This class exercise was written by Ahyoung Kim and reviewed by Thierry Desclos. It is intended to serve as a basis for group work and discussion only. It does not purport to provide a complete and accurate description of the situation and should not be used as the

Public Disclosure Authorized only source of material. The development of the exercise was supported by the PPIAF and ESMAP.

© The World Bank

Goyang

Country context

Public Disclosure Authorized The Republic of Korea (ROK, also known as South Korea) is located in the southern half of the Korean Peninsula in Northeast Asia. With a total area of 99,720km2, Korea’s geography is predominantly mountainous in the east, and most agricultural activities remain on the coastal low lands and plains in the west, which accounts for only about 30% of the country. As Korea is blocked off at its northern border by North Korea—with whom it does not have regular diplomatic relations—it is functionally an island, only reachable by air and marine transportation from other countries. Figure 1: Korea in Northeast Asia region Public Disclosure Authorized Public Disclosure Authorized

Source: Google Maps The total population of Korea is 51,722,903, and almost half of the country’s population (25,514,000) reside in Metro Seoul area. Korea is an exceptional example of an aid recipient turned a high-income country, with GNI per capita increasing rapidly from US$ 67 in the early 1950s to US$ 27,200 in 2016. With multiple Five Year Economic Plans, the Korean government took a central role in accelerating industrial development and created an export-oriented economy. Today, the Korean economy is quite liberal and its major industries include electronics, shipbuilding, automotive, petrochemicals, and machinery products. Also, Korea’s emerging industries include biotechnology, internet software and services, and high-tech communication. While its initial growth was focused on export-oriented industries, Korea’s focus now is based on technology and education.

Transportation Due to the high density in urban life, increasing efficiency in transportation is always a prioritized task for the Korean government. In 2015, congestion cost in Korea reached 33.4 trillion Won, taking up 2.16% of its GDP.

Figure 2: National Congestion Cost Increase (2005 - 2015)

percent 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015(est.) increase

National total 23,540 24,621 26,172 26,903 27,706 28,509 29,097 30,315 31,420 32,385 33,350 3.54 congestion inter- cost (100 9,094 9,180 9,684 9,881 10,064 10,436 10,742 11,130 11,418 11,737 12,057 2.86 regional million Won) city 14,446 15,441 16,488 17,022 17,641 19,073 18,355 19,185 20,002 20,647 21,293 3.96

GDP (trillion Won) 920 966 1,043 1,104 1,152 1,265 1,333 1,377 1,428 1,483 1,542 5.30

% of GDP 2.56 2.55 2.54 2.44 2.41 2.25 2.18 2.20 2.20 2.18 2.16 - Source: Korea Transport Institute, 2014 Korea continues to invest in its road and rail infrastructure with a total budget of KRW 15.8 trillion (Korean Won) (USD 14.4 billion) or 1.1% of 2013 GDP. At the same time, the public transportation system in Korea is heavily subsidized by the government.

As of 2010, 1.25 million inflow commuters traveled to Seoul on a daily basis; a large number of commuters departing from cities surrounding Seoul commute to and from Seoul every day (Fig.3). While the improvement in road capacity as well as the increase in the use of public transportation has significantly shortened travel time per passenger for the daily commute, it is still noteworthy that the travel distance for commuters have also greatly increased (Fig.4).

Figure 3: Commuting networks from Incheon and Gyeonggi Province to Seoul

Source: Metropolitan Transportation Authority, Survey on Household Trips, 2010

Figure 4: Average commute in Korea, 1990 - 2010

Source: OECD (2014c), Compact City Policies: Korea: Towards Sustainable and Inclusive Growth, OECD Green Growth Studies, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264225503-en

Until 1990s, Korea had been experiencing the side effects of fast economic growth, from serious traffic congestion, high levels of GHG emissions to heavy air pollution. Seeing that supply-side oriented development had met its limitations, the government made a great shift to green demand-side policies focusing on creating a transit-oriented city. Much progress was achieved with the implementation of the BRT system and extensive modernization of the metro system in the Metropolitan Seoul region, reducing average commute despite the rise in the average commuting distance. However, the public transport system still remains to be heavily subsidized to keep the fares low in order to encourage the use of public transportation over private vehicles (Fig. 5). Thanks to the government subsidy, users who transfer to different routes or modes pay by the total distance of their travel rather than paying each time they board a new mode of transportation. This policy significantly lowers the financial burden of commuting into Seoul from surrounding satellite cities, maximizing accessibility for everyone, regardless of income level.

