPDQGLWLVH[SHFWHGWKDWWKHLQFUHDVHLQWKHIDUHVZLOOSURPRWHLWV SUR¿WDELOLW\

.25$,/PDNHVPXFKHIIRUWWRUHVROYHVXFKGHILFLWLVVXHVVXFKDVFUHDWLQJ HI¿FLHQWPDQDJHPHQWDQGLPSURYLQJSUR¿WDELOLW\DQGWKXVDIWHUWKHGH¿FLWLV RQWKHGHFUHDVH%XWWRUHGXFHDODUJHDPRXQWRIGH¿FLWVLWLVQHFHVVDU\WRPDNHWKH management more efficient and create new transportation demand. KTX demand LVDNH\IDFWRULQWKHSUR¿WDELOLW\RI.25$,/WKHRSHUDWLQJERG\DQGWKHUHWXUQRI

 Chapter 5 level Fare = 100 *Korea WKH  Fare 0.39% 100 0.78% 198 0.64% 163 1.12% 283 0.86% 218 weight per GNI DQGWKH $,/WRUHSD\ PPP won) won) won) index Won) Won) $6,020 per GNI $28,120 $35,200 $34,400 $35,940 (6,808 K (31,803 K (31,803 K (38,906 K (40,648 K RXQWIRURI QWHGWR.5: FXPXODWHGGHEWRI WRUHSD\LWVGHEWVLV ZRUGVWKHUDLOXVDJH PPHQFHPHQWWR level Fare = 100 *Korea XVHG.5:ELOOLRQ N GHSHQGVRQUDLOXVVDJHIHHV N per km Fare (Won) Simple comparison Comparison by PPP 409 km 125 100 553 km 311 248 429 km 249 199 400 km 348 277 1,068 km 76 61 Won won) won) won) won) ¢70.0 ¢91.0 51,200 (81,193 ¥14,050 (171,691 (106,990 (139,087 490 yuan $XWKRULW\ .RUHD1HWZRU ICE N KTX TGV FKDUJHVWR.25$,/GRQRWHYHQSD\WKHLQWHUHVWRIWKH N Wuguang Shinkansen

Comparison of Each Country’s Railway Fares of Each Country’s 5-8> Comparison Railway
Osaka Busan Seoul- Wuhan Munich Frankfurt- -New Guangzhou- China Korea Japan France Category Zone Vehicle Fare Distance Germany 7KH.RUHD5DLO1HWZRU Note: As of March 30, 2010 (However, the fare in China is based on the second-level seat at the time of the Note: As of March 30, 2010 (However, the fare in China opening of the high speed rail in December 2009.) project based on more careful demand estimation when conducting the high speed when conducting the demand estimation on more careful project based rail project. ,QFUHDVHGFRQVWUXFWLRQGHEWV .25$,/1HWZRU FROOHFWHGIURP.25$,/IRULWVUHYHQXHV,WVUDLOXVDJHIHHVDFF LWVRSHUDWLQJSUR¿WVDQGLWVUDLOXVDJHIHHVIRU.7;DPRX ELOOLRQ,WVUDLOXVDJHIHHVIRUIRXU\HDUVIURPWKHLUFR MXVWRIWKHLQWHUHVWRQWKH.7;FRQVWUXFWLRQFRVW,QRWKHU .RUHD1HWZRU IXQGLQJWKDWLWSURFXUHGIRUWKHFRQVWUXFWLRQRI.25$,/7KHDF DPRXQWHGWR.5:WULOOLRQRIZKLFK.RUHD1HWZRU LWVGHEWRI.5:ELOOLRQ7KHUDLOXVDJHIHHVWKDWLWXVHG IHHVWKDW.RUHD1HWZRU H[FOXGLQJWKHPDLQWHQDQFHFRVWRI.5:ELOOLRQSDLGWR.25 LQWHUHVWDQGDPRXQWVWRWULOOLRQZRQDVRI6LQFHWKHDFFXPXODWHGGHEW FRQWLQXHVWRLQFUHDVHWKH¿QDQFLDOFRQGLWLRQRI.RUHD1HWZRUNZLOOEHZRUVHQHGLI the operating income from KTX does not increase.

7KHPDLQUHDVRQIRUWKHLQFUHDVHRIWKH.RUHD1HWZRUN¶VGHEWLVWKDWWKHUDLOXVDJH IHHVWKDWLWUHFHLYHVIURP.25$,/LVORZ,WLVEHOLHYHGWKDWWKLVLVGXHWRWKDWWKH KTX demand is lower than the estimated demand, and that the rail usage fees are VHWWRRORZWRRIWKH.25$,/RSHUDWLQJLQFRPH$QRWKHUUHDVRQLVWKHORZIHH OHYHORI.7;$OWKRXJKVXFKORZIHHVPD\ZRUVHQWKH¿QDQFLDOFRQGLWLRQRI.RUHD 1HWZRUNDQG.25$,/LWPD\RQWKHRWKHUKDQGEHDSRVLWLYHWKLQJIRUWKHXVHUV ZKRFDQUHFHLYHTXDOLW\VHUYLFHVDWDORZIHH$OVRLWLVGHWHUPLQHGWKDWWKHGH¿FLW LVVXHVRI.RUHD1HWZRUNDUHDSHFXOLDUVLWXDWLRQRI.RUHDQRWDJHQHUDOLVVXHIRUDOO the other countries. In other words, the increase in the rail usage fee will be able to LPSURYHWKH\HDUO\DFFXPXODWHGGH¿FLWV

,QDELGWRLPSURYHLWV¿QDQFLDOVWUXFWXUH.RUHD1HWZRUNLVVWULYLQJWRUHGXFHLWV construction project costs, to develop rail station spheres, and to generate revenues WKURXJKVXSSOHPHQWDU\EXVLQHVVHV$QGLWLVDVNLQJ.25$,/WRLQFUHDVHWKHUDLO usage fees, which currently does not even pay the interest.

Korea Network’s Accumulated KTX Debts

(unit: KRW 100 million)

Description 2004 2005 2006 2007 2008 2009 2010 Total Rail usage fees (A) 1,056 1,598 1,821 2,006 2,004 1,808 2,106 12,399 Maintenance costs (B) 1,178 1,712 1,630 802 889 781 942 7,934 Debt repayment (C= A-B) -122 -114 191 1,204 1,115 1,027 1,164 4,465 Interest cost (D) 2,003 2,764 3,084 3,555 3,305 4,111 4,627 23,449 Deficit (D-C) 2,125 2,878 2,893 2,351 2,190 3,084 3,463 18,984 Accumulated debt5) 56,446 62,899 69,530 80,908 94,245 107,338 127,070 - Source: Korea Rail Network Authority

5) Debts for financing the KTX construction costs and the interest cost deficit

 Chapter 5 108 of the of the k WHUHGWKH¿UVW FRQVWUXFWLRQ N LFH]RQHVDQG YDULRXVSXEOLF RU N RQ1RYHPEHU SRI IRFXVHGPDLQO\RQ , and the distribution , and the distribution N MHFWLVWKHODUJHVWVWDWH k able technical achievements in the rail history of k LQJHIIRUWLQHVWDEOLVKLQJ.7;VWDWLRQVDVWKHKXERI N ey nodes, such as railway stations, harbors, national national ey nodes, such as railway stations, harbors, k among k In the early stages of the KTX project, local technical foundations, particularly rail In the early stages of the KTX project, local technical foundations, particularly rail 7KH*\HRQJEX.7;FRQVWUXFWLRQSURMHFWEHJDQLQ-XQHDQGHQ 7KHUHDVRQIRUVXFKSKHQRPHQDLVEHFDXVH.RUHD1HWZRU KTX stations in some cities were constructed far away from downtown areas to away from downtown constructed far in some cities were KTX stations 2. Implications Transfer Systems Transfer $FFHVVLELOLW\3UREOHPVLQ6RPH6WDWLRQVDQG8QWLPHO\6HWX South Korea. the construction of KTX and showed less interest in connecting transportation transportation KTX and showed less interest in connecting the construction of PHDQV$VVXFKWKHVFRSHRIWKHFRQQHFWLQJWUDQVSRUWDWLRQQHWZ VWDJHRILWVRSHUDWLRQRQ$SULO7KHVHFRQGVWDJHEHJDQ DQGWKHIXOORSHUDWLRQZLOOEHODXQFKHGLQ7KLVSUR accomplishing remar project so far, the responsible party, the standard for the connecting networ the standard the responsible party, Ministry of Land recognized The not clearly presented. of the investment were facility investment, which results in the lac transportation the inefficient conserve heritage sites and due to opposition to train passage through downtown downtown train passage through to opposition to sites and due conserve heritage with other means problems led KTX to lose in competition areas. Such accessibility reducing demand and inconveniencing KTX passengers and of transportation, thus SUR¿WDELOLW\ LQGXVWULDOFRPSOH[HVDQGWRXULVWFRPSOH[HVDQGFDXVHVGLVVHUY connecting networ basic plan on establishing a connecting to improve the situation, proposed a overall connecting transportation system. transportation system and renovates the 3DUWLFXODUO\LWSURPRWHVWKHFRPSOH[WUDQVIHUFHQWHUVWKDWOLQ conventional rail stations, subway, transportation means, such as KTX stations, EXVHVDQGOLJKWUDLOVDQGLVPD development and industrial promotion local economic development, such as urban projects centered on KTX stations. WHFKQRORJ\OHYHOVZHUHYHU\ORZ'HVSLWHODFNRIXQGHUVWDQGLQJRIDQGH[SHULHQFH LQKLJKVSHHGUDLOWHFKQRORJLHVWKHFRXQWU\ZHQWDKHDGZLWKWKHSURMHFWZLWK LQDGHTXDWHO\SUHSDUHGGHVLJQGRFXPHQWVRUVSHFLILFDWLRQV$OVRWKHW\SHRIFDUV was determined very late, which required overall complementation of the design DQGFDXVHGPXFKFRQIXVLRQDQGPDQ\WULDODQGHUURUHIIRUWV2QWKHRWKHUKDQG due to the foreign currency crisis in the latter half of the 1990s, the original plan to install new tracks for KTX across all the sections was changed in the first and VHFRQGVWDJHV7KHVHWULDODQGHUURUPRYHVHQDEOHGWKHFRXQWU\WRDFFXPXODWHQHZ technologies and knowhow, and to be equipped with advanced rail construction capabilities.

The construction work was stopped many times, which delayed the project, due to various civil complaints in the process of purchasing land and obtaining approval and controversies over the safety of the tunnels passing through areas DGMDFHQWWRDEDQGRQHGPLQHV1RWDEO\WKH*\HRQJMXOLQHKDGWREHFKDQJHGGXH to environmental complaints over the Mt. Cheonseong segment and to conserve heritage sites. The Daejeon and Daegu lines, which pass downtown areas, caused FRQÀLFWVZLWKUHOHYDQWJURXSVDQGPXQLFLSDOLWLHV7KHFHQWUDOJRYHUQPHQWDQGWKH .RUHD+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\KDGWKHSDWLHQFHDQGZLVGRPWR persuade and negotiate with stakeholders, however, which helped them overcome these problems.

Despite many such difficulties and trials and errors, the project helped enhance Korea’s rail technology level as well as the design and construction technology WKURXJKRXWWKHLQGXVWU\DQGWKHFRXQWU\¶VSUR¿OH$OVRWKHFRXQWU\¶VH[SHULHQFHLQ WKHFRQVWUXFWLRQRIKLJKVSHHGUDLOVDQGHQKDQFHGUDLOWHFKQRORJLHVVKRXOGSURYLGHLW ZLWKDQHQJLQHZLWKZKLFKWRHQWHUWKHUDSLGO\H[SDQGLQJJOREDOUDLOPDUNHW

%DVHGRQ6RXWK.RUHD¶VH[SHULHQFHLQWKHFRQVWUXFWLRQRIKLJKVSHHGUDLOVVRPH WLSVWRGHYHORSLQJFRXQWULHVRQWKHLPSOHPHQWDWLRQRIKLJKVSHHGUDLOFRQVWUXFWLRQ projects are proposed, as follows.

+LJKVSHHGUDLOSURMHFWVUHTXLUHKLJKO\DGYDQFHGWHFKQRORJLHVDUHODUJHVFDOH DQGDUHKLJKO\OLNHO\WRPHHWZLWKWHFKQLFDOGLI¿FXOWLHVDQGWULDOVDQGHUURUVDQGWR IDFHYDULRXVGLI¿FXOWLHVVXFKDV1*2FRPSODLQWVLQWKHSURFHVV7REHVXFFHVVIXO

109 Chapter 5 110 PDV N the cases ing of the the ing of k k HWHWKHODUJH ZKLFKKHOSHG RIWKHUHDVRQV HGSURMHFW7KH N QGHYHQEHIRUH LVSXUSRVH WKH KLJKVSHHGUDLO N QGTXDOLW\LVVXHV WKH.RUHD+LJK PWKHEHJLQQLQJ RU QRI LHVLQWKHSURFHVV DOKLJKVSHHGUDLOV DF VWVZHUH¿QDQFHGE\ \WUDQVIHUWKH\PXVW VDIHW\DQGTXDOLW\LWLV P7KHVHRUJDQL]DWLRQV ¿QDQFLDOSURFXUHPHQW N ¶VDFFXPXODWHGRSHUDWLRQ N HWV,QLQWURGXFLQJIRUHLJQWHFKQRORJLHVIRUKLJK N HWDELOLW\DQGGHYHORSPHQWSRVVLELOLWLHV$OVRGXULQJ N LVWKHRQO\DJHQF\WKDWUXQVWKHQDWLRQDOUDLOZD\V\VWHP N ,QWKHFDVHRI6RXWK.RUHDWKHKLJKVSHHGUDLOFRQVWUXFWLRQFR ,WLVLQHYLWDEOHIRUGHYHORSLQJFRXQWULHVWRLQWURGXFHDGYDQFHG QRZKRZ.RUHD1HWZRU ease the financial difficulty. Developing countries may have difficulty financing financing Developing countries may have difficulty ease the financial difficulty. WKHSURMHFWKRZHYHUDQGPD\RSWWRFKRRVHDSULYDWHFDSLWDOE ZHOODVWKHRSHUDWLRQUDLOZD\V\VWHPRIPLOOLRQWUDLQ it is important to improve the impulsion system with the strong bac the strong with system the impulsion to improve it is important FRQVLGHUWKHWHFKQRORJLHV¶PDU the competition among bidding countries in which vehicle cost was reduced through DQGQHJRWLDWLRQVOHGWREHWWHUWHUPVLQWHFKQLFDOWUDQVIHUDQG the introduction of a foreign vehicle system, it is necessary to benchmar the introduction of a foreign vehicle system, DQGLQHQWHULQJRYHUVHDVUDLOPDU VSHHGUDLOV\VWHPVDVZHOODVFDUVDQGWREHQH¿WIURPWHFKQRORJ WKHFHQWUDOJRYHUQPHQWDQGWKHJRYHUQPHQWFRQWUROOHG.RUHD1HWZ DQGJRYHUQPHQWZLGHHIIRUWVHQDEOHG.RUHDWRVXFFHVVIXOO\FRPSO VFDOHSURMHFW1RQHWKHOHVVWKHFRXQWU\PHWZLWKPDQ\GLIILFXOW organization project. It is necessary to establish a dedicated which delayed the DQGJRYHUQPHQWZLGHPHDVXUHVDVZHOODVWRLPSURYHWKHVDIHW\D the huge distrust and suspicion toward during the construction of KTX. Because the construction almost stopped the the safety and quality of the project during SURMHFW$VDSODQWRUHGXFHWKHVXVSLFLRQDQGGLVWUXVWRQWKH is strongly recommended to ultimately technologies from foreign countries. It can thus use They transfer strategy. secure such technologies under a technology WKHVHFXUHGWHFKQRORJLHVLQFRQVWUXFWLQJDQGRSHUDWLQJDGGLWLRQ necessary to consider having internationally renowned organizations participate in renowned organizations necessary to consider having internationally the construction project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orea, the central government pays a huge amount of compensation to private RSHUDWRUVXQGHUWKH05*V\VWHPLQDQXPEHURISURMHFWVRQOLJKWUDLOVDQGWROOURDGV

