Gwangju 2nd Beltway Section 3-1


The main section of the second beltway of Gwangju City connecting the east and west districts

Asset overview

Gwangju Second Beltway, Section 3-1 is a 3.5 km, dual three-lane expressway with two bridges, two tunnels and one interchange, running east to west along the southern edge of Gwangju, Korea’s fifth largest city. Construction commenced in April 2002 and was completed in November 2004. This is the second private infrastructure section of the Gwangju second beltway, and is directly linked to the Gwangju Second Beltway Section 1, which is operated by KBICL, a wholly-owned concession company.

Investment details

MKIF has invested in Kwangju Ring Road Co., Ltd. (“KRRC”), the concessionaire of Gwangju Second Beltway, Section 3-1, in the form of equity and senior loan. As of the record date, MKIF is a 75.0% shareholder of KRRC, and MKIF’s total investment amount is KRW 43.8 billion, which is comprised of equity of KRW 28.9 billion and senior loan of KRW 14.9 billion.

Concession agreement

Concession agreement
Government authority: Gwangju Metropolitan City
Concession term: 30 years
Guarantee duration: 30 years
Concession term commencement: December 2004
Minimum Guarantee: 90% of annual CA projected revenue
Revenue Cap: 110% of annual CA projected revenue


Length: 3.5 km
Capacity: Dual three-lane in both directions