[Practical Finance] Many Variables Like GTX and Resident Opposition Make Actual Opening Still Far Away

Fastest Progress on Line A
July Completion Rate at 19.4%... Falls Short of Target

Line C Faces Residents' Demand for Route Change
Line B Has Yet to Establish Basic Plan

[Asia Economy Reporter Kim Hyemin] The Metropolitan Area Express Train (GTX) is driving up housing prices in the Seoul metropolitan area, but most lines are still far from completion, according to forecasts. While the announcement of project schedules acts as a strong factor boosting nearby housing prices, many variables remain before actual opening, so caution is advised.

According to the Ministry of Land, Infrastructure and Transport and industry sources on the 1st, even the GTX-A line, which is progressing at the fastest pace, is behind its target construction rate. The A line, connecting Paju Unjeong, Ilsan, Seoul Samseong-dong, and Hwaseong Dongtan, had a construction progress rate of 19.4% as of July this year, slower than the government’s target of 22.8%.

The A line began construction in June 2019 with a goal to open by the end of 2023, but there are forecasts that the schedule may be delayed. During construction, the permitting period was delayed due to land compensation issues with residents in Cheongdam-dong, Gangnam-gu, and construction was completely halted after relics were discovered in the Dangju-dong section of Jongno-gu, Seoul, causing unexpected variables. Considering that railway projects typically complete 1 to 2 years later than planned, it is expected to open no earlier than 2024 or 2025.

The GTX-C line, which is progressing at the second fastest pace, has also encountered variables in the form of resident opposition. The C line, connecting Yangju Deokjeong, Seoul Samseong-dong, and Suwon, entered the negotiation phase in June after selecting the Hyundai Construction consortium as the preferred private operator. The Ministry of Land aims to sign an agreement by the end of this year, but the C line’s design passes under the underground of Eunma Apartments in Gangnam-gu, facing strong opposition. Owners and residents of Eunma Apartments are demanding a route change, and if a compromise is not reached, the start of construction may be further delayed.

The GTX-B line, connecting Incheon Songdo, Seoul Yeouido, and Namyangju Maseok, aims to start construction next year but has yet to establish a basic plan. Even if the basic plan is established, procedures such as reviewing the bidding method, basic and detailed design, and project plan approval must be completed. The Ministry aims to start construction next year and open by 2027, but market observers believe this will be difficult given the current progress.

The D line, the Western Metropolitan Express Train connecting Gimpo and Bucheon, is included in the 4th National Railroad Network Construction Plan (2021?2030), making its completion date hard to predict. Furthermore, as the route was finalized to connect only Gimpo Janggi Station and Bucheon Sports Complex Station, strong opposition has arisen from residents demanding a direct connection to Seoul. Considering business feasibility and other factors, it is expected that difficulties will arise in future procedures such as operator selection.

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