)RU6RXWK.RUHDWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLOZDVILQDQFHGE\WKH FHQWUDOJRYHUQPHQWEXWWKHRSHUDWLQJORVVHVRIWKH.RUHD1HWZRUNDUHLQFUHDVLQJ each year. Such debts due to the high speed railway construction should be eventually borne by the central government, and this point should be heeded. In RWKHUZRUGVGHYHORSLQJFRXQWULHVVKRXOGEDVHWKHLUKLJKVSHHGUDLOSURMHFWVRQZHOO founded plans hinged on accurate demand, selection of operation segments, and the IHDVLELOLW\RIWKHSURMHFWWRUHGXFHJRYHUQPHQWULVN7KHEHQH¿WVRIKLJKVSHHGUDLO FRQVWUXFWLRQSURMHFWVPD\RIIHUKXJHVRFLRHFRQRPLFEHQHILWVYLVjYLVFRVWVEXW PD\QRWJXDUDQWHHSUR¿WDELOLW\2QWKHRWKHUKDQGDSULYDWHFDSLWDOEDFNHGSURMHFW ZLOOHQWDLOPDQ\GLI¿FXOWLHVLQSXUFKDVLQJODQGDQGFRPSHQVDWLQJIRUWKHPDQGLQ FRSLQJZLWKYDULRXVFLYLOFRPSODLQWV7RDFWLYDWHSULYDWHFDSLWDOEDFNHGSURMHFWVWKH JRYHUQPHQWVKRXOGDGGUHVVYDULRXVFRPSODLQWVRIYDULRXV1*2VDQGPXQLFLSDOLWLHV in addition to purchasing land and compensating for them.

7RLQFUHDVHKLJKVSHHGUDLOGHPDQGLWLVHVVHQWLDOWRGHYHORSV\VWHPVIRUHDV\ SDVVHQJHUWUDQVIHUWRRWKHUPHDQVRIWUDQVSRUWDWLRQ EXVHVWD[LVDQGVXEZD\V  6RXWK.RUHDZDVIRFXVHGPRUHRQWKHFRQVWUXFWLRQRIDKLJKVSHHGUDLOWKDQRQ WKHGHYHORSPHQWRIWUDQVIHUV\VWHPV7KXVVRPHKLJKVSHHGUDLOVWDWLRQVDUH H[SHULHQFLQJORZGHPDQG'HYHORSLQJFRXQWULHVPXVWGHYHORSWUDQVIHUV\VWHPV VLPXOWDQHRXVO\ZLWKWKHLURSHQLQJRIDKLJKVSHHGUDLOWRLQFUHDVHWKHKLJKVSHHG UDLOGHPDQGDQGWKHLPSURYHPHQWRISURILWDELOLW\$OVRKLJKVSHHGUDLOVWDWLRQVLI constructed far away from downtown areas, will lower accessibility and weaken competitiveness. Thus, construction of the stations in downtown areas should be positively considered.

$OWKRXJKWKHUHKDYHEHHQPDQ\FRPSODLQWVDQGGLI¿FXOWLHVLQ.7;FRQVWUXFWLRQ in Korea, these obstacles were wisely overcome, and now the KTX project is UHFRJQL]HGRQHRIWKHPRVWVXFFHVVIXOJRYHUQPHQWUXQSURMHFWV7KHUHDUHVRPH

111 Chapter 5 P  N WPDQDJHPHQW VSRUWDWLRQV\VWHPWKH H[SUHVVZD\V  +RZHYHUWKH.7;SURMHFW N ing effort in the construction of in the construction of ing effort k PK  N SUREOHPVUDLVHGLQWHUPVRIWKHGHEXWVRI.RUHD1HWZRU affects positively in Korea, such as the drastic enhancement of Korea’s railway railway of Korea’s the drastic enhancement in Korea, such as positively affects WHFKQRORJ\WKHLPSURYHPHQWRIWKHFRXQWU\¶VODUJHVFDOHSURMHF as well as consensus on quality management, the acquisition of KTX operation operation acquisition of KTX management, the consensus on quality as well as WHFKQLTXHVWKHHVWDEOLVKPHQWRIWKHHFRIULHQGO\QDWLRQDOWUDQ on such improvement of the national image. Based and promotion of local economy, of KTX, Korea is now ma a positive assessment QHZ.7;OLQHVDVZHOODVWKHUHQRYDWLRQRIH[LVWLQJOLQHVLQWR Kĺ References

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

 Appendix

Appendix 1. The High-speed Rail and Its Plan

 2YHUYLHZRIWKH*\HRQJEX+LJKVSHHG5DLO2SHUDWLRQV

Operations Overview (as of 2011)

Category Description ‡st stage (Seoul-Daegu): April 2004 (Downtown areas in Daeju and Dajeon, and electrification of the existing Daegu-Busan segment) Commencement ‡nd stage (Daegu-Busan): November 2010 (Construction of new tracks between date Daegu and Busan, and use of the existing rails in the downtown areas in Daejeon and Daegu) ‡)XOORSHUDWLRQ GRZQWRZQDUHDVLQ'DHMLHRQDQG'DHJX VFKHGXOHGIRU ‡6HRXO%XVDQNP - New high-speed rail tracks: 346.4 km (as of 2011) Length - Existing tracks: 77.4 km (Seoul-, and downtown area segments in Daejeon and Daegu) Frequency ‡IUHTXHQFLHVGXULQJZHHNGD\VDQGIUHTXHQFLHVGXULQJZHHNHQGV Max. speed ‡NPK ‡6HRXO*ZDQJP\HRQJ&KHRQDQDQG$VDQ2VRQJ'DHMHRQ*LPFKHRQ *XPL  Stations Dongdaegu, Singyeongju, Ulsan, and Busan Running time ‡1RQVWRSKRXUVDQGPLQXWHV (Seoul-Busan) ‡6WRSSLQJDWVWDWLRQVKRXUVDQGPLQXWHV



Fares (as of 2011)

(unit: KRW)

Seoul-Daejeon Seoul-Daegu Seoul-Busan Description (159.8 km) (293.1 km) (423.8 km) Adults 30,000 53,800 72,500 Special room Children 19,300 34,600 46,600 Elderly 23,600 42,300 57,000 Adults 21,400 38,400 51,800 Weekdays Regular room Children 10,700 19,200 25,900 (Mon.-Thu.) Elderly 15,000 26,900 36,300 Adults 20,300 36,500 49,200 Seat unavailability / Children 10,100 18,200 24,600 free seat Elderly 14,200 25,500 34,400 Adults 32,100 57,500 77,700 Special room Children 20,600 36,900 49,900 Elderly 25,200 45,200 55,500 Adults 22,900 41,100 55,500 Weekends Regular room Children 11,400 20,500 27,700 (Fri.–Sun.) Elderly 16,000 28,800 38,800 Adults 21,800 39,000 52,700 Seat unavailability / Children 10,900 19,500 26,300 free seat Elderly 15,300 27,300 36,900 Source: Korea Rail Network Authority

Travel Demand

(unit: 1,000 people/day)

Description 2004 2005 2006 2007 2008 2009 2010 KTX carriage 19,791 32,104 36,017 36,709 37,417 36,823 40,765 demands

   3ODQIRUWKH+LJKVSHHG5DLO&RQVWUXFWLRQ

$+RQDP+LJKVSHHG5DLO ż 3URMHFWHGVHJPHQW2VRQJ0RNSR NP ż 3URMHFWSHULRG  stVWDJH2VRQJ*ZDQJMX 6RQJMHRQJULNPVFKHGXOHGIRU FRPSOHWLRQLQ  ndVWDJH*ZDQJMX 6RQJMHRQJUL0RNSRNPVFKHGXOHGIRU FRPSOHWLRQLQ ż 3URMHFWFRVW7RWDORI.5:WULOOLRQ LQFOXGLQJDFDUFRVWRI.5: ELOOLRQ ż 6WDWLRQVIRUVWRSSDJH2VRQJ*RQJMX,NVDQ-HRQJHXS*ZDQJMXDQG0RNSR ż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highspeed rail  $XJ$SSURYDORIWKHILUVWFKDQJHLQWKHH[HFXWLRQSODQIRUWKH Honam highspeed rail project  0D\'HF6WDUWRIFRQVWUXFWLRQRIURDGEHGVHJPHQWVLQWKH2VRQJ *ZDQJMX 6RQJMHRQJUL URXWH

%6HRXO0HWURSROLWDQ 6XVHR3\HRQJWDHN +LJKVSHHG5DLO ż 3URMHFWSXUSRVH

  (YHQDIWHUWKHRSHQLQJRIWKH*\HRQJEX.7;OLQHWKH6HRXO6LKHXQJ VHJPHQW NP RIWKH*\HRQJEX/LQHLVEHLQJXVHGMRLQWO\LQWKHKLJK speed rail, regular rail, freight trains, and Seoul metropolitan subways, due to which it has reached its capacity limitations. Measures are needed to address the corresponding bottlenecks.  $OVRWKHVWDUWLQJDQGHQGLQJVWDWLRQVLQWKH6HRXOPHWURSROLWDQDUHD should be distributed to , so as to diversify the rail operation SDWWHUQV7RFUHDWHPLOOLRQSRWHQWLDOSDVVHQJHUVLQ*DQJQDPDQG*DQJ GRQJLQ6HRXODVZHOODVLQVRXWKHDVWHUQ*\HRQJJLWKH6XVHR3\HRQJWDHN KLJKVSHHGUDLOSURMHFWLVEHLQJFRQVWUXFWHG ż 3URMHFWHGVHJPHQW6XVHRa3\HRQJWDHN NP ż 3URMHFWSHULRG ż 3URMHFWFRVW.5:ELOOLRQ

National Railway Master Plan (2011~2020)

 Appendix 2. Progress of the High Speed Rail Project

 .H\3URFHVV+LVWRU\

Year Project History

‡%DVLFSODQFRQILUPHG - Four stations to be completed: Absorbing the transportation demand in the Ulsan· 06/14/1990 region and Cheonan, close to the capital region; Gyeongju and would increase the high speed rail usage rate.

‡'HWDLOHGSODQFRQILUPHG 06/10/1992 - Main line - Service line at the vehicle depot

‡)LUVWUHYLVLRQRIWKHSODQ 06/14/1993 - Realistic project cost, term extension, and cost savings

‡'DHMHRQ'DHJXGRZQWRZQ]RQHSODQUHYLVHG 04/25/1995 - Hindering urban development due to noise, vibration, and city division into two (on-the-ground (93)-underground work)

‡6HOHFWLQJDQHZURXWH NP LQ*\HRQJMX 06/05/1996 - Minimizing the damage to cultural assets; considering technical and economic feasibility; Gyeongju Station shall be built within the city limits

02/25/1997 Route change of the Sangni Tunnel zone, in which an abandoned mine was discovered

‡6HFRQGUHYLVLRQRIWKHSODQ - To minimize the initial investment cost, the plan was conducted in the first and second 07/31/1998 phases; early opening of the services in Busan by converting the existing line into an electrified line

‡$GGLWLRQDOSROLF\RQLQWHUPHGLDWHVWDWLRQV 11/07/2003 - At the Ministers’ meeting on the economy, Osong, Kimcheon, Gumi, and Ulsan were added as intermediate stations for expanding the beneficiary regions

‡7KLUGUHYLVLRQRIWKHSODQ - Three more regions (Oseong, Kimcheon-Gumi, Ulsan) were added as intermediate 08/23/2006 stations; the Daejeon-Daegu downtown route was changed to onthe-ground work; reflecting the vehicle repair facilities, etc.

‡)RXUWKUHYLVLRQRIWKHSODQ 10/26/2007 - In preparation for the future Bujeon intermediate station, the minimal infrastructure facilities cost was reflected on the total cost.

‡)LIWKUHYLVLRQRIWKHSODQ 06/24/2009 - The Daejeon-Daegu downtown route construction term was changed (12/2010> 12/2014)

118  'HWDLOHG3URJUHVV+LVWRU\

Year Project History

‡7KHFRQVWUXFWLRQRIDQHZUDLOZD\V\VWHPLQ*\HRQJEXZDVSURSRVHG 12/1973- (International Bank IBRD) 06/1974 - Survey team: SNCF survey team, Japan Foreign Railway Technical Cooperation Team

11/1978- ‡7KHFRQVWUXFWLRQRIDQHZUDLOZD\V\VWHPLQ*\HRQJEXZDVSURSRVHG 06/1981 - Services: KAIST (led by the Ministry of Transportation)

‡5HIOHFWLQJ6HRXO'DHMHRQ NP RQWKHKLJKVSHHGUDLOSODQ  06/1981 - Fifth Five-Year Economic and Social Development Plan (1982-1986)

‡5HYLVHGWRGHWHUPLQHWKHFRQVWUXFWLRQDIWHUWKHIHDVLELOLW\VXUYH\RI 03/1983 Gyeongbu High Speed Rail - Fifth Five-Year Economic and Social Development Plan revised

‡6HRXO%XVDQORQJWHUPWUDQVSRUWDWLRQLQYHVWPHQWDQGKLJKVSHHGUDLOFRQVWUXFWLRQ feasibility survey 03/1983- - Results: By early 1990, the railway and expressway in Gyeongbu would have reached their 11/1984 capacity limits, and the acquisition of a new transportation facility should focus on a railway-based plan, which offers better economic value.

