Seoul-Chuncheon Expressway
An alternative link from Seoul to the East Coast area of Korea, relieving the heavy traffic congestion in east Seoul and providing a direct route to Chuncheon, the Gangwon Province area
Nature of the asset
Seoul-Chuncheon Expressway is a 61.4 km, dual two to three-lane toll expressway providing a link between Seoul and Gangwon Province, known as a capital of tourism in Korea. The expressway provides an alternative link between the east part of Seoul and Chuncheon through Kyunggi province, where the regional expressways and highways experience heavy congestion, especially on weekends. Construction began in August 2004, and was successfully completed in July 2009.
Nature of the investment
MKIF has invested in Seoul Chuncheon Highway Co., Ltd., 15% of the equity (KRW 48.6 billion) and 50% of the subordinated loan (KRW 87.4 billion), making total investment of 136.0 billion.
Concession agreement
| Concession agreement | |
|---|---|
| Government authority: | Ministry of Land, Transport and Maritime Affairs |
| Concession term: | 30 years |
| Guarantee duration: | 15 years |
| Concession term commencement: | July 2009 |
| Minimum Guarantee*: | 80%, 70%, 60% of annual CA projected revenue |
| Revenue Cap+: | 120%, 130%, 140% of annual CA projected revenue |
* Change over a five-year period subject to actual toll revenue being no less than 50% of annual CA projected revenue
+ Change over a five-year period
Facilities
| Facilities | |
|---|---|
| Length: | 61.4 km |
| Capacity: | Dual two to three-lane in both directions |
| Toll rate: | KRW 6,300 – Small vehicles |
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