Soojungsan Tunnel

 

Major tunnel connecting Busan port to the central business district of Busan, the second largest city in Korea

Soojungsan Tunnel is a 2.3 km, dual two-lane tolled tunnel located in Busan, serving as an important connection from Busan central business district to Busan port and the northwestern residential region, including Gimhae International Airport. Construction of Soojungsan Tunnel commenced in May 1997 and was completed in December 2001.

Investment details

MKIF has invested in Soojungsan Investment Co., Ltd. (“SICL”), the concessionaire of Soojungsan Tunnel, in the form of equity, senior loan and subordinated loan. As of the record date, MKIF is a 100.0% shareholder of SICL, and MKIF’s total investment amount is KRW 55.5 billion, which is comprised of equity of KRW 47.1 billion, senior loan of KRW 3.5 billion, and subordinated loan of KRW 4.9 billion.

Concession agreement

Concession agreement
Government authority: Busan Metropolitan City
Concession term: 25 years
Guarantee duration: 25 years
Concession term commencement: April 2002
Minimum Guarantee*: 90% of annual CA projected revenue
Revenue Cap: 110% of annual CA projected revenue

* For toll revenue below 90%, Busan Metropolitan City is obligated to compensate 91.5% of the shortfall amount

Facilities

Facilities
Length: 2.3 km
Capacity: Dual two-lane in both directions