Figure 5: Government Subsidy for Bus Companies in Seoul

Year 2010 2011 2012 2013 2014 Government subsidy (100mil. KRW) 1,900 2,224 2,654 2,343 2,538 Source: http://opengov.seoul.go.kr/public/86131

Other modes of transport are also subject to heavy government regulation and subsidization. For example, most metro lines are owned and operated by state owned enterprises such as Seoul Metro and Seoul Metropolitan Rapid Transit Corporation. Buses are operated by private companies, which are subject to regulation from city or province governments. Taxis, which are operated by private companies or individual drivers are also subject to regulation from the government. Recently, Korea has witnessed a huge pushback from taxi drivers against ride-sharing and the government has been generally supportive of the local companies and industries rather than opening up the market to foreign ride-sharing companies such as Uber Figure 6: Modal Share of Transportation in Korea

(unit: %) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Public Transportation 62 62.3 62.3 62.5 62.8 63 64.3 65.1 65.6 65.9 66 65.8 (Sum)

Bus -26.2 -27.5 -27.6 -27.6 -27.8 -27.8 -28.1 -28 -27.4 -27.1 -27 -26.5

Metro -35.8 -34.8 -34.7 -34.9 -35 -35.2 -36.2 -37.1 -38.2 -38.8 -39 -39.3

Personal 26.4 26.3 26.3 26.3 26 25.9 24.1 23.5 23.1 22.9 22.8 23 Vehicles

Taxi 6.6 6.5 6.3 6.2 6.2 6.2 7.2 7 6.9 6.8 6.8 6.8

Other 5 4.9 5.1 5 5 4.9 4.4 4.4 4.4 4.4 4.4 4.4 Source: http://traffic.seoul.go.kr/archives/289

Environment Korea has been concerned with the issue of yellow dust and particulate matter in the air significantly degrading the quality of life and limiting outdoor activities. Among OECD countries, Korea is ranked 4th in terms of micro particles emissions, and the high density of population in Korea exposes more people to carcinogenic micro particles than any other member nations of the OECD. The World Health Organization considers air unsafe when average exposure to fine particulate matter exceeds 10 micrograms/m3. A third of people exposed to poor air quality (1.3 billion) live in the East Asia and Pacific region, where in China and South Korea more than 50 percent of their populations are exposed to unsafe levels of fine particulate matter.1 In an effort to improve the air quality in populated areas, the Ministry of Environment has revealed its plans to initiate emergency measures to limit public vehicle use. City Context Goyang is located northwest of Seoul, in Gyeonggi-do (Gyeonggi Province). Along with 8 other cities, including Incheon, Goyang is one of the satellite cities which surround Seoul as part of the Metropolitan Seoul area. Goyang is adjacent to Seoul city to its Southeast, and the Han River flows along its Southwest border. Without traffic, it takes about 40 minutes by car to travel from city center of Goyang to downtown Seoul, and buses and trains to downtown Seoul takes about an hour. Figure 7: Map of Goyang in Metropolitan Seoul

1 2016 Environment Performance Index Full Report

Source: Google Maps Geography and land use Goyang was first developed in the mid 90's, as a planned city to accommodate the ever-growing population in Seoul. Planned and functioning as a 'bed-town', Goyang is home to many who commute to Seoul for work and education. Goyang’s area is 268.05km2 and it is divided into three districts—Ilsan Seo-gu, Ilsan Dong-gu, and Deokyang-gu. Within its border, 1,036,621 residents inhabit, mainly in the southwestern half of the city, where residential development first started. The eastern region of the city is quite mountainous and thus harder to develop into residential areas. Also, Goyang still retains much of its greenbelts, designed to control the urban sprawl of Seoul metro area. Starting from its most west region, farming land and industrial warehouses line up along the Han river. Residential buildings, mostly high-rises, are concentrated and are built along the metro line. For a Korean city, Goyang is very green, as plenty of parks were put into place between large apartment complexes when the city was designed, and the Lake Park is a destination for outdoor activities for many as well as the annual flower convention. Figure 8: Terrain of Goyang Source: Google Maps

Economy The main industry in Goyang prior to the real estate development had been rice and dairy farming. During the 90’s many furniture factories and warehouses had also moved into the city as they were pushed out by rising real estate prices in Seoul, however most of them have moved out to other surrounding cities now as prices rose in Goyang as well. While restrictions against development lessened to accommodate the demand for housing in the city, much of the city is still under strict regulations against industrial development. Apart from the retail industry accommodating the residents, Goyang’s main industry remains to be focused on farming, especially of flowers for export. Recently, Goyang city has been put in efforts to accommodate more conventions and media corporations to boost its economy, which increased travel demand to and out of the city. The city government of Goyang is run by a mayor and the city council, elected every four years.

Figure 9: View of Goyang by the Lake Park

Source: Gyeonggi Global News

Road structure of Goyang Goyang has 4 main arterial roads which all lead to Seoul. Joongangro is the main street that runs through Goyang city and leads to Seoul. Most BRT stations are located on this road and the middle lane of the road is exclusively reserved for buses. Most residential areas first developed along this main street and those who live near this street have a relatively easy access to public transportation to Seoul. Jayuro (express way 77) is a freeway of 5 lanes per side and is the most used by commuters who travel by car to Seoul, as it directly connects to the Riverside Highway that cuts through Seoul. Due to the increase in congestion in Jayuro, the Gyeonggi Province government built Je 2-Jayuro, running mostly parallel to Jayuro through Goyang. Lastly, a big portion of the Seoul Ring Express way runs through Goyang. The Seoul Ring Expressway is a beltway which runs through the satellite cities surrounding Seoul. For residents of Goyang, this road is a convenient way to travel to other satellite cities nearby, such as Uijeongbu or Gimpo, as well as northern regions of Seoul.