‡'HWHUPLQLQJWKH6HRXO%XVDQKLJKVSHHGUDLOFRQVWUXFWLRQSROLF\ DERXWNP 05/08/1989 - Operation speed over 200 km/h; term: 08/1991-08/1998 (seven years); cost: KRW3.5 trillion (national budget)

07/1989- ‡7HFKQLFDOVXUYH\ .25$,/ 02/1991

‡,QWHUQDWLRQDO+LJK6SHHG5DLO6\PSRVLXP 6HRXO 10/16/1989- - Participated in by 631 specialists (100 from 10 foreign countries, including Japan, France, 10/22/1989 Germany, and USA)

‡3URMHFWSODQDQGURXWHGHWHUPLQHG 06/14/1990 - Route: Seoul-Cheonan-Daejeon-Daegu-Gyeongju-Busan; four intermediate stations (Cheonan, Daejeon, Daegu, Gyeongju)

03/1991- ‡$HULDOSKRWRJUDSKPHDVXUHPHQWRIWKHRSWLPDOURXWH ZLGWKRQERWKVLGHVP 04/1992

06/03/1991 ‡6XEEDVHFRXUVHGHWDLOGHVLJQVHUYLFHIRU6HRXO%XVDQEHJDQ

‡7KH5)3IRUYHKLFOHIRUPDWVHOHFWLRQZDVVHQWRXWWR-DSDQ)UDQFHDQG*HUPDQ\ GHDGOLQH 08/26/1991 01/31/92).

‡7KHGHWDLOHGURXWHZDVGHWHUPLQHG 06/10/1992 - 04/30/1992: Reflecting the issues discussed at the seventh Implementation Committee meeting

‡7KHFRQVWUXFWLRQRIWKHWHVWOLQH &KHRQDQ'DHMHRQ EHJDQ7KHVXEEDVHFRXUVHZDV 06/30/1992 constructed using South Korean technology. To meet the completion goal (1998), the construction was started before the vehicle format was determined

119 Year Project History

‡7KH+LJK6SHHG5DLO&RQVWUXFWLRQ3ODQZDVUHYLVHG - Cost: KRW 5.8462 trillion (1998) to KRW 10.74 trillion (1993) - Term: 1992-1998 to 2001 (Seoul-Daejeon: 1999) - Financing: 45% from financing support; 55% self-procurement 06/14/1993 * The project was revised. - Daejeon and Daegu Downtown section construction were changed to the ground level; the suspension of the bridges was changed to PC beam - The Anyang-Seoul-Susaek underground route was revised to use the existing line.

08/20/1993 ‡7KHSULRULWL]HGQHJRWLDWLRQSDUWQHUIRUWKHYHKLFOHVZDVVHOHFWHG $OVWKRPLQ)UDQFH 

‡7KHYHKLFOHLQWURGXFWLRQFRQWUDFWZDVFRQFOXGHG 06/15/1994 - Owner: the Authority; supplier: Korea TGV Consortium - Contract amount: About USD 2.1 billion (initial proposal: about USD 3.7 billion)

‡$FRQWUDFWRQWKHLQWURGXFWLRQRIDSXEOLFORDQDPRXQWLQJWR86'ELOOLRQZDV 08/12/1994 concluded. - Loan line: 25 financial institutes (South Korea: 7; foreign: 18)

‡7KH'DHMHRQ'DHJXVHFWLRQUHYLVHGLQWRDQXQGHUJURXQGURXWH - Considering the noise, vibration, and environmental impact of the vehicle operation as 04/25/1995 well as the division of the city, the residents requested that it be changed into an underground route.

‡$QHZURXWHWKDWZRXOGSDVVWKURXJK*\HRQJMX NP ZDVGHWHUPLQHG 06/05/1996 - Electrified line of the existing Gyeongbu railway between Daegu-Busan; the normal high speed rail operation in the whole Seoul-Busan zone by 2002

‡6WUXFWXUDOVDIHW\LQVSHFWLRQZDVFRQGXFWHGE\:-( 86$  08/01/1996 - Structures built between 06/1992 and 04/25/1996 (USD 2.83 million; about KRW 2.4 billion)

‡5HIOHFWLQJ6HRXO'DHMHRQ NP RQWKHKLJKVSHHGUDLOSODQ  02/24/1997 - Fifth Five-Year Economic and Social Development Plan (1982-1986)

‡$FKDQJHZDVPDGHLQWKH6DQJQL7XQQHOURXWHZKLFKZDVWRSDVVWKURXJKDQDEDQGRQHG 02/24/1997 mine.

04/14/1997 ‡7KHUHVXOWVRI:-(·VVDIHW\LQVSHFWLRQZHUHDQQRXQFHG

09/08/1997 ‡7KHSURMHFWUHYLVLRQGUDIWZDVDQQRXQFHGDQGDSXEOLFKHDULQJRQLWZDVKHOG

‡7KHSURMHFWUHYLVLRQGUDIWZDVGLVFXVVHGZLWKFRQFHUQHGRUJDQL]DWLRQV (The implementation of the revised project plan was postponed due to the worsening economic conditions then, such as the foreign-exchange crisis.) * Project plan review results: 11/14/1997 - Cost: KRW 10.74 trillion to KRW 17.5028 trillion - Term: 02/2005 to 11/2005 - Economic performance: B/C 1.55 to 1.22 - Financial health: Surplus seven years after the opening > 11 years after the opening; debt repayment: 17 years after the opening > 29 years after the opening

 Year Project History

‡7KHSROLF\RIUHYLHZLQJWKHSURMHFWSODQZDVGHWHUPLQHG - A joint-review team, private economic-performance analysis team, and evaluation 04/03/1998 advisory committee consisting of specialists in various fields were organized for the review of the project plan.

07/08/1998 ‡7KHUHYLVHGSURMHFWSODQGUDIWZDVGLVFXVVHGZLWKFRQFHUQHGRUJDQL]DWLRQV

‡3URMHFWSODQUHYLVLRQZDVGHFLGHG - Cost: KRW 10.73 trillion > KRW 18.4358 trillion (first phase: KRW 12.7377 trillion) 07/31/1998 - Project method: Two-phase process - Term: 06/1992-05/2002 to 04/2004 (second phase: by 2010)

‡2IILFLDOQDPHRIWKH+LJK6SHHG5DLO 07/18/1999 - KTX: “

‡7KH.7;QRLVHOLPLWZDVGHWHUPLQHG LQDJUHHPHQWZLWKWKH0LQLVWU\RI(QYLURQPHQW  11/22/1999 - Noise measurement: Leq (equivalent sound level); test line: 65-70 dB; other sections: 63-68 dB; 15 years after the opening: 60-65 dB

‡7HVWGULYHRI*\HRQJEX+LJK6SHHG5DLO / NP 12/16/1999 - speed: 200 km/h

11/13/2000 ‡7KHWHVWOLQHVHFWLRQ NP ZDVFRPSOHWHGWHVWGULYHDWNPK

11/27/2000 ‡7KHVHFRQGSKDVHSURMHFWVWDUWHGHDUO\ZLWKWKHDSSURYDORIWKH3UHVLGHQW ! 

12/01/2001- ‡5HYLHZVHUYLFHRQWKHSODQIRUWKH'DHMHRQDQG'DHJXGRZQWRZQURXWH 09/31/2003

06/18/2002 ‡6HFRQGSKDVHVHFWLRQ7KUHHVXEEDVHFRXUVHVHFWLRQVEHJDQFRQVWUXFWLRQ

07/18/2003 ‡$QXQGHUJURXQGURXWHIRU'DHJXZDVSURSRVHG

‡7KHFRQVWUXFWLRQRIDGGLWLRQDOLQWHUPHGLDWHVWDWLRQVZDVGHFLGHGDWWKH0LQLVWHUV·0HHWLQJ for the Economy 11/07/2003 - Osong, Kimcheon-Gumi, Ulsan; part of the installation cost was to be paid by the concerned local governments

‡7KHJRYHUQPHQW·VSROLF\RQWKHFRQVWUXFWLRQRIDGGLWLRQDOLQWHUPHGLDWHVWDWLRQVZDV 11/14/2003 announced.

12/31/2003 ‡7KHILUVWSKDVHRIWKH*\HRQJEX+LJK6SHHG5DLO3URMHFWZDVFRPSOHWHG

04/01/2004 ‡7KHILUVWSKDVHVHFWLRQRIWKHSURMHFWZDVRSHQHGIRUVHUYLFHV

05/12/2004 ‡2QWKHJURXQGFRQVWUXFWLRQIRUWKH'DHMHRQGRZQWRZQURXWHZDVSURSRVHG

04/2004 – ‡6HUYLFHVIRUWKHHVWDEOLVKPHQWRIWKH*\HRQJEX+LJKVSHHGUDLO,QWHUPHGLDWH6WDWLRQV 12/2004 Basic Plan

 Year Project History

‡2QWKHJURXQGFRQVWUXFWLRQRIWKH'DHMHRQGRZQWRZQURXWHZDVSURSRVHGDJDLQ 11/16/2004 - An on-the-ground route that uses the existing railway, with the renovation of the railway as a precondition

03/16/2005 ‡'LVFXVVLRQRQWKHVHFRQGSKDVHSURMHFWUHYLVLRQ – 05/2005

‡7KHGUDIWRIWKHSODQIRUWKHUHYLVLRQRIWKHVHFRQGSKDVHSURMHFWZDVVXEPLWWHGWRWKH 12/12/2005 Social-Overhead-Capital Construction Implementation Committee.

‡7KHZULWWHQGHFLVLRQRIWKH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ 07/21/2006 Committee on the second-phase project was requested.

07/21/2006- ‡7KHZULWWHQGHFLVLRQRIWKH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ 08/14/2006 Committee on the second-phase project was submitted to the minister and chairman.

‡:ULWWHQGHFLVLRQRIWKH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHH on the second-phase project: - Cost: KRW 5.6981 trillion to KRW 7.19 trillion (national budget: 35-50%) 08/23/2006 - Term: 2004-2010 to 2002-2010 - Daejeon-Daegu downtown route (underground to on-the-ground level) ,QWHUPHGLDWHVWDWLRQV'DHMHRQ'RQJGDHJX*\HRQJMX2VRQJ.LPFKHRQ‡*XPL8OVDQ

‡:ULWWHQGHFLVLRQRIWKH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHH on the second-phase project 10/26/2007 - Cost: KRW 7.19 trillion to KRW 7.2136 trillion (national budget: 50%) - Revision: Reflecting the minimal infrastructure facilities cost for the future installation of the Bujeon intermediate station on the total cost

‡:ULWWHQGHFLVLRQRIWKH6RFLDO2YHUKHDG&DSLWDO&RQVWUXFWLRQ,PSOHPHQWDWLRQ&RPPLWWHH on the second-phase project 06/18/2009 - Cost: KRW 7.2136 trillion to KRW 7.5562 trillion (national budget: 50%) - Revision: Extension of the Daejeon-Daegu downtown route construction term (12/2010-12/2014)

‡$GMXVWPHQWRIWKHWRWDOFRVWWKDWUHIOHFWVWKHQHZLQVWDOODWLRQFRVWIRUDFRQQHFWLQJOLQH between Gyeongbu High Speed Rail and Donghae Nambu Railway 11/20/2009 - Total cost: KRW 7.5562 trillion to KRW 7.9454 trillion - Cost for the installation of the new connecting railway: KRW 173.5 billion; reflecting the detail design result: KRW 215.7 billion

 Appendix 3. Relevant Laws

1. Regulation on the High-speed Rail and New International Airport Construction Committee  (QIRUFHGRQ-XO\  3UHVLGHQWLDO'HFUHH1RHQDFWHGRQ-XO\

Article 1 (Purpose). 8QGHUWKLVUHJXODWLRQWKH+LJKVSHHG5DLODQG1HZ,QWHUQDWLRQDO$LUSRUW&RQVWUXFWLRQ &RPPLWWHH ³WKHFRPPLWWHH´ VKDOOEHHVWDEOLVKHGWRGHOLEHUDWHRQDQGFRRUGLQDWH WKHEDVLFSODQVDQGPDMRUSROLFLHVIRUWKHFRQVWUXFWLRQRIDKLJKVSHHGUDLODQGDQHZ international airport in Korea.

Article 2 (Function). The committee shall deliberate on and coordinate the following matters. 1. Matters concerning the formulation of a basic plan for the construction of the highspeed rail and the new international airport.  0DWWHUVFRQFHUQLQJPDMRUSROLFLHVIRUWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLODQG the new international airport. 0DWWHUVFRQFHUQLQJWKHLQWURGXFWLRQRIWHFKQRORJLHVQHFHVVDU\IRUWKHFRQVWUXFWLRQ RIWKHKLJKVSHHGUDLODQGWKHQHZLQWHUQDWLRQDODLUSRUWDQGFRQFHUQLQJWKH development of relevant domestic technologies. 0DWWHUVFRQFHUQLQJWKH¿QDQFLQJRIWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLODQGWKH new international airport. 0DWWHUVFRQFHUQLQJLQWHUPLQLVWHULDOFRRSHUDWLRQLQWKHFRQVWUXFWLRQRIWKH highspeed rail and the new international airport. 0DWWHUVWKDWWKH&KDLUSHUVRQZLOOSURSRVHDVSDUWRIWKHDJHQGDUHJDUGLQJWKH FRQVWUXFWLRQRIWKHKLJKVSHHGUDLODQGWKHQHZLQWHUQDWLRQDODLUSRUW

Article 3 (Composition). 7KHFRPPLWWHHVKDOOFRQVLVWRIXSWRSHUVRQVLQFOXGLQJRQH&KDLUSHUVRQDQG RQH9LFHFKDLUSHUVRQ 7KH&KDLUSHUVRQVKDOOEHWKH0LQLVWHURI(FRQRPLF3ODQQLQJRI.RUHDDQGWKH 9LFHFKDLUSHUVRQVKDOOEHWKH0LQLVWHURI7UDQVSRUWDWLRQ 7KHPHPEHUVVKDOOEHWKH0LQLVWHURI+RPH$IIDLUVWKH0LQLVWHURI)LQDQFH WKH0LQLVWHURI1DWLRQDO'HIHQVHWKH0LQLVWHURI$JULFXOWXUHDQG)LVKHULHV

 WKH0LQLVWHURI&RPPHUFHWKH0LQLVWHURI(QHUJ\DQG5HVRXUFHVWKH0LQLVWHU of Construction, the Minister of Communications, the Minister of Science and Technology, the Seoul Mayor, the Forest Service Commissioner, the Minister of (QYLURQPHQWWKH.RUHD5DLO3UHVLGHQWWKH(FRQRPLF6HFUHWDU\RIWKH3UHVLGHQW DQGWKH$GPLQLVWUDWLYH&RRUGLQDWLRQ2IILFH+HDGDVZHOODVSHUVRQQHOZLWK DPSOHNQRZOHGJHDQGH[SHULHQFHLQUHOHYDQWDUHDVZKRVKDOOEHDSSRLQWHGE\WKH Chairperson.

Article 4 (Duties of the Chairperson and the Vice-chairperson). 1. The Chairperson shall represent the committee and supervise its affairs. 7KH9LFHFKDLUSHUVRQVKDOODVVLVWWKH&KDLUSHUVRQDQGVKDOODFWDVWKH&KDLUSHUVRQ when the Chairperson is incapacitated.

