Korea Credit Guarantee Fund Provides 700 Billion KRW Guarantee for Daejang?Hongdae Metropolitan Railway Private Investment Project

The Korea Credit Guarantee Fund announced on May 2 that it will provide an industrial infrastructure credit guarantee worth 700 billion KRW for the "Daejang~Hongdae Metropolitan Railway Private Investment Project."

This line will connect Daejang New Town in Bucheon, Gyeonggi Province, Deogeun New Town in Goyang, and Hongdae Ipgu Station on Seoul Subway Line 2, with a total length of 20.1 kilometers. Once the line opens, travel time from Daejang New Town to Hongdae Ipgu Station is expected to be reduced from approximately 60 minutes to 23 minutes.

This guarantee aims to provide railway services to transportation-disadvantaged areas in the southwestern and northwestern parts of the Seoul metropolitan area, thereby improving residents' convenience, supporting new town development, and revitalizing the local economy.

This line will be promoted as the nation's first mixed-type private investment project that combines Build-Transfer-Operate (BTO) and Build-Transfer-Lease (BTL) models. The mixed-type approach applies both operational revenues and rental fees for investment recovery, which is considered to lower the project risk compared to the typical BTO model, where private operators recover their investment solely through operating the project for a certain period.

The Korea Credit Guarantee Fund is also providing consulting services to local governments, competent authorities, and small and medium-sized construction companies promoting regional private investment projects, to help them better understand complex financial structures and related legal matters.

A representative from the Korea Credit Guarantee Fund stated, "As the nation's only policy guarantee institution supporting private investment projects, we will take the lead in balanced national development and improving the quality of life for citizens through timely guarantee support for social infrastructure expansion and customized consulting to ensure the smooth implementation of regional private investment projects."