Gwangju 2nd Beltway Section 1


The first PPI project in Gwangju, the fifth largest metropolitan city of Korea

Nature of the asset

Gwangju Second Beltway, Section 1 is a 5.6 km, dual three-lane expressway consisting of four tunnels, ten bridges and two interchanges, running from the Gwangju Dooam Interchange to the Sotae Interchange outside the city of Gwangju with tolling at two separate locations. In response to the expansion and development of industrial areas around Gwangju, construction of the Gwangju Second Beltway commenced in 1997 to ease traffic congestion on the Gwangju First Beltway and to provide better links to the surrounding cities. Construction of Gwangju Second Beltway Section 1 began in June 1997 and was completed in December 2000.

Investment details

MKIF has invested in Kwangju Beltway Investment Co., Ltd. (KBICL), the concessionaire of Gwangju Second Beltway, Section 1, in the form of equity, senior loans, subordinated loans, and working capital facility. As of record date, MKIF is a 100.0% shareholder of KBICL, and has committed to provide senior loans of KRW 104.3 billion, subordinated loans of KRW 82.0 billion, and a working capital facility of KRW 3.2 billion. MKIF's total invested capital in KBICL is KRW 222.6 billion.

Concession agreement

Concession agreement
Government authority: Gwangju Metropolitan City
Concession term: 28 years
Guarantee duration: N/A (investment cost compensation)
Concession term commencement: January 2001
Minimum Guarantee: N/A (investment cost compensation)
Revenue Cap: N/A (investment cost compensation)

* As part of the capital restructuring transaction completed in December 2016, the Minimum revenue guarantee provision was replaced with the Investment cost compensation provision. Please refer to MKIF disclosure on 16 December 2016.


Length: 5.6 km
Capacity: 6 lanes in both directions