Article 5 (Meetings). $VGHHPHGQHFHVVDU\WKH&KDLUSHUVRQVKDOOFRQYHQHPHHWLQJVRIWKHFRPPLWWHH and shall preside over such meetings. 7KHFRPPLWWHHPHHWLQJVKDOOVWDUWZLWKWKHDWWHQGDQFHRIWKHPDMRULW\DQGVKDOO make resolutions with the concurrence of the majority of the attendees.

Article 6 (Hearing of Opinions). $VGHHPHGQHFHVVDU\WKHFRPPLWWHHPD\KHDUWKHRSLQLRQVRIUHOHYDQWSXEOLFRI¿FLDOV DQGH[SHUWVLQGHOLEHUDWLQJRQDQGFRRUGLQDWLQJWKHPDWWHUVVWLSXODWHGLQ$UWLFOH

Article 7 (Moderator). 1. The committee shall appoint one moderator to handle its administrative affairs. 7KHPRGHUDWRUVKDOOEHDSSRLQWHGE\WKH0LQLVWHURI7UDQVSRUWIURPDPRQJWKH RI¿FLDOVRIWKH0LQLVWU\RI7UDQVSRUW

Article 8 (Working Committee). 1. The committee shall establish a working committee to conduct a working review of its deliberation and coordination matters, as well as of its assigned matters. 7KHZRUNLQJFRPPLWWHHVKDOOFRQVLVWRIIHZHUWKDQPHPEHUVLQFOXGLQJRQH &KDLUSHUVRQDQGWZR9LFH&KDLUSHUVRQV 7KHZRUNLQJFRPPLWWHH&KDLUSHUVRQVKDOOEHWKH9LFHPLQLVWHURI7UDQVSRUWDWLRQ DQGWKH9LFHFKDLUSHUVRQVVKDOOEHWKH+HDGRIWKH3ODQQLQJDQG&RRUGLQDWLRQ

 2I¿FHXQGHUWKHFRQWURORIWKH0LQLVWU\RI7UDQVSRUWDQGWKH9LFHSUHVLGHQWRIWKH 5DLO6HUYLFH 7KHZRUNLQJFRPPLWWHHVKDOOFRQVLVWRIUHOHYDQWEXUHDXGLUHFWRUVIURPWKH 0LQLVWU\RI(FRQRPLF3ODQQLQJ0LQLVWU\RI+RPH$IIDLUV0LQLVWU\RI)LQDQFH 0LQLVWU\RI1DWLRQDO'HIHQVH0LQLVWU\RI$JULFXOWXUHDQG)LVKHULHV0LQLVWU\ RI&RPPHUFH0LQLVWU\RI(QHUJ\DQG5HVRXUFHV0LQLVWU\RI&RQVWUXFWLRQ Ministry of Transportation, Ministry of Communications, Ministry of Science DQG7HFKQRORJ\6HRXO&LW\)RUHVW6HUYLFH0LQLVWU\RI(QYLURQPHQWDQG.RUHD 5DLODVZHOODVRIVHFRQGDQGWKLUGJUDGHRI¿FLDOVLQFKDUJHRIWUDQVSRUWDWLRQDW WKH3UHVLGHQWLDO6HFUHWDULDW LQFOXGLQJVHFRQGRUWKLUGJUDGHVSHFLDORIILFLDOV  VHFRQGDQGWKLUGJUDGHUHYLHZHUVLQFKDUJHRIWUDQVSRUWDWLRQDWWKH$GPLQLVWUDWLYH &RRUGLQDWLRQ2I¿FHUHVHDUFKHUVIURPUHOHYDQWUHVHDUFKLQVWLWXWLRQVDQGH[SHUWV LQUHOHYDQW¿HOGVDVDSSRLQWHGE\WKH&KDLUSHUVRQ 0DWWHUVFRQFHUQLQJWKHZRUNLQJFRPPLWWHHVXFKDVLWVRSHUDWLRQDQGWKH establishment of subcommittees shall be determined by the Chairperson of the committee through a resolution by the committee. $UWLFOHVVKDOODSSO\WRWKHZRUNLQJFRPPLWWHHZLWKPRGL¿FDWLRQVDVGHHPHG necessary.

$UWLFOH 2SHUDWLRQRI:RUNLQJ0HPEHUVDQG'LVSDWFKRI5HOHYDQW2I¿FLDOV  1. To support the work of the committee, as deemed necessary, its working members VKDOOKROGRI¿FHDWWKH0LQLVWU\RI7UDQVSRUWDQG.RUHD5DLO $VGHHPHGQHFHVVDU\WRWKHFRQGXFWRIWKHZRUNRIWKHZRUNLQJPHPEHUVRIWKH FRPPLWWHHWKH0LQLVWHURI7UDQVSRUWDQGWKHSUHVLGHQWRI.RUHD5DLOPD\UHTXHVW the dispatch of officials from relevant administrative agencies, and of officials and employees from relevant corporations or research institutions, to the working group.

Article 10 (Minutes). The committee and the working committee shall keep minutes of their meetings.

Article 11 (Allowances, etc.). $OORZDQFHVDQGWULSH[SHQVHVPD\EHSDLGWRQRQSXEOLFRIILFLDOVLQWKHFRPPLWWHH and the working committee, and to relevant specialists and working group members in these committees, within the budget scope.

 Article 12 (Detailed Operational Rules). $VGHHPHGQHFHVVDU\PDWWHUVRXWVLGHWKLV'HFUHHVKDOOEHGHFLGHGRQE\WKH Chairperson through a resolution by the committee.

2. The Korea High-speed Rail Construction Authority Act  (QIRUFHGRQ0DUFK  $FW1RHQDFWHGRQ'HFHPEHU

Article 1 (Purpose). 7KLV$FWHVWDEOLVKHVWKH.RUHD+LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\ ³WKH $XWKRULW\´ WRHI¿FLHQWO\FRQVWUXFWWKHKLJKVSHHGUDLOZLWKDYLHZWRWKHH[SDQVLRQRI rail transportation networks, in a bid to improve transportation convenience and to help promote a healthy national economic development.

$UWLFOH 'H¿QLWLRQ  $KLJKVSHHGUDLOXQGHUWKLV$FWLVDUDLOZKHUHLQDWUDLQFDQUXQDWRYHUNSKRQLWV major segments, and that the Minister of Transportation designates as such along with a public notice.

Article 3 (Corporate Entity). The Authority shall be a corporation.

Article 4 (Establishment). 7KH$XWKRULW\VKDOOEHHVWDEOLVKHGZLWKDQHVWDEOLVKPHQWUHJLVWUDWLRQLQLWVPDLQ RI¿FHORFDWLRQ 7KHHVWDEOLVKPHQWUHJLVWUDWLRQGHWDLOVXQGHU6HFWLRQVKDOOEHGHVFULEHGDV IROORZV  3XUSRVH  1DPH  0DLQRI¿FHEUDQFKHVDQGVXEEUDQFKHV  1DPHVDQGDGGUHVVHVRIRI¿FHUVDQG  0HWKRGRISXEOLFDQQRXQFHPHQW 5HJDUGLQJWKH$XWKRULW\UHJLVWUDWLRQH[FHSWIRULWVHVWDEOLVKPHQWUHJLVWUDWLRQ WKHSURYLVLRQRQIRXQGDWLRQDQGFRUSRUDWLRQUHJLVWUDWLRQXQGHUWKH&LYLO$FWVKDOO DSSO\ZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\

 $UWLFOH 2I¿FH  7KHPDLQRI¿FHRIWKH$XWKRULW\VKDOOEHGH¿QHGLQLWV$UWLFOHVRI$VVRFLDWLRQ $VGHHPHGQHFHVVDU\WKH$XWKRULW\PD\HVWDEOLVKEUDQFKHVRUVXEEUDQFKHV DFFRUGLQJWRLWV$UWLFOHVRI$VVRFLDWLRQ

Article 6 (Articles of Association). 7KH$UWLFOHVRI$VVRFLDWLRQRIWKH$XWKRULW\VKDOOVWLSXODWHWKHIROORZLQJGHWDLOV  3XUSRVH  1DPH  /RFDWLRQRIWKHPDLQRI¿FH  0DWWHUVFRQFHUQLQJZRUNVDQGWKHLUH[HFXWLRQ  0DWWHUVFRQFHUQLQJDVVHWVDQGDFFRXQWLQJ  0DWWHUVFRQFHUQLQJRI¿FHUVDQGHPSOR\HHV  0DWWHUVFRQFHUQLQJWKHERDUGRIGLUHFWRUV  0DWWHUVFRQFHUQLQJWKHDPHQGPHQWRILWV$UWLFOHVRI$VVRFLDWLRQDQG 1.9. Matters concerning public announcements. ,QDPHQGLQJLWV$UWLFOHVRI$VVRFLDWLRQWKH$XWKRULW\VKDOOREWDLQSULRUDSSURYDO from the Minister of Transportation.

Article 7 (Projects). 7KH$XWKRULW\VKDOOSHUIRUPWKHIROORZLQJSURMHFWVWRDFKLHYHWKHSXUSRVHVWLSXODWHGLQ $UWLFOH &RQVWUXFWLRQRIWKHKLJKVSHHGUDLO &RQVWUXFWLRQRIWKHKLJKVSHHGUDLOVRIIRUHLJQFRXQWULHV 5HVHDUFKGHYHORSPHQWDQGVXUYH\RIKLJKVSHHGUDLOWHFKQRORJLHV 3URMHFWVWRGHYHORSKLJKVSHHGUDLOVWDWLRQVSKHUHVDQGWKHDUHDVVXUURXQGLQJWKH KLJKVSHHGUDLO 3URMHFWVDQQH[HGWR3DUDJUDSKVWRDQG 3URMHFWVFRPPLVVLRQHGE\WKHJRYHUQPHQW

$UWLFOH 2I¿FHUV  7KH$XWKRULW\VKDOOKDYHWKHIROORZLQJRIILFHUVGLUHFWRUV LQFOXGLQJRQH SUHVLGHQWDQGWZRH[HFXWLYHYLFHSUHVLGHQWV DQGRQHDXGLWRU  8SRQWKHUHFRPPHQGDWLRQRIWKH0LQLVWHURI7UDQVSRUWDWLRQWKHSUHVLGHQWVKDOO EHDSSRLQWHGDQGGLVPLVVHGE\WKH3UHVLGHQWRI.RUHD

 7KHDXGLWRUVKDOOEHDSSRLQWHGDQGGLVPLVVHGE\WKH0LQLVWHURI7UDQVSRUWDWLRQ 7KHH[HFXWLYHYLFHSUHVLGHQWVDQGGLUHFWRUVVKDOOEHDSSRLQWHGDQGGLVPLVVHG E\WKHSUHVLGHQWRIWKH$XWKRULW\VXEMHFWWRWKHDSSURYDORIWKH0LQLVWHURI Transportation. 7KHWHUPRIWKHSUHVLGHQWH[HFXWLYHYLFHSUHVLGHQWVDQGGLUHFWRUVVKDOOEHWKUHH years, and the term of the auditor shall be two years.

Article 9 (Limitation of the Representative Rights of the President). :LWKUHJDUGWRPDWWHUVZKHUHLQWKHLQWHUHVWRIWKH$XWKRULW\DQGWKDWRIWKHSUHVLGHQW FRQÀLFWZLWKHDFKRWKHUWKHSUHVLGHQWVKDOOQRWUHSUHVHQWWKH$XWKRULW\DQGLQVWHDGWKH DXGLWRUVKDOOUHSUHVHQWWKH$XWKRULW\

Article 10 (Appointment of a Proxy). 7KHSUHVLGHQWPD\DFFRUGLQJWRWKH$UWLFOHVRI$VVRFLDWLRQRIWKH$XWKRULW\DSSRLQW DSUR[\IURPDPRQJWKHHPSOR\HHVRIWKH$XWKRULW\ZKRZLOOKDYHWKHDXWKRULW\WR HQJDJHLQWULDOVDQGRWKHUPDWWHUVRIWKH$XWKRULW\

$UWLFOH 'XWLHVRI2I¿FHUV  7KHSUHVLGHQWVKDOOUHSUHVHQWWKH$XWKRULW\DQGVXSHUYLVHWKHZRUNVRIWKH $XWKRULW\ 7KHH[HFXWLYHYLFHSUHVLGHQWVKDOODVVLVWWKHSUHVLGHQWDQGRQHRIWKHPVKDOOEH WKHDFWLQJSUHVLGHQWDFFRUGLQJWRWKH$UWLFOHVRI$VVRFLDWLRQZKHQWKHSUHVLGHQWLV incapacitated. 7KHSUHVLGHQWVKDOOGLYLGHWKHZRUNVRIWKH$XWKRULW\DFFRUGLQJWRLWV$UWLFOHV RI$VVRFLDWLRQDQGLIWKHSUHVLGHQWDQGWKHH[HFXWLYHYLFHSUHVLGHQWVDUHDOO LQFDSDFLWDWHGDQRI¿FHUVKDOOEHDQWKHDFWLQJSUHVLGHQWDFFRUGLQJWRWKHSULRULW\ VWLSXODWHGLQWKH$UWLFOHVRI$VVRFLDWLRQRIWKH$XWKRULW\ 7KHDXGLWRUVKDOODXGLWWKHZRUNVDQGDFFRXQWVRIWKH$XWKRULW\

$UWLFOH 5HDVRQVIRU'LVTXDOL¿FDWLRQRI2I¿FHUV  The personnel described below shall not be eligible to become officers of the $XWKRULW\ $SHUVRQZKRLVQRWD6RXWK.RUHDQQDWLRQDO $SHUVRQZKRLVQRWUHLQVWDWHGDIWHUGHFODUHGLQFRPSHWHQWTXDVLLQFRPSHWHQWRU EDQNUXSW

 $SHUVRQZKRLVVHQWHQFHGWRLPSULVRQPHQWRUKLJKHUSXQLVKPHQWDQGZKRVH sentence ended less than two years ago or whose sentence was lifted less than two \HDUVDJRDQG $SHUVRQZKRLVGLVTXDOL¿HGRUZKRVHTXDOL¿FDWLRQVDUHVXVSHQGHGDFFRUGLQJWR laws or the court’s decision.

