The development of the third highway linking Gyeonggi Province and Incheon is getting a boost. Gyeonggi Province launched this project with the aim of coping with the increased demand for roadways stemming from the development of the southwestern part of Gyeonggi Province. The province decided to induce private sector investment into this project.

The agreement for the development of the highway was made in 2004, and the purchase costs of the lands on which the highway will be built have increased three-fold to KRW 297.6 billion thus far. The total budget of KRW 106.2 billion, which had been secured for purchasing the lands, was exhausted as of the end of September of this year, resulting in complaints by landowners who called for an exact calculation.

As of the end of September, purchase costs were KRW 50 billion short. KRW 34.5 billion of this amount was money that needed to be paid to landowners who had already sold their lands, and KRW 15 billion was money to be paid for land that will be purchased by the end of this year.

To meet these exact calculations and facilitate the smooth completion of the project, the province made an agreement with the company in charge of construction for an investment of KRW 50 billion in advance. On October 23, the draft for surety obligations regarding the development of the highway was passed, resolving the complaints of landowners and allowing for more rapid construction of the highway, which is currently 12% completed.

This is a win-win situation for all three parties, including the province, the business partner and the landowners.

An official at the province said, “The completion of the highway will enable faster transportation to Incheon International Airport, since the distance will be shortened by 24 kilometers. The highway will also serve to reduce distribution costs.”