Figure 10: Arterial Roads of Goyang

Source: Google Maps

Public transportation The bus system is the predominant public transportation method in Goyang. The buses which operate within the city are run by private companies licensed by Goyang or Paju city governments, while M- buses (express buses to Seoul) are licensed by Goyang or Seoul city governments. Most buses bound for Northern Seoul operate on Joongangro, which has bus-only lanes and connects directly to Susaekro in Seoul, also equipped with bus-only lanes. Also, local bus routes (Maeul-bus) operate throughout the city, connecting passengers in the last-mile to metro or BRT bus stops.

Figure 11: Bus stop at a bus-only lane on Joongangro

Source: Chosun Ilbo

In 2012, the Goyang Bus Terminal opened to accommodate demand for express buses for travelling to cities outside the Seoul metro area. The terminal itself if run by KD Transport, a private transport company, and users can access most major bus companies’ routes from this terminal.

The metro system in Goyang is supported by the line 3 of Seoul Metro system and the Gyeongui line. The line 3, operated jointly by Korail and Seoul Metro, was the first public transportation system in Goyang. However, ridership is limited due to its notorious detour on the route into Seoul, which makes Line 3 inconvenient and inefficient for passengers. The Gyeongui line was originally built as a heavy weight train track traversing through the Korean peninsula vertically, running from Sinuiju in North Korea to Seoul. In 1999, the Gyeongui line was renovated to serve as a high-capacity commuter train. Today it connects Goyang directly to major transfer stops in Seoul, serving as one of the most efficient methods to get to downtown Seoul as well as Gangnam area.

Taxis operating in Goyang are licensed by the city government. While passengers from other cities can take a taxi licensed in that city to Goyang, the taxis cannot pick up passengers within Goyang city limits. In the past, such limitation often caused conflict between taxi drivers but the conflict is decreasing significantly as more users contact drivers directly through smartphone apps or call services.

As an effort to encourage more non-motorized transport, Goyang has also implemented its public bicycle rental system, Fifteen. To use the bicycles, residents can easily register on its website, purchase a pre-paid card in local convenience stores, or use their mobile phone to rent a bicycle at the Fifteen Parks. Throughout the city there are 140 Fifteen Parks, providing easy access to users who need it for the last-mile connection to public transportation as well as for recreational use. Along with the bicycle rental program, the abundance in parks and pedestrian-friendly land use encourages much more non-motorized transport compared to other cities in Korea.

Figure 12: A Fifteen Park in Goyang

Source: gyinews

Challenges and limitations While Goyang has come a long way in modernizing public transportation and increasing road capacity since the 90’s, the city still faces challenges in meeting the ever-rising demand.

Limitations in connectivity

While Goyang’s public transportation has greatly improved in the past decade with the launch of BRT system and the modernization of the train system, the city is now experiencing new challenges due to the urban sprawl where new communities are being built in traditionally less developed areas. Residents in these areas experience inconvenience due to lack of feeder system into the main public transportation into Seoul. In addition, Paju City is also growing in population rapidly and main roads of Goyang is overburdened by Paju City residents who go through Goyang in their commute to and from Seoul. As of 2010, commutes from Goyang into Seoul recorded 11% of all commutes into Seoul in the metropolitan Seoul region, second only after Seongnam, at 12%. Also, the Gyeongui line metro is also a convenient method to reach many parts of Seoul from Goyang. However, there are limitations. For instance, those who live in the newly developed areas far from Joongangro voice out their concerns over the lack of feeder system to reach public transportation systems that will carry them to Seoul. Also, passengers of the Gyeongui line often complain of the infrequent schedule—especially that the train to Seoul station is available only once every hour for most of the day.

Congestion and Road Capacity Despite the numerous routes to reach Seoul from Goyang, the road capacity is still insufficient in satisfying the demand during rush hour. In the worst times reaching downtown Seoul (Jung-gu, City Hall area) can take up to an hour and a half, although without traffic the drive should take about 40 minutes. If one is to drive during rush hour from Goyang to Gangnam, one of the biggest business centers in Seoul, the trip can take anywhere between an hour to two and a half hours.

Environment

With the increase in congestion and the use of personal vehicles, Goyang is also seeing a rise in the greenhouse gases as well as particulate matter. PM is an issue of concern for Goyang, as it has a high ratio of young children and senior citizens who are especially vulnerable to its adverse effects.

Figure 13: Average PM10 emissions

Average PM10 Emissions

90 80 70 60 50 40 30 20 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Gyeonggi Province average Madu Station, Goyang City

Source: Air Gyeonggi-Do (http://air.gg.go.kr/airgg/air_trend/)