$UWLFOH /LPLWDWLRQRI0XOWLSOH-REVRI2I¿FHUVDQG(PSOR\HHV  7KHRI¿FHUVDQGHPSOR\HHVRIWKH$XWKRULW\VKDOOQRWHQJDJHLQEXVLQHVVHVIRUSUR¿W RWKHUWKDQWKHLUMREV2I¿FHUVVKDOOQRWHQJDJHLQRWKHUMREVZLWKRXWWKHDSSURYDORIWKH Minister of Transportation, and employees shall not engage in other jobs without the DSSURYDORIWKHSUHVLGHQWRIWKH$XWKRULW\

Article 14 (Board of Directors). 7KH$XWKRULW\VKDOOHVWDEOLVKDERDUGRIGLUHFWRUVWRUHVROYHLPSRUWDQWPDWWHUVRI WKH$XWKRULW\ 7KHERDUGVKDOOFRQVLVWRIWKHSUHVLGHQWH[HFXWLYHYLFHSUHVLGHQWVDQGGLUHFWRUV 7KHSUHVLGHQWVKDOOFRQYHQHERDUGPHHWLQJVDQGVKDOOEHWKHFKDLUSHUVRQRIWKH board. 7KHERDUGVKDOOGHFLGHRQPDWWHUVE\DSSURYDORIWKHPDMRULW\LQPHHWLQJV attended by the majority of all the members.  7KHDXGLWRUPD\DWWHQGERDUGPHHWLQJVDQGVWDWHKLVKHURSLQLRQVWKHUHDW

Article 15 (Appointment and Dismissal of Employees). 7KHHPSOR\HHVRIWKH$XWKRULW\VKDOOEHDSSRLQWHGDQGGLVPLVVHGE\WKHSUHVLGHQWRI WKH$XWKRULW\DFFRUGLQJWRLWV$UWLFOHVRI$VVRFLDWLRQ

Article 16 (Free Lending of State-owned Properties etc.). $VGHHPHGQHFHVVDU\IRUWKHHI¿FLHQWSHUIRUPDQFHRIWKHSURMHFWVRIWKH$XWKRULW\ XQGHU$UWLFOHWKHJRYHUQPHQWPD\QRWZLWKVWDQGLQJWKH6WDWHRZQHG3URSHUW\ $FWOHQGVWDWHRZQHGSURSHUWLHVWRWKH$XWKRULW\IRUIUHHRUDOORZLWWRXVHDQG EHQH¿WIURPWKHP 7KH$XWKRULW\PD\QRWZLWKVWDQGLQJWKHSURYLVLRQRQWKHVWDWHRZQHGSURSHUWLHV FRQVWUXFWEXLOGLQJVRUSHUPDQHQWIDFLOLWLHVLQWKHVDWHRZQHGSURSHUWLHVWKDWDUH OHQWWRLWIRULWVXVHDQGEHQH¿WXQGHU6HFWLRQ 1HFHVVDU\PDWWHUVFRQFHUQLQJFRQGLWLRQVDQGSURFHGXUHVIRUWKHDSSURYDORI

 OHQGLQJRUWKHXVHDQGEHQHILWXQGHU6HFWLRQVKDOOEHGHILQHGE\3UHVLGHQWLDO Decree.

Article 17 (Sublease of State-owned Properties etc.). $VGHHPHGQHFHVVDU\IRUWKHHIILFLHQWFRQVWUXFWLRQRIWKHKLJKVSHHGUDLOWKH $XWKRULW\PD\VXEOHDVHWKHVWDWHRZQHGSURSHUWLHVWKDWDUHOHQWWRLWIRULWVXVHDQG EHQH¿WXQGHU$UWLFOH ,QVXEOHDVLQJWKHSURSHUWLHVXQGHU6HFWLRQWKH$XWKRULW\VKDOOREWDLQSULRU approval from the Minister of Transportation. This shall likewise apply to a revision thereof. ,QDSSURYLQJWKHVXEOHDVHXQGHU6HFWLRQWKH0LQLVWHURI7UDQVSRUWDWLRQVKDOO have prior consultation with the head of the central administrative agency WKDWOHQGVWKHUHOHYDQWVWDWHRZQHGSURSHUW\RUWKDWDOORZVLWWREHXVHGE\WKH $XWKRULW\IRUWKH$XWKRULW\¶VEHQH¿W $UWLFOH6HFWLRQVDQGVKDOODSSO\WRWKHVXEOHDVHGVWDWHRZQHGSURSHUWLHV XQGHU6HFWLRQZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\

Article 18 (Succession to the High-speed Rail etc.). 7KH.RUHD5DLO&RUSRUDWLRQHVWDEOLVKHGDFFRUGLQJWRWKH.RUHD5DLO&RUSRUDWLRQ $FW ³.RUHD5DLO&RUSRUDWLRQ´ VKDOODFFRUGLQJWRWKH.RUHD5DLO&RUSRUDWLRQ $FWWDNHRYHUWKHULJKWVWRSURSHUWLHVDQGIDFLOLWLHVDQGWKHRSHUDWLRQWKHUHRIWKDW DUHDFTXLUHGLQFRQQHFWLRQZLWKWKHKLJKVSHHGUDLOFRQVWUXFWHGXQGHU$UWLFOH DQGZLWKWKHSURMHFWVIRUWKHGHYHORSPHQWRIWKHKLJKVSHHGUDLOVWDWLRQVSKHUHV DQGWKHDUHDVVXUURXQGLQJWKHKLJKVSHHGUDLO ³WKHDVVHWV´ DVZHOODVWRGHEWV UHODWHGWRWKHUHOHYDQWDVVHWV ³WKHGHEWV´ ZKHQDOOWKHSURMHFWVHQG$VVHWVQRW GLUHFWO\QHHGHGIRUWKHZRUNVRIWKH.RUHD5DLO&RUSRUDWLRQVKDOOEHRZQHG KRZHYHUE\WKHVWDWHDFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHH :KHQWKH$XWKRULW\LQWHQGVWRWUDQVIHUWKHDVVHWVDQGGHEWVXQGHU6HFWLRQWRWKH .RUHD5DLO&RUSRUDWLRQLWVKDOOSUHSDUHWUDQVIHUUHODWHGGRFXPHQWVDQGREWDLQ approval thereof from the Minister of Transportation. 7KHWLPHIRUWKH.RUHD5DLO&RUSRUDWLRQWRWDNHRYHUWKHDVVHWVDQGGHEWVXQGHU Section 1, as well as the method of evaluation thereof, the evaluation base date, HWFVKDOOEHGHWHUPLQHGE\3UHVLGHQWLDO'HFUHH

 Article 19 (Financing etc.). 7KHRSHUDWLRQDQGSURMHFWVRIWKH$XWKRULW\VKDOOEH¿QDQFHGDVIROORZV  7KURXJKLQYHVWPHQWE\WKHJRYHUQPHQWRURWKHUSDUWLHV  7KURXJKIXQGVUDLVHGIURPWKHLVVXDQFHRIKLJKVSHHGUDLOFRQVWUXFWLRQ ERQGV  7KURXJKSURFHHGVIURPWKHRSHUDWLRQRIDVVHWV  7KURXJKERUURZLQJV LQFOXGLQJIRUHLJQERUURZLQJVDQGPDWHULDOV DQG  7KURXJKRWKHUUHYHQXHV 1HFHVVDU\PDWWHUVFRQFHUQLQJWKHSURYLVLRQPDQDJHPHQWDQGXVHRIWKH JRYHUQPHQW¶VLQYHVWPHQWIXQGXQGHU6HFWLRQ3DUDJUDSKVKDOOEHGHWHUPLQHG E\3UHVLGHQWLDO'HFUHH

Article 20 (Projects on the Development of a Railway Station Sphere etc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

Article 21 (Collection of Service Fees etc.). 7KH$XWKRULW\PD\FROOHFWVHUYLFHRUXVHIHHVIURPWKRVHZKRXVHWKHIDFLOLWLHV that it manages. 1HFHVVDU\PDWWHUVFRQFHUQLQJWKHFROOHFWLRQWDUJHWVWKHFROOHFWHGDPRXQWDQGWKH collection procedure with regard to the collected service or use fees under Section 1 shall be determined by the Transportation Ministry Decree.

Article 22 (Investments etc.). $VGHHPHGQHFHVVDU\IRUWKHHI¿FLHQWSHUIRUPDQFHRILWVSURMHFWVWKH$XWKRULW\ PD\PDNHPRQHWDU\RUPDWHULDOLQYHVWPHQWVLQSURMHFWVXQGHUHDFK3DUDJUDSKRI $UWLFOH 1HFHVVDU\PDWWHUVFRQFHUQLQJPRQHWDU\RUPDWHULDOLQYHVWPHQWVXQGHU6HFWLRQ

 VKDOOEHGHWHUPLQHGE\WKH3UHVLGHQWLDO$FW

Article 23 (Purchase of Land etc.).  7RDFKLHYHWKHSXUSRVHVWLSXODWHGLQ6HFWLRQWKH$XWKRULW\PD\SXUFKDVHRUVHOO QHFHVVDU\ODQGVRU¿[WXUHVRQWKHUHOHYDQWODQG $VGHHPHGQHFHVVDU\IRUWKHSHUIRUPDQFHRIWKHSURMHFWVXQGHU$UWLFOHWKH $XWKRULW\PD\H[SURSULDWHRUXVHWKHODQGSURSHUWLHVRUULJKWVXQGHU$UWLFOHRI WKH/DQG([SURSULDWLRQ$FW 7KH/DQG([SURSULDWLRQ$FWVKDOODSSO\WRWKHH[SURSULDWLRQRUXVHRIODQGVXQGHU 6HFWLRQ

Article 24 (Borrowing of Funds etc.). $VGHHPHGQHFHVVDU\IRUWKHSHUIRUPDQFHRIWKHSURMHFWVXQGHU$UWLFOHWKH $XWKRULW\PD\ZLWKWKHDSSURYDORIWKH0LQLVWHURI7UDQVSRUWDWLRQERUURZIXQGV LQFOXGLQJIRUHLJQIXQGVDQGWKHLQWURGXFWLRQRIIRUHLJQPDWHULDOV 7KLVVKDOO likewise apply herein. ,QDSSURYLQJWKHERUURZLQJVXQGHU6HFWLRQWKH0LQLVWHURI7UDQVSRUWDWLRQ shall have prior consultation with the head of the relevant central administrative agency.

Article 25 (Issuance of Bonds for the High-speed Rail Construction etc.). 7R¿QDQFHWKHSURMHFWVXQGHU$UWLFOHWKH$XWKRULW\PD\LVVXHKLJKVSHHGUDLO FRQVWUXFWLRQERQGV ³WKHERQGV´  ,QLVVXLQJWKHERQGVXQGHU6HFWLRQWKH$XWKRULW\VKDOOREWDLQDSSURYDOWKHUHRI from the Minister of Transportation. In this case, the Minister of Transportation shall have prior consultation with the head of the relevant central administrative agency. 7KHJRYHUQPHQWPD\JXDUDQWHHWKHUHSD\PHQWRIWKHSULQFLSDORIWKHERQGVLVVXHG E\WKH$XWKRULW\ 7KHJRYHUQPHQWPD\KHOSLQWKHSD\PHQWRIVRPHRIWKHFRVWVLQFXUUHGIRUWKH $XWKRULW\WRSD\IRUWKHLQWHUHVWRQLWVLVVXHGERQGV 7KHH[WLQFWLYHSUHVFULSWLRQRIWKHERQGVVKDOOEHFRPSOHWHGLQ\HDUVIRUWKH SULQFLSDODQGLQ\HDUVIRUWKHLQWHUHVWIURPWKHUHSD\PHQWGDWH 2WKHUQHFHVVDU\PDWWHUVFRQFHUQLQJWKHLVVXDQFHRIERQGVVKDOOEHGHWHUPLQHGE\ 3UHVLGHQWLDO'HFUHH

 Article 26 (Approval of the Project Plan etc.). 7KH$XWKRULW\VKDOOSUHSDUHWKHEXVLQHVVSODQDQGEXGJHWSODQIRUHDFKILVFDO\HDU DFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHHDQGREWDLQDSSURYDOWKHUHRIIURPWKH0LQLVWHURI Transportation. This shall likewise apply to revisions thereof.

Article 27 (Submission of the Settlement Statement). 7KH$XWKRULW\VKDOOSUHSDUHDVWDWHPHQWRIVHWWOHPHQWRIUHYHQXHVDQGH[SHQGLWXUHVLQ HDFK¿VFDO\HDUKDYHLWH[DPLQHGE\FHUWL¿HGSXEOLFDFFRXQWDQWVDQGVXEPLWLWWRWKH 0LQLVWHURI7UDQVSRUWDWLRQE\WKHHQGRI)HEUXDU\RIWKHQH[W¿VFDO\HDU

Article 28 (Fiscal Year). 7KH¿VFDO\HDURIWKH$XWKRULW\VKDOOEHWKHVDPHDVWKDWRIWKHJRYHUQPHQW

Article 29 (Disposition of Surplus). 7KH$XWKRULW\VKDOOGLVSRVHRIWKHVXUSOXVVKRZQLQLWVVHWWOHPHQWVWDWHPHQWIRUHDFK ¿VFDO\HDULIDQ\ZLWKWKHIROORZLQJSULRULWLHV &RYHULQJRIWKHGH¿FLWFDUULHGRYHUIURPWKHSUHYLRXVWHUP )DFLOLW\UHVHUYHIXQGGH¿QHGE\WKH3UHVLGHQWLDO'HFUHHDQG 3D\PHQWWRWKHVWDWHFRIIHUV

Article 30 (Request for Provision of Data). $VGHHPHGQHFHVVDU\IRULWVZRUNVWKH$XWKRULW\PD\UHTXHVWUHOHYDQWDGPLQLVWUDWLYH DJHQFLHVRURWKHULQVWLWXWLRQVDQGRUJDQL]DWLRQVUHODWHGWRWKHKLJKVSHHGUDLOWR provide necessary data.

Article 31 (Accounting Provision of the Authority etc.). 7KH$XWKRULW\VKDOOGHWHUPLQHPDWWHUVFRQFHUQLQJLWVRUJDQL]DWLRQDFFRXQWLQJKXPDQ resource affairs, and remuneration, and obtain approval thereof from the Minister of Transportation. This shall likewise apply to revisions thereof.

Article 32 (Guidance and Supervision). $VGHHPHGQHFHVVDU\IRUWKHJXLGDQFHDQGVXSHUYLVLRQRIWKH$XWKRULW\WKH 0LQLVWHURI7UDQVSRUWDWLRQPD\UHTXLUHWKH$XWKRULW\WRUHSRUWLWVZRUNV DFFRXQWLQJDQGSURSHUWLHVRUPD\RUGHUKLVKHURI¿FLDOVWRLQVSHFWWKH$XWKRULW\¶V ERRNV¿OHVIDFLOLWLHVDQGRWKHUSURSHUWLHV

  ,IWKHUHSRUWRULQVSHFWLRQXQGHU6HFWLRQUHYHDOVLOOHJDOLW\RULPSURSULHWLHVWKH 0LQLVWHURI7UDQVSRUWDWLRQPD\LVVXHDFRUUHFWLYHDFWLRQRUGHUWRWKH$XWKRULW\  7KHRIILFLDOVZKRZLOOSHUIRUPWKHLQVSHFWLRQXQGHU6HFWLRQVKDOOFDUU\D FHUWL¿FDWHUHSUHVHQWLQJWKHLUDXWKRULW\DQGVKRZLWWRWKHUHOHYDQWSHUVRQQHO

$UWLFOH &RQ¿GHQWLDOLW\  7KH$XWKRULW\¶VRI¿FHUVRUHPSOR\HHVRUSHUVRQQHODQGWKRVHHQJDJHGLQWKHGHVLJQ FRQVWUXFWLRQLPSURYHPHQWRUUHSDLURIWKHKLJKVSHHGUDLOIDFLOLWLHVXQGHUDJUHHPHQWV ZLWKWKH$XWKRULW\RUZKRDUHHPSOR\HGIRUVXFKZRUNVVKDOOQRWOHDNFRQILGHQWLDO business information that they may come to know.

