"Seoul~Yangpyeong Expressway Alternative Route 14% More Economical Than Original Plan"

Ministry of Land, Infrastructure and Transport Conducts Economic Feasibility Analysis Ahead of National Assembly Audit
Third-Party Verification Promoted to Ensure Fairness

Government analysis has revealed that the economic feasibility of an alternative route for the Seoul~Yangpyeong Expressway project, which was halted due to preferential treatment controversies involving First Lady Kim Geon-hee's family, is higher than that of the original route that passed the preliminary feasibility study.

The area around Yangseo-myeon, Yangpyeong-gun, Gyeonggi Province, the original route terminus of the Seoul~Yangpyeong Expressway (above), and the area around Gangsang-myeon, the alternative route terminus. / Photo by Yonhap News

On the 5th, the Ministry of Land, Infrastructure and Transport announced that the benefit-cost ratio (B/C) of the alternative route for the Seoul~Yangpyeong Expressway project was 0.83, which is 13.7% (0.1) higher than the original route’s 0.73. Although adopting the alternative route terminating at 'Gangsang-myeon' would increase project costs by 2.9% (approximately 60 billion KRW) compared to the original route terminating at 'Yangseo-myeon,' daily traffic volume is expected to increase by 22.5% (about 6,000 vehicles), thereby enhancing economic feasibility.

Economic feasibility compares benefits (B), such as reduced travel time, against costs (C), including project expenses. Generally, a B/C ratio above 1.0 indicates project viability. Even if the B/C ratio does not exceed 1.0, a comprehensive evaluation (AHP) considering economic feasibility and regional balanced development effects deems a project viable if the score exceeds 0.5.

B/C analysis is typically conducted at the completion of the feasibility study, after strategic environmental impact assessments and consultations with related agencies, when the optimal alternative route is finalized. Therefore, conducting a B/C analysis for the Seoul~Yangpyeong Expressway project, which has not yet finalized its route, is premature. However, due to ongoing demands in the National Assembly, the Ministry resumed the second phase of the feasibility study and performed the B/C analysis, the ministry explained.

Previously, the B/C ratio for the original route was 0.82 when it passed the preliminary feasibility study in 2021. The Ministry did not use this figure in comparing the B/C ratios of the alternative and original routes. Instead, they standardized the evaluation by unifying the starting section of both routes at the Gamil Junction (JCT) on the Metropolitan Area 1st Ring Expressway.

As a result, the project cost was estimated at 2.1098 trillion KRW for the alternative route and 2.0498 trillion KRW for the original route, showing a small increase. Meanwhile, daily traffic volume was predicted to be over 20% higher for the alternative route at 33,113 vehicles compared to 27,035 vehicles for the original route.

A Ministry official explained, "Moving the terminus reduces travel time to Seoul, which increases traffic demand between the Jungbu Inland Expressway and Seoul." The official added, "Even when analyzing B/C by aligning the starting section with the original route and varying the terminus, the alternative route (0.89) showed a higher B/C than the original route (0.81)."

The Ministry plans to submit the economic feasibility analysis results to the National Assembly and request third-party verification to ensure fairness and objectivity, as the company that conducted the B/C analysis also proposed changing the terminus to the alternative route.

Meanwhile, Minister of Land, Infrastructure and Transport Won Hee-ryong declared the project canceled in July amid escalating preferential treatment allegations. Although the direction shifted back toward resuming the project, it remains difficult without solid justification. Regarding this, a Ministry official said, "The project will continue once the controversy is resolved," but added, "It is difficult to comment on matters following the B/C analysis."

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