Kumho Engineering & Construction Selected as Preferred Negotiation Partner for 'Pyeongtaek-Siheung Expressway Expansion Private Investment Project'

First Implementation of Improvement-Operation Type Private Investment Project
Total Project Cost Estimated at 690 Billion Won

Kumho Engineering & Construction announced on December 19 that it has been selected as the preferred negotiation partner after participating as the lead construction company in a consortium led by Kiwoom Asset Management for the 'Pyeongtaek-Siheung Expressway Expansion Private Investment Project' promoted by the Ministry of Land, Infrastructure and Transport.

This project marks the first application of the government's 'Improvement-Operation Type Private Investment Project' system. Under this system, private operators improve or expand existing social overhead capital (SOC) infrastructure and then recoup their investment by operating the entire facility, including the improved section.

Kumho Engineering & Construction will play a key role in the consortium, leveraging its accumulated expertise in project planning and construction experience in the private expressway development sector. The total project cost is approximately 690 billion won, with Kumho Engineering & Construction serving as the lead contractor.

The expansion project will be carried out on the existing Pyeongtaek-Siheung Expressway, which has suffered from chronic traffic congestion since its opening in 2013. By utilizing the existing operational route instead of creating a new one, the project is expected to reduce new land compensation and environmental burdens while improving traffic efficiency.

The Pyeongtaek-Siheung Expressway, currently operated as a four-lane road, will be expanded to six to eight lanes through this project. The section from Seopyeongtaek Junction to Mado Junction will be expanded to six lanes, and from Mado Junction to Namanan Junction, it will be expanded to eight lanes. The total construction period is expected to be 60 months.

Upon completion, the project is expected to alleviate bottlenecks along major transportation corridors in the southwestern metropolitan area and accommodate the increasing industrial and logistics demand in the region. After opening, the private operator will manage and operate both the existing and expanded sections for 27 years.

A Kumho Engineering & Construction official stated, "The Pyeongtaek-Siheung Expressway expansion project is highly symbolic as the first improvement-operation type private expressway project in Korea," adding, "We will successfully execute this project, lead the establishment of the improvement-operation type private investment model, and contribute to the expansion of similar projects."