The Ministry of Land, Infrastructure and Transport announced that it will hold a briefing session on the "Integrated Development Project for Railway Undergrounding" at 2 p.m. on the 25th in Daejeon for officials from 16 metropolitan local governments nationwide.
The targets of the Integrated Development Project for Railway Undergrounding are the lines of high-speed and conventional railroads designated according to the "Comprehensive Plan for Integrated Development of Railway Undergrounding." The comprehensive plan is a statutory plan that includes the target lines and development scope, and it is scheduled to be established and announced by the Ministry of Land, Infrastructure and Transport by the end of next year after deliberation by the Railway Industry Committee. Local governments (cities and provinces) will prepare the "Basic Plan for Railway Site Development Project" for the lines included in the comprehensive plan, as well as step-by-step project implementation and financing plans.
The costs required for the railway undergrounding project are principally covered by the revenue generated from the development of railway sites and adjacent areas. When the government invests the railway sites, which are national property, the project implementer issues "bonds" based on this to raise funds for the undergrounding project. Subsequently, the costs of the undergrounding project are covered by the development profits from the surface area. However, if funds are insufficient, local governments may provide partial subsidies or loans.
Local governments can also apply special measures (such as relaxation of floor area ratio and building coverage ratio) to secure profitability for the railway site development project and support the installation costs of necessary infrastructure such as roads. Detailed matters will be stipulated in subordinate legislation.
Meanwhile, the Ministry of Land, Infrastructure and Transport is preparing guidelines to facilitate smooth project proposals by local governments during the comprehensive plan establishment process. A briefing session on the draft guidelines will be held in mid-next month, and after reflecting local government opinions, the guidelines will be distributed by the end of the month.
Yoon Jin-hwan, Director of the Railway Bureau at the Ministry of Land, Infrastructure and Transport, said, "This briefing session is the first step to strengthen communication with local governments before establishing the comprehensive plan and to enhance the understanding of local government officials about the project structure and system." He added, "We hope local governments will establish plans that can fundamentally restructure railway sites and nearby areas based on innovative ideas."
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