GTX-C construction cost increase approved; Bujeon-Masan line to open in stages

The government will revise the implementation agreement for the GTX-C metropolitan express rail line to reflect a construction cost increase, clearing the way for a swift ground-breaking. The long-delayed Bujeon-Masan line will pursue a phased opening, starting with sections where construction has already been completed.

The Ministry of Planning and Budget said Tuesday that Vice Minister Jo Yong-beom chaired the fifth Private Investment Project Review Committee of 2026, at which members deliberated and approved four project proposals — including GTX-C and the Bujeon-Masan line — along with a revision to the basic plan for private investment projects.

The committee first approved an amendment to the GTX-C implementation agreement. GTX-C is a metropolitan express rail project linking Deokjeong in Yangju, Gyeonggi Province, to Suwon over 86.6 kilometers, with 14 stations. The total project cost stands at 4.93 trillion won ($3.57 billion) in constant 2019 prices, and the project is being developed under a build-transfer-operate model.

The revised agreement reflects a construction cost increase stemming from an arbitration ruling issued by the Korean Commercial Arbitration Board on April 1.

The government said it expects the approval to support a prompt ground-breaking for GTX-C and help cut commute times for Greater Seoul residents. Once the line opens, travel time between Deokjeong and Samsung station is expected to fall from about 80 minutes to around 30 minutes.

The committee also approved a revised implementation agreement for the Bujeon-Masan line, whose opening has been delayed for years. The line is a build-transfer-lease project connecting Bujeon Station in Busan to Jinrye in Gimhae over 32.7 kilometers, with a total project cost of 1.22 trillion won in constant 2008 prices.

The revision lays out a plan to resolve the opening delays that have persisted since the collapse of the Nakdong No. 1 tunnel in March 2020, and to partially open the completed Masan-Gangseo Geumho and Sasang-Bujeon segments.

Once fully open, the route will be straightened, eliminating the existing detour through Samnangjin and cutting travel time between Bujeon and Masan from about 90 minutes to around 40 minutes. The government said it expects the line to shorten commutes for residents of South Gyeongsang Province and Busan, and to help integrate the southeastern region into a single living zone.

In the environmental sector, the committee approved a streamlined feasibility review process for the Sokcho sewage treatment facility modernization project. The build-transfer-operate-ancillary project will construct a new sewage treatment facility with a daily capacity of 56,000 cubic meters in the Daepo-dong area of Sokcho, Gangwon Province. Under the decision, economic and policy analyses will be skipped, and only an assessment of whether private investment is preferable to public financing will be required, which is expected to accelerate the project.

For the Yongin Green Eco Park, the committee approved the project's designation as a private investment project and the issuance of a third-party proposal notice. The build-transfer-operate-ancillary project will develop a resource recovery facility with a daily capacity of 500 tons and a household resource recovery center with a capacity of 150 tons in the Cheoin-gu area of Yongin, Gyeonggi Province. The waste intake area for the incineration facility will be placed below ground, with a park and mixed-use cultural facility built on top.

The committee also approved a revision to the basic plan for private investment projects aimed at promoting publicly subscribed infrastructure funds. The revision exempts projects from profit-sharing requirements when private investment funds are refinanced through publicly subscribed infrastructure funds.

The fund structure was introduced through the "Private Investment Revitalization Plan" announced in February last year, designed to allow ordinary citizens to invest in private infrastructure projects without bearing risk. The government said it will continue working with relevant agencies to launch the first fund before the end of this year.

The funds will be raised through public subscriptions from ordinary citizens, then deployed through senior loans and similar instruments, with returns distributed to investors. The minimum fundraising threshold is 5 percent of total private investment costs, and individual investment is capped at 100 million won per person. Maturities will be set at three to five years depending on the nature of each project. Eligible projects include build-transfer-operate, build-transfer-lease, and hybrid schemes with total private investment costs of at least 200 billion won.

"Today's committee approvals are expected to bring significant improvements to public transport infrastructure, including the ground-breaking of GTX-C and the resolution of the long-delayed opening of the Bujeon-Masan line," Vice Minister Jo said. "The ministry will continue to make active efforts to advance private investment projects swiftly, including by convening the review committee on an as-needed basis."

Jo also urged relevant agencies to actively identify projects eligible for publicly subscribed infrastructure funds, so that citizens can directly benefit from the returns and profits generated by private investment projects.