Tug of War Between Changwon City and Operators Over Toll Fees on Jigae-Namsan Route

Changwon City Negotiates with Business Operators for Setting Toll Fee at 1,100 Won

[Asia Economy Yeongnam Reporting Headquarters Reporter Park Saeyan] As the private road operator between Jigae and Namsan applied to the city for a toll of 1,512 won, the Changwon City Public Deliberation Committee on June 28th estimated an appropriate toll of 1,100 won, starting a tense tug-of-war between the city and the operator.

According to the Changwon City Public Deliberation on the 5th, the operator was assessed a toll of 1,300 won by applying the Korea Expressway Corporation's project cost.

Changwon City also lowered the toll by 100 won through financial support, citing the obligation to open the road.

Then, by extending the operation period, the final recommended appropriate toll was 1,100 won, which is 1.1 times the financial toll.

The question is whether the operator will accept this.

To reduce the applied 1,512 won to 1,300 won, the most likely method seems to be lowering the high financial interest rate, but if the agreed interest rate is broken and changed to a lower rate, strong opposition from banks and other investors is expected.

According to an operator official, "If the existing agreed interest rate is lowered, opposition and legal disputes from existing investors are expected, and it is true that there are limits to attracting new investors at a lower interest rate."

In response, the city said, "It is natural to lower the high interest rate and refinance the funds," and has been continuously pressuring the operator by forming a practical negotiation team after submitting the recommendation.

At a meeting of practical negotiation officials on the 5th, the new Director of the Safety Construction and Transportation Bureau said, "There should be no passing of toll increases and operator profits onto citizens' burdens, so we ask for the active participation of the operator side."

Meanwhile, it is known that the operator expressed reluctance, stating that while they would cooperate with toll reductions, there are limitations due to capital structure with investors.

This content was produced with the assistance of AI translation services.