Article 34 (Ban on the Use of Similar Names). (QWLWLHVWKDWDUHQRWWKH$XWKRULW\E\WKLV$FWVKDOOQRWXVHWKHQDPH.RUHD+LJKVSHHG &RQVWUXFWLRQ$XWKRULW\RUVLPLODUQDPHV

$UWLFOH $SSOLFDWLRQRI2WKHU/DZVZLWK0RGL¿FDWLRQVDV'HHPHG1HFHVVDU\  ([FHSWDVVWLSXODWHGLQWKLV$FWWKHSURYLVLRQRQIRXQGDWLRQVDQGFRUSRUDWLRQVXQGHU WKH&LYLO$FWVKDOODSSO\WRWKH$XWKRULW\ZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\

$UWLFOH /HJDO)XQFWLRQDV3XEOLF2I¿FLDOVZLWK5HJDUGWRWKH$SSOLFDWLRQRI Punishment). :KHQDSSO\LQJ$UWLFOHVRIWKH&ULPLQDO$FWWKH$XWKRULW\¶VRIILFHUVDQG HPSOR\HHVVKDOOEHUHJDUGHGDVSXEOLFRI¿FLDOV

Article 37 (Punishment). 9LRODWRUVRI$UWLFOHVKDOOEHSHQDOL]HGZLWKXSWRWZR\HDUVLPSULVRQPHQWRUZLWKD ¿QHRIXSWR.5:PLOOLRQ

Article 38 (Fines). 9LRODWRUVRI$UWLFOHVKDOOEH¿QHGXSWR.5:PLOOLRQ

 3. High-speed Rail Construction Promotion Act  (QIRUFHGRQ$SULO  $FW1RHQDFWHGRQ'HFHPEHU

Article 1 (Purpose). 7KLV$FWGH¿QHVQHFHVVDU\PDWWHUVFRQFHUQLQJWKHHDUO\FRQVWUXFWLRQRIDKLJKVSHHG UDLOLQ.RUHDVRDVWRHI¿FLHQWO\LPSOHPHQWWKHKLJKVSHHGFRQVWUXFWLRQSURMHFWZLWK a view to coping with the rapidly increasing traffic demand and boosting Korea’s economic development.

$UWLFOH 'H¿QLWLRQ  7KHWHUPVRIWKLV$FWVKDOOEHGH¿QHGDVIROORZV ³+LJKVSHHGUDLO´UHIHUVWRDUDLOZKHUHLQDWUDLQFDQWUDYHORQPDMRUOHJVDWRYHU NSKDQGWKDWWKH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQKDVGHVLJQDWHG DVVXFKDORQJZLWKDSXEOLFQRWL¿FDWLRQWKHUHRI ³+LJKVSHHGUDLOIDFLOLW\´UHIHUVWRHDFKRIWKHIROORZLQJIDFLOLWLHV  7UDFNVRIWKHKLJKVSHHGUDLO LQFOXGLQJIDFLOLWLHVDQQH[HGWRWKHWUDFNV  DQGVWDWLRQIDFLOLWLHV LQFOXGLQJWKHWUDQVIHUIDFLOLWLHVVWLSXODWHGLQ$UWLFOH 6HFWLRQRIWKH8UEDQ7UDI¿F,PSURYHPHQW3URPRWLRQ$FWZKLFKVKDOO OLNHZLVHDSSO\KHUHXQGHU   &DUPDLQWHQDQFHGHSRWVWUDFNUHSDLUEDVHVDQGFDUGHWHQWLRQIDFLOLWLHV GHVLJQHGWRUHSDLUDQGPDLQWDLQFDUVDQGWUDFNVRIWKHKLJKVSHHGUDLO  ,QWKHKLJKVSHHGUDLOWUDQVIRUPHUVSRZHUWUDQVPLVVLRQOLQHVDQGRWKHU power facilities, as well as rail communication facilities and train control IDFLOLWLHV  )DFLOLWLHVQHHGHGWROLQNWKHRSHUDWLRQRIWKHKLJKVSHHGUDLOWRWKDWRIRWKHU UDLOV  )DFLOLWLHVWRGHYHORSWHVWDQGUHVHDUFKRQKLJKVSHHGUDLOWHFKQRORJLHVDQG  )DFLOLWLHVWRFRQVWUXFWPDLQWDLQDQGUHSDLUWKHKLJKVSHHGUDLODVGHVLJQDWHG E\WKH3UHVLGHQWLDO'HFUHH ³+LJKVSHHGUDLOFRQVWUXFWLRQSURMHFW´UHIHUVWRWKHIROORZLQJSURMHFWV  &RQVWUXFWLRQSURMHFWVIRUIDFLOLWLHVXQGHU3DUDJUDSK  5HVLGHQWLDOIDFLOLWLHVDQGFRQYHQLHQFHLQIUDVWUXFWXUHFRQVWUXFWLRQSURMHFWV for those who will lose their residential areas due to construction projects XQGHU3DUDJUDSKDQG  &RQVWUXFWLRQSURMHFWVIRUSXEOLFIDFLOLWLHVPLOLWDU\IDFLOLWLHVRUFRPPXQDO

 EXLOGLQJV H[FOXGLQJKLJKVSHHGUDLOIDFLOLWLHV WKDWVKDOOEHLQVWDOOHGXQGHU $UWLFOH6HFWLRQ

Article 3 (Formulation of a Basic Plan for the High-speed Rail Construction). $VGHHPHGQHFHVVDU\IRUWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLOWKH0LQLVWHURI &RQVWUXFWLRQDQG7UDQVSRUWDWLRQVKDOOIRUPXODWHWKHEDVLFSODQIRUWKHKLJKVSHHG UDLOFRQVWUXFWLRQ ³WKHEDVLFSODQ´ DFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHH  ,QGHYLVLQJWKHEDVLFSODQXQGHU6HFWLRQWKH0LQLVWHURI&RQVWUXFWLRQDQG Transportation shall have prior consultation with relevant mayors or provincial JRYHUQRUV ³PD\RUVDQGJRYHUQRUV´ DQGZLWKWKHKHDGVRIUHOHYDQWFHQWUDO JRYHUQPHQWDJHQFLHVDQGVKDOOKDYHWKHSODQUHYLHZHGE\WKH+LJKVSHHG5DLO &RQVWUXFWLRQ,PSXOVLRQ&RPPLWWHHDVGHVLJQDWHGE\WKH3UHVLGHQWLDO'HFUHH ³WKH LPSXOVLRQFRPPLWWHH´  7KH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQVKDOOQRWLI\WKHSXEOLFRIWKH EDVLFSODQGHYLVHGXQGHU6HFWLRQDFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHHDQGVKDOO send the plan to the mayors and governors for public disclosure thereof over a SHULRGRIPRUHWKDQGD\V 7KHEDVLFSODQVKDOOLQFOXGHWKHIROORZLQJPDWWHUV  5HJDUGLQJWKHSUHDUUDQJHGDUHDIRUWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLO LWVFKDUDFWHULVWLFVWUDI¿FVLWXDWLRQDQGIRUHFDVWVRIWUDI¿FGHPDQG  (YDOXDWLRQRIWKHHFRQRPLFVIHDVLELOLW\DQGRWKHUDVSHFWVRIWKHKLJKVSHHG UDLOFRQVWUXFWLRQ  6NHWFK\URXWHPDSV  &RQVWUXFWLRQSHULRGDQG¿QDQFLQJPHDVXUHV  $SSUR[LPDWHFRQVWUXFWLRQFRVWVDQGPLGDQGORQJWHUPIXQGRSHUDWLRQ SODQV  %XLOGLQJRIWUDQVSRUWDWLRQV\VWHPVOLQNHGWRRWKHUPHDQVRIWUDQVSRUWDWLRQ  &RXQWHUPHDVXUHVDJDLQVWHDUWKTXDNHV  3ODQIRUVHFXULQJDQGIRVWHULQJKLJKVSHHGUDLORSHUDWLRQVPDQSRZHUDQG  2WKHUPDWWHUVGHHPHGQHFHVVDU\E\WKH0LQLVWHURI&RQVWUXFWLRQDQG Transportation. 6HFWLRQVDQGVKDOODSSO\ZLWKPRGLILFDWLRQVDVGHHPHGQHFHVVDU\WR UHYLVLRQVRIWKHEDVLFSODQGHYLVHGDFFRUGLQJWR6HFWLRQ7KLVVKDOOH[FOXGHWKH UHYLVLRQRIOLJKWPDWWHUVVWLSXODWHGLQWKH3UHVLGHQWLDO'HFUHH

 Article 4 (Implementer of the High-speed Construction Project). 7KHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWVKDOOEHSHUIRUPHGE\WKH.RUHD+LJK VSHHG5DLO&RQVWUXFWLRQ$XWKRULW\HVWDEOLVKHGDFFRUGLQJWRWKHVWDWHRUWKH.RUHD +LJKVSHHG5DLO&RQVWUXFWLRQ$XWKRULW\$FW,IKRZHYHUWKHFRQVWUXFWLRQRIWKH KLJKVSHHGUDLOVKDOOEHSHUIRUPHGXQGHUWKH3ULYDWH&DSLWDO$WWUDFWLRQ3URPRWLRQ $FW&RQFHUQLQJ62&,QIUDVWUXFWXUHWKHSHUVRQGHVLJQDWHGLQWKH$FWVKDOO implement the project. $VGHHPHGQHFHVVDU\IRUWKHHIILFLHQWLPSOHPHQWDWLRQRIWKHKLJKVSHHGUDLO construction project, the Minister of Transportation and Construction may allow DQDGPLQLVWUDWLYHDJHQF\DJRYHUQPHQWLQYHVWHGLQVWLWXWLRQHWFRWKHUWKDQWKH persons designated in Section 1, to perform part of the project according to the 3UHVLGHQWLDO'HFUHH

Article 5 (Designation of Prearranged Areas, etc.). ,QLPSOHPHQWLQJWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWWKH0LQLVWHURI &RQVWUXFWLRQDQG7UDQVSRUWDWLRQPD\GHVLJQDWHSUHDUUDQJHGDUHDVIRUWKHKLJK VSHHGUDLOFRQVWUXFWLRQ ³SUHDUUDQJHGDUHDV´ RUFKDQJHWKHGHVLJQDWHGSUHDUUDQJHG areas. ,QGHVLJQDWLQJRUFKDQJLQJWKHSUHDUUDQJHGDUHDVXQGHU6HFWLRQWKH0LQLVWHURI Construction and Transportation shall have prior consultation with the relevant mayors and governors and the heads of relevant central administrative agencies, and shall have the corresponding results reviewed by the impulsion committee. 7KH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQVKDOOQRWLI\WKHSXEOLFRIWKH designated or changed prearranged areas under Section 1, according to the 3UHVLGHQWLDO'HFUHH 7KH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQVKDOOFDQFHOWKHSUHDUUDQJHG or changed areas designated under Section 1 if the project has not commenced ZLWKLQ\HDUVRIVXFKGHVLJQDWLRQRUFKDQJH

Article 6 (Limitations of this Act). 1. Those who intend to change the shape and quality of land, construct buildings, LQVWDOOIDFLOLWLHVFROOHFWVRLODQGJUDYHO LQFOXGLQJVDQGZKLFKVKDOOOLNHZLVH DSSO\KHUHXQGHU RUFRQGXFWRWKHUDFWVDVGHVLJQDWHGE\WKH3UHVLGHQWLDO'HFUHH in the prearranged areas, shall obtain approval thereof from the competent mayor, FRXQW\JRYHUQRURUGLVWULFWRI¿FHKHDG LHWKHDXWRQRPRXVGLVWULFWRI¿FHKHDG

 ZKLFKVKDOOOLNHZLVHDSSO\KHUHXQGHU 7KLVVKDOOHTXDOO\DSSO\WRDFKDQJHLQ approvals. 1RWZLWKVWDQGLQJ6HFWLRQWKRVHZKRKDYHDOUHDG\HPEDUNHGRQWKHFRQVWUXFWLRQ of the project upon the designation or notice of the prearranged areas according to the relevant laws, and who have already obtained approval and permission concerning the change in the land shape and quality, construction of buildings, LQVWDOODWLRQRIIDFLOLWLHVRUFROOHFWLRQRIVRLODQGJUDYHO LQFOXGLQJRFFDVLRQVZKHQ QRVXFKDSSURYDORUSHUPLVVLRQLVUHTXLUHGDFFRUGLQJWRWKHUHOHYDQWODZV PD\ implement such project after reporting it to the mayor, county governor, or district RI¿FHKHDGDFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHH 6HFWLRQVKDOOQRWDSSO\WRDFWVQHFHVVDU\IRUPLOLWDU\RSHUDWLRQV7KLVVKDOOQRW DSSO\KRZHYHUZKHQWKHVDIHRSHUDWLRQRIWKHKLJKVSHHGUDLOLVKDPSHUHGRU when permanent buildings or facilities need to be installed. 7KHPD\RUFRXQW\JRYHUQRURUGLVWULFWRIILFHKHDGPD\RUGHUWKHYLRODWRUVRI Section 1 to restore the original state. ,QDFFRUGDQFHZLWKWKH$GPLQLVWUDWLYH9LFDULRXV([HFXWLRQ$FWWKHPD\RUFRXQW\ JRYHUQRURUGLVWULFWRI¿FHKHDGPD\H[HFXWHQHFHVVDU\DFWLRQDJDLQVWWKRVHZKR KDYHEHHQJLYHQWKHRUGHUDFFRUGLQJWR6HFWLRQEXWZKRKDYHIDLOHGWRSHUIRUP their duty.

