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
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.
MKIF has invested in Seoul-Chuncheon Highway Co., Ltd. (“SCH”), the concessionaire of Seoul-Chuncheon Highway, in the form of equity and subordinated loan. As of the record date, MKIF has 15% equity interest in SCH, and MKIF’s total investment amount is KRW 136.0 billion, which is comprised of equity of KRW 48.6 billion and subordinated loan of KRW 87.4 billion.
|Government authority:||Ministry of Land, Infrastructure and Transport|
|Concession term:||30 years|
|Guarantee duration:||15 years|
|Concession term commencement:||July 2009|
|Minimum Guarantee*:||70%, 60% of annual CA projected revenue|
|Revenue Cap*:||130%, 140% of annual CA projected revenue|
* To change over a 5-year period
* No revenue guarantee applies if actual revenue is below 50% of the annual concession agreement projected revenue
* 70% / 130% until August 2019, and 60% / 140% from thereon to 2024
|Capacity:||Dual two to three-lane in both directions|