Article 7 (Approval of the Execution Plan). 7KH KLJKVSHHGUDLOSURMHFWLPSOHPHQWHUVXQGHU$UWLFOH ³WKHSURMHFW LPSOHPHQWHUV´ VKDOOGHYLVHDQH[HFXWLRQSODQIRUWKHKLJKVSHHGUDLOFRQVWUXFWLRQ VSHFLI\LQJWKHSURMHFWVL]HRXWOLQHSHULRG¿QDQFLQJDQGRWKHUPDWWHUVVWLSXODWHG LQWKH3UHVLGHQWLDO'HFUHH ³WKHH[HFXWLRQSODQ´ DQGVKDOOREWDLQDSSURYDOWKHUHRI from the Minister of Construction and Transportation. In this case, as deemed QHFHVVDU\IRUWKHHIILFLHQWLPSOHPHQWDWLRQRIWKHKLJKVSHHGUDLOFRQVWUXFWLRQ SURMHFWWKHSURMHFWLPSOHPHQWHUVPD\GHYLVHH[HFXWLRQSODQVDFFRUGLQJWR segments or facilities within the scope of the basic plan. ,QGHYLVLQJWKHH[HFXWLRQSODQXQGHU6HFWLRQWKHSURMHFWLPSOHPHQWHUVVKDOO reflect the results of their environmental impact evaluation, traffic impact evaluation, and survey of cultural heritage situations in the plan. 7KH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQVKDOOSXEOLFO\DQQRXQFHWKH H[HFXWLRQSODQLIDSSURYHGXQGHU6HFWLRQDFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHH and shall send copies of relevant documents to the heads of relevant local

 governments. 7KHKHDGVRIORFDOJRYHUQPHQWVZKRKDYHUHFHLYHGFRSLHVRIUHOHYDQWGRFXPHQWV XQGHU6HFWLRQVKDOOWDNHQHFHVVDU\DFWLRQLQFOXGLQJODQGUHJLVWUDWLRQQRWLFH DSSURYDODSSOLFDWLRQXQGHU$UWLFOHRIWKH8UEDQ3ODQQLQJ$FWLIWKHUHOHYDQW documents include matters that need urban planning decisions. In this case, the project implementers shall submit documents necessary for the issuance of land registration notices to the heads of local governments. ,QUHYLVLQJPDWWHUVLQFOXGHGLQWKHH[HFXWLRQSODQDVDSSURYHGXQGHU6HFWLRQ DQGGHVLJQDWHGE\WKH3UHVLGHQWLDO'HFUHHWKHSURMHFWLPSOHPHQWHUVVKDOOREWDLQ approval thereof from the Minister of Construction and Transportation. In this FDVH6HFWLRQVVKDOODSSO\ZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\

Article 8 (Relations to Other Laws). ,IWKHH[HFXWLRQSODQKDVEHHQDSSURYHGDFFRUGLQJWR$UWLFOHLWVKDOOEHUHJDUGHG as among the following approvals, permissions, decisions, reports, designation, licenses, consultations, agreements, liftings of designations, and deliberations EHLQJGRQH ³DSSURYDOSHUPLVVLRQHWF´ ,IWKHDSSURYDORIWKHH[HFXWLRQSODQ has been publicly announced, the following approvals, permissions, etc. shall be UHJDUGHGDVSXEOLFO\DQQRXQFHGDFFRUGLQJWRUHOHYDQWODZV 1.1. Consultation on or approval of the installation of public facilities etc. DFFRUGLQJWR$UWLFOHRIWKH$FWRQWKH8WLOL]DWLRQDQG0DQDJHPHQWRI 1DWLRQDO/DQGODQGWUDQVDFWLRQDSSURYDODFFRUGLQJWR$UWLFOHRIWKH VDPH$FWDQGUHSRUWLQJRIODQGWUDQVDFWLRQDJUHHPHQWVDFFRUGLQJWR$UWLFOH RIWKHVDPH$FW  3HUPLVVLRQIRUDFKDQJHLQWKHODQGVKDSHDQGTXDOLW\DFFRUGLQJWR$UWLFOH RIWKH8UEDQ3ODQQLQJ$FWGHFLVLRQRQXUEDQSODQQLQJDFFRUGLQJWR $UWLFOHRIWKHVDPH$FW OLPLWHGWRWKHIDFLOLWLHVXQGHU$UWLFOH6HFWLRQ 3DUDJUDSK6XESDUDJUDSK%RIWKHVDPH$FW GHVLJQDWLRQRIWKHXUEDQ SODQQLQJSURMHFWLPSOHPHQWHUVXQGHU$UWLFOHRIWKHVDPH$FWDQG DSSURYDORIWKHH[HFXWLRQSODQIRUWKHXUEDQSODQQLQJSURMHFWXQGHU$UWLFOH RIWKHVDPH$FW  3HUPLVVLRQIRUWKHRFFXSDWLRQRUXVHRISXEOLFZDWHUVXQGHU$UWLFOHRIWKH 3XEOLF:DWHUV0DQDJHPHQW$FW  /LFHQVLQJRIWKHUHFODPDWLRQRISXEOLFZDWHUVXQGHU$UWLFOHRIWKH3XEOLF :DWHUV5HFODPDWLRQ$FWWKHRIWKHH[HFXWLRQSODQXQGHU$UWLFOHRIWKH

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¿FHXQGHU$UWLFOHRIWKHVDPH $FWDQGRFFXSDWLRQRIURDGVXQGHU$UWLFOHRIWKHVDPH$FW   &RQVXOWDWLRQZLWKWKH3DUN0DQDJHPHQW2I¿FHXQGHU$UWLFOH6HFWLRQ RIWKH1DWXUDO3DUN$FW OLPLWHGWRDSSURYDORIWKHRFFXSDWLRQDQGXVHRI SDUNVXQGHU$UWLFOHRIWKHVDPH$FWDQGWRDSSURYDORIDFWVLQVLGHWKH SURWHFWHGSDUNDUHDVXQGHU$UWLFOHRIWKHVDPH$FW   $SSURYDORIGLYHUWHGXVHRIDJULFXOWXUDOODQGXQGHU$UWLFOHRIWKH $JULFXOWXUDO/DQG$FW  'HOLEHUDWLRQRQWUDIILFLPSDFWDVVHVVPHQWXQGHU$UWLFOHRIWKH8UEDQ 7UDI¿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eliberation by the Construction Technology Deliberation Committee XQGHU$UWLFOHRIWKH&RQVWUXFWLRQ7HFKQRORJ\0DQDJHPHQW$FW  $JUHHPHQWRQWKHDSSURYDORIFRQVWUXFWLRQHWFXQGHU$UWLFOHRIWKH )LUHILJKWLQJ$FWSHUPLVVLRQIRUWKHLQVWDOODWLRQRIIDFWRULHVHWFXQGHU $UWLFOH6HFWLRQRIWKHVDPH$FWDQGUHSRUWLQJRIWKHFRQVWUXFWLRQRI ¿UH¿JKWLQJIDFLOLWLHVXQGHU$UWLFOH6HFWLRQRIWKHVDPH$FW $SSURYDORIDFFHVVWRSURWHFWHGDUHDVRUPLOLWDU\IDFLOLWLHVXQGHU$UWLFOH RIWKH0LOLWDU\)DFLOLW\3URWHFWLRQ$FWDQGFRQVXOWDWLRQRQDSSURYDOVE\WKH UHOHYDQWDGPLQLVWUDWLYHRI¿FHXQGHU$UWLFOHRIWKHVDPH$FW $SSURYDORIWKHUHORFDWLRQRIWRPEVXQGHU$UWLFOH6HFWLRQRIWKH$FW RQ%XULDO7RPEVHWF  1RQDSSURYDORIWKHHVWDEOLVKPHQWRIPLQLQJULJKWVXQGHU$UWLFOHRI WKH0LQLQJ%XVLQHVV$FWDQGFDQFHOODWLRQRIPLQLQJULJKWVRUUHGXFWLRQRI PLQHEORFNVXQGHU$UWLFOHRIWKHVDPH$FW $SSURYDORIWKHFRQVWUXFWLRQRISULYDWHURDGVXQGHU$UWLFOHRIWKH3ULYDWH 5RDG$FW  $SSURYDORIODQGDFTXLVLWLRQXQGHU$UWLFOHRIWKH+RXVLQJ/DQG 2ZQHUVKLS/LPLWDWLRQ$FW $SSURYDORUUHSRUWLQJRIZDVWHWUHDWPHQWIDFLOLWLHVXQGHU$UWLFOHRIWKH

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paragraph in Section 1, the Minister of Construction and Transportation shall prepare relevant documents submitted by the project implementers and shall have prior consultation with the heads of relevant administrative agencies. In this case, the heads of the relevant administrative agencies shall provide their opinions ZLWKLQWKHSHULRGGHVLJQDWHGE\WKH3UHVLGHQWLDO'HFUHHIRUVXFKDUHTXHVW

Article 9 (High-speed Rail Construction Review Committee). 1. To deliberate on important matters concerning architectural technologies, FRQVWUXFWLRQWHFKQRORJLHVDQGWKHWUDIILFLPSDFWRIWKHKLJKVSHHGUDLO FRQVWUXFWLRQSURMHFWWKHKLJKVSHHGUDLOFRQVWUXFWLRQUHYLHZFRPPLWWHH ³WKH UHYLHZFRPPLWWHH´ VKDOOEHHVWDEOLVKHGXQGHUWKHFRQWURORIWKH0LQLVWHURI Construction and Transportation.  ,QDSSURYLQJWKHH[HFXWLRQSODQWKDWLQFOXGHV3DUDJUDSKVDQGRI$UWLFOH H[FOXGLQJWKHDSSURYDORIWKHFRQVWUXFWLRQRIWHPSRUDU\EXLOGLQJVXQGHU$UWLFOH 6HFWLRQRIWKH&RQVWUXFWLRQ$FW RUPDWWHUVLQ3DUDJUDSKWKH0LQLVWHU of Construction and Transportation shall have prior consultation with the review committee.  7KHUHYLHZFRPPLWWHHVKDOOKDYHXSWRPHPEHUVLQFOXGLQJWKHFRPPLWWHH chairperson, and these members shall be appointed by the Minister of &RQVWUXFWLRQDQG7UDQVSRUWDWLRQIURPDPRQJWKRVHGHVFULEHGEHORZ  )RXUWKJUDGHRUKLJKHURI¿FLDOVUHODWHGWRWKHKLJKVSHHGUDLOFRQVWUXFWLRQ project in the relevant central and local administrative agencies and local JRYHUQPHQWV

  2I¿FHUVRISXEOLFRUJDQL]DWLRQVDQGUHVHDUFKLQVWLWXWLRQVDQG  3HUVRQQHOZLWKDPSOHNQRZOHGJHDQGH[SHULHQFHLQKLJKVSHHGUDLO FRQVWUXFWLRQFLYLOHQJLQHHULQJDQGHQYLURQPHQWSURWHFWLRQDVGH¿QHGE\ the Minister of Construction and Transportation. $VGHHPHGQHFHVVDU\WKH&KDLUSHUVRQPD\IRUPDQGRSHUDWHVXEFRPPLWWHHVE\ ¿HOGDFFRUGLQJWRWKHDJHQGDIRUWKHUHYLHZFRPPLWWHH¶VGHOLEHUDWLRQRIUHOHYDQW matters. 1HFHVVDU\PDWWHUVFRQFHUQLQJWKHFRPSRVLWLRQIXQFWLRQVDQGRSHUDWLRQVRIWKH UHYLHZFRPPLWWHHXQGHU6HFWLRQVKDOOEHGH¿QHGE\WKH3UHVLGHQWLDO'HFUHH

Article 10 (Special Cases Concerning the Promotion of the High-speed Rail Construction Project and the Improvement of the Quality Thereof).  8QGHUHDFKRIWKHIROORZLQJFLUFXPVWDQFHVWKHUHOHYDQWKLJKVSHHGUDLOIDFLOLWLHV VKDOOQRWEHJRYHUQHGE\$UWLFOHVDQGRIWKH&RQVWUXFWLRQ$FW$UWLFOHRI WKHVDPH$FW$UWLFOH6HFWLRQRIWKH)LUH¿JKWLQJ$FWDQG$UWLFOH6HFWLRQ RIWKHVDPH$FW 1.1. In the event that special technologies or special machines, which were admitted by the Minister of Construction and Transportation after XQGHUJRLQJWKHUHYLHZWKHUHRIE\WKHUHYLHZFRPPLWWHHDUHXVHGDQG  ,QWKHHYHQWWKDWWKHVWUXFWXUHVDQGW\SHVRIKLJKVSHHGUDLOIDFLOLWLHV are admitted by the Minister of Construction and Transportation to be equivalent to the criteria for firefighting, accident prevention, fire prevention, and escape stipulated under relevant laws, after they are reviewed by the review committee. ,QSODFLQJRUGHUVIRUWKHFRQVWUXFWLRQRIWKHKLJKVSHHGUDLOIDFLOLWLHVZLWK GLYHUVHIXQFWLRQVDQGFKDUDFWHULVWLFVVXFKDVKLJKVSHHGUDLOVWDWLRQVWKHSURMHFW implementers may place a combined order for all such facilities according to WKH3UHVLGHQWLDO'HFUHHLIDQ\LIVHSDUDWHLQGLYLGXDORUGHUVDUHGLIILFXOWGXH to the nature of the construction work or to the technical inseparability of the construction, electricity, and electricity and communication works. 7KHSURMHFWLPSOHPHQWHUVPD\QRWZLWKVWDQGLQJ$UWLFOHRIWKH$FWRQWKH ,QGXVWULDO'HSOR\PHQWDQG&RQVWUXFWLRQRI)DFWRULHVLQVWDOOH[SDQGRUUHORFDWH WRWKHSURGXFWLRQIDFLOLWLHVYDULRXVPDWHULDOVQHFHVVDU\IRUWKHKLJKVSHHGUDLO project that are admitted by the Minister of Construction and Transportation as GLUHFWO\QHFHVVDU\IRUWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWLQWKHSUHDUUDQJHG

 areas or surrounding areas. In this case, the relevant production facilities for the construction materials shall be limited to those that are installed for the construction works during the construction period.

Article 11 (Access to and Use of Land, etc.). 5HJDUGLQJLQYHVWLJDWLRQVDQGVXUYH\LQJRULPSOHPHQWDWLRQRIWKHKLJKVSHHG UDLOFRQVWUXFWLRQSURMHFWZLWKDYLHZWRWKHGUDZLQJXSRIWKHH[HFXWLRQSODQ DVGHHPHGQHFHVVDU\WKHSURMHFWLPSOHPHQWHUPD\DFFHVVWKLUGSDUW\ODQGRU WHPSRUDULO\XVHWKLUGSDUW\ODQGDVPDWHULDODFFXPXODWLRQVLWHVSDVVDJHVRU WHPSRUDU\URDGV1RWDEO\DVGHHPHGQHFHVVDU\WKHSURMHFWLPSOHPHQWHUPD\ change or remove bamboos and trees, soil, and other obstacles from such land. $UWLFOH6HFWLRQVRIWKH8UEDQ3ODQQLQJ$FWDQG$UWLFOHRIWKHVDPH$FW VKDOODSSO\WR6HFWLRQZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\

Article 12 (Expropriation of Land, etc.). ,QLPSOHPHQWLQJWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWDVGHHPHGQHFHVVDU\ WKHSURMHFWLPSOHPHQWHUVPD\H[SURSULDWHRUXVHWKHODQGSURSHUWLHVRUULJKWV ³ODQGHWF´ VWLSXODWHGLQ$UWLFOHRIWKH/DQG([SURSULDWLRQ$FW :KHQWKHH[HFXWLRQSODQLVDSSURYHGRUSXEOLFO\DQQRXQFHGLWVKDOOEHUHJDUGHG as the project admission and the issuance of the notice of the project admission XQGHU$UWLFOHRIWKH/DQG([SURSULDWLRQ$FWDQG$UWLFOHRIWKHVDPH$FW DQGDQDSSOLFDWLRQIRUDGHFLVLRQPD\QRWZLWKVWDQGLQJ$UWLFOHRIWKH/DQG ([SURSULDWLRQ$FWDQG$UWLFOH6HFWLRQRIWKHVDPH$FWEHPDGHZLWKLQWKH SURMHFWLPSOHPHQWDWLRQSHULRGVWLSXODWHGLQWKHH[HFXWLRQSODQ 7KHFHQWUDOODQGH[SURSULDWLRQFRPPLWWHHVKDOOEHWKHFRPSHWHQWODQG H[SURSULDWLRQFRPPLWWHHIRUWKHGHFLVLRQPDNLQJRQWKHH[SURSULDWLRQRUXVHRI land, etc. under Section 1. 7KH/DQG([SURSULDWLRQ$FWVKDOODSSO\WRWKHH[SURSULDWLRQRUXVHRIODQGXQGHU 6HFWLRQZLWKPRGL¿FDWLRQVDVGHHPHGQHFHVVDU\H[FHSWRWKHUZLVHVWLSXODWHGLQ WKLV$FW

Article 13 (Limited Disposition of National and Public Lands, etc.). 1. Land owned by the central government or local governments, that is situated LQVLGHWKHSUHDUUDQJHGDUHDVDQGWKDWLVQHFHVVDU\IRUWKHKLJKVSHHGUDLO construction project, shall not be sold or transferred for purposes other than the

 LPSOHPHQWDWLRQRIWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFW 7KHSURSHUWLHVORFDWHGLQVLGHWKHSUHDUUDQJHGDUHDVDQGRZQHGE\WKHFHQWUDO JRYHUQPHQWRUE\ORFDOJRYHUQPHQWVPD\QRWZLWKVWDQGLQJWKH6WDWHRZQHG 3URSHUW\$FWWKH/RFDO)LQDQFH$FWDQGRWKHUODZVEHVROGWRWKHSURMHFW implementers on a negotiated contract basis. In this case, regarding the disposition of the use or sale of the relevant property, the Minister of Construction and Transportation shall have prior consultation with the heads of relevant administrative agencies. 8SRQDUHTXHVWIRUFRQVXOWDWLRQDFFRUGLQJWRWKHVHFRQGSDUWRI6HFWLRQWKH heads of relevant administrative agencies shall take necessary measures such as the disposition of the use and sale within 90 days of their receipt of the request. 5HJDUGLQJVWDWHRZQHGSURSHUWLHVWKDWDUHLQWHQGHGWREHVROGWRWKHSURMHFW LPSOHPHQWHUVXQGHU6HFWLRQEXWWKHPDQDJHPHQWRIILFHVRIZKLFKDUHQRW NQRZQWKH0LQLVWHURI)LQDQFHDQG(FRQRP\VKDOOQRWZLWKVWDQGLQJRWKHUODZV be responsible for their management and disposition.

$UWLFOH &RQ¿UPDWLRQRIWKH&RPSOHWLRQRIWKH&RQVWUXFWLRQ  $IWHUFRPSOHWLQJWKHFRQVWUXFWLRQZRUNLQWKHKLJKVSHHGUDLOFRQVWUXFWLRQ project, the project implementers shall, without delay, submit a construction work completion report to the Minister of Construction and Transportation, and shall REWDLQFRQ¿UPDWLRQRIWKHLUFRQVWUXFWLRQZRUNFRPSOHWLRQIURPWKHPLQLVWHU,Q this case, the Minister of Construction and Transportation may request that the inspection necessary for the confirmation of the construction work completion be conducted by heads of relevant central administrative agencies, local JRYHUQPHQWVJRYHUQPHQWLQYHVWHGLQVWLWXWLRQVDQGWKH.RUHD+LJKVSHHG5DLO &RQVWUXFWLRQ$XWKRULW\UHVHDUFKLQVWLWXWLRQVRURWKHUVSHFLDOLVWLQVWLWXWLRQV 8SRQWKHUHFHLSWRIDQDSSOLFDWLRQIRUFRQILUPDWLRQRIFRQVWUXFWLRQZRUN completion under Section 1, the Minister of Construction and Transportation shall, in the event that the works are admitted as implemented as approved after the confirmation of the construction work completion, issue a certificate of construction work completion to the applicant, and shall send the relevant documents to the relevant administrative agency if the completed facility is a building. :KHQWKHSURMHFWLPSOHPHQWHUVDUHLVVXHGDFHUWLILFDWHRIFRQVWUXFWLRQZRUN FRQ¿UPDWLRQXQGHU6HFWLRQLWVKDOOEHWDNHQWRPHDQWKDWWKHFRQVWUXFWLRQZRUN

 completion has been inspected or the construction work completion has been approved under the relevant project, in line with the permissions and approvals XQGHUHDFKSDUDJUDSKLQ$UWLFOH 7KHSURMHFWLPSOHPHQWHUVVKDOOQRWEHIRUHEHLQJLVVXHGDOLFHQVHIRUWKH FRQ¿UPDWLRQRIWKHLUFRQVWUXFWLRQZRUNFRPSOHWLRQXQGHU6HFWLRQXVHWKHODQGV DQGIDFLOLWLHVFUHDWHGRUHVWDEOLVKHGXQGHUWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFW H[FHSWZKHQWKHXVHWKHUHRIEHIRUHWKHFRQVWUXFWLRQZRUNFRPSOHWLRQLVDSSURYHG by the Minister of Construction and Transportation. $VGHHPHGQHFHVVDU\IRUWKHHIILFLHQWLPSOHPHQWDWLRQRIWKHKLJKVSHHGUDLO FRQVWUXFWLRQSURMHFWWKHSURMHFWLPSOHPHQWHUVPD\DSSO\IRUWKHFRQ¿UPDWLRQRI their construction work completion according to individual segments or facilities ZLWKLQWKHVFRSHRIWKHH[HFXWLRQSODQ

Article 15 (Ownership of Facilities, etc.). 7KHODQGVRUIDFLOLWLHVWKDWDUHFUHDWHGRUHVWDEOLVKHGXQGHUWKHKLJKVSHHGUDLO FRQVWUXFWLRQSURMHFWVKDOOXSRQWKHLUFRPSOHWLRQEHRZQHGE\WKHVWDWHH[FHSW ZLWKUHVSHFWWRWKHODQGVDQGIDFLOLWLHVWKDWDUHGH¿QHGE\WKH3UHVLGHQWLDO'HFUHH  7KH0LQLVWHURI&RQVWUXFWLRQDQG7UDQVSRUWDWLRQPD\DOORZWKHSURMHFW LPSOHPHQWHURIWKHIDFLOLWLHVRZQHGE\WKHVWDWHXQGHU6HFWLRQWRXVHDQGSUR¿W from the facilities for free within his total project investment costs according to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

Article 16 (Installation of Replaced Public Facilities, etc.). 1. The Minister of Construction and Transportation may, if there are public facilities, PLOLWDU\IDFLOLWLHVRUFRPPXQDOEXLOGLQJV H[FOXGLQJKLJKVSHHGUDLOIDFLOLWLHV ZKLFKVKDOOEHUHIHUUHGWRDV³SXEOLFIDFLOLWLHV´KHUHLQ WKDWDUHLQFRUSRUDWHGLQWR

 WKHVLWHVXQGHUWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWDQGWKDWDUHGHVLJQDWHGE\ WKH3UHVLGHQWLDO'HFUHHXSRQWKHDSSOLFDWLRQE\WKHPDQDJHPHQWRI¿FHRURZQHU of the public facilities, allow the project implementer to install public facilities HWFWKDWZLOOUHSODFHWKHH[LVWLQJIDFLOLWLHV ZKLFKVKDOOEHUHIHUUHGWRDV³UHSODFHG SXEOLFIDFLOLWLHVHWF´KHUHLQ  ,QDOORZLQJWKHSURMHFWLPSOHPHQWHUWRLQVWDOOWKHUHSODFHGSXEOLFIDFLOLWLHVHWF under Section 1, the Minister of Construction and Transportation shall specify WKLVIDFWLQKLVKHUDSSURYDORIWKHH[HFXWLRQSODQXQGHU6HFWLRQDFFRUGLQJWRWKH 3UHVLGHQWLDO'HFUHH  :KHQWKHUHSODFHGSXEOLFIDFLOLWLHVHWFKDYHEHHQJLYHQDFRQILUPDWLRQRI FRPSOHWLRQXQGHU$UWLFOHQRWZLWKVWDQGLQJWKH6WDWHRZQHG3URSHUW\$FW /RFDO)LQDQFH$FWDQGRWKHUODZVWKHH[LVWLQJSXEOLFIDFLOLWLHVHWFVKDOOEH owned for free by the project implementer, and the replaced public facilities etc. shall be owned for free by the central government and the local governments or WKHRZQHUVRIWKHH[LVWLQJIDFLOLWLHV :LWKUHJDUGWRWKHUHJLVWUDWLRQRIWKHUHSODFHGSXEOLFIDFLOLWLHVXQGHU6HFWLRQ WKHDSSURYDORIWKHH[HFXWLRQSODQRUWKHDSSURYDORIWKHUHYLVLRQWKHUHRIDQGWKH FRQ¿UPDWLRQRIWKHFRQVWUXFWLRQZRUNVVKDOOUHSODFHWKHGRFXPHQWVWKDWSURYHWKH UHJLVWUDWLRQFDXVHVDFFRUGLQJWRWKH5HDOW\5HJLVWUDWLRQ$FW

Article 17 (Supervision). 1. Under the following circumstances involving the project implementer, the Minster of Construction and Transportation may cancel the permission or approval granted XQGHUWKLV$FWRUJLYHRUGHUVWRVXVSHQGRUFKDQJHWKHFRQVWUXFWLRQZRUNVRUWR UHFRQVWUXFWFKDQJHRUUHORFDWHWKHIDFLOLWLHVRUSURSHUWLHV 1.1. In the event that the project implementer obtained the permission or DSSURYDOXVLQJLOOHJDOPHWKRGVXQGHUWKLV$FW  ,QWKHHYHQWWKDWWKHSURMHFWLPSOHPHQWHUYLRODWHGWKLV$FWRUWKHRUGHUVRU GLVSRVLWLRQVPDGHXQGHUWKLV$FWDQG  ,QWKHHYHQWWKDWGXHWRDFKDQJHLQFLUFXPVWDQFHVLWLVLPSRVVLEOHIRU WKHSURMHFWLPSOHPHQWHUWRFRQWLQXHLPSOHPHQWLQJWKHKLJKVSHHGUDLO construction project. :LWKUHJDUGWRWKHGLVSRVLWLRQVRURUGHUVPDGHXQGHU6HFWLRQWKH0LQLVWHURI Construction and Transportation shall notify the public of the corresponding UHVXOWVDFFRUGLQJWRWKH3UHVLGHQWLDO'HFUHH

 Article 18 (Reporting, Inspection, etc.). $VGHHPHGQHFHVVDU\IRUWKHLPSOHPHQWDWLRQRIWKLV$FWWKH0LQLVWHURI Construction and Transportation may require the project implementers to submit QHFHVVDU\UHSRUWVRQWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFWRUWRVXEPLW UHOHYDQWGDWD$OVRWKHPLQLVWHUPD\RUGHUUHOHYDQWRI¿FLDOVWRDFFHVVWKHRI¿FHV workplaces, or other necessary places of the project implementers so as to inspect WKHZRUNVFRQFHUQLQJWKHKLJKVSHHGUDLOFRQVWUXFWLRQSURMHFW 2IILFLDOVZKRLQVSHFWWKHZRUNVFRQFHUQLQJWKHKLJKVSHHGUDLOFRQVWUXFWLRQ SURMHFWXQGHU6HFWLRQVKDOOVKRZDFHUWL¿FDWHRIWKHLUDXWKRULW\WRWKHUHOHYDQW personnel. 1HFHVVDU\PDWWHUVFRQFHUQLQJWKHFHUWL¿FDWHXQGHU6HFWLRQVKDOOEHGHWHUPLQHG by the Construction and Transportation Ministry Decree.

Article 19 (Commissioning of the Land Purchase Project, etc.). 1. The project implementers may commission land purchase work, loss FRPSHQVDWLRQZRUNDQGUHORFDWLRQPHDVXUHSURMHFWVXQGHUWKHKLJKVSHHGUDLO construction project to the heads of competent local governments according to the 3UHVLGHQWLDO'HFUHHRUWRJRYHUQPHQWLQYHVWHGLQVWLWXWLRQVDFFRUGLQJWRWKH%DVLF $FWRQ*RYHUQPHQWLQYHVWHG,QVWLWXWLRQ0DQDJHPHQW 7KHIHHVIRUWKHFRPPLVVLRQLQJRIODQGSXUFKDVHZRUNORVVFRPSHQVDWLRQ work, and relocation measure work under Section 1 shall be determined by the 3UHVLGHQWLDO'HFUHH

Article 20 (Penalties). 7KRVHZKRVKDOOIDLOWRREWDLQDSSURYDOXQGHU$UWLFOH6HFWLRQRUZKR shall obtain approval by illegal methods, shall be sentenced to up to one year LPSULVRQPHQWRU¿QHGXSWR.5:PLOOLRQ 7KRVHZKRVKDOOEHLQYROYHGLQHDFKRIWKHIROORZLQJFLUFXPVWDQFHVVKDOOEH¿QHG XSWR.5:PLOOLRQ  3URMHFWLPSOHPHQWHUVZKRZLWKRXWMXVWL¿DEOHUHDVRQVUHIXVHGWRSHUIRUP WKHLUGXWLHVXQGHU$UWLFOH6HFWLRQ  7KRVHZKRYLRODWHGRUGHUVJLYHQXQGHU$UWLFOH6HFWLRQ  7KRVHZKRIDLOHGWRVXEPLWUHSRUWVRUGDWDXQGHU$UWLFOH6HFWLRQRU VXEPLWWHGIDOVHUHSRUWVRUGDWDDQG  7KRVHZKRUHIXVHGWRUHFHLYHLQVSHFWLRQVRUKDPSHUHGLQVSHFWLRQVXQGHU

 $UWLFOH6HFWLRQ

Article 21 (Joint Penal Provision). ,IWKHFRUSRUDWHUHSUHVHQWDWLYHWKHFRUSRUDWLRQ¶VRULQGLYLGXDOSHUVRQ¶VSUR[\RU DZRUNHURUHPSOR\HHKDVYLRODWHGWKHDFWVXQGHU$UWLFOHZLWKUHJDUGWRWKH FRUSRUDWLRQ¶VRULQGLYLGXDOSHUVRQ¶VZRUNVWKHYLRODWRUVKDOOEHSXQLVKHGDQGD¿QH VKDOOEHLPSRVHGRQWKHFRUSRUDWLRQRULQGLYLGXDOSHUVRQXQGHUWKLV$UWLFOH

 Not for sale ISBN 978-89-5503-559-9