The financial debt of the Korea Expressway Corporation has increased by over 10 trillion won in four years, raising concerns that the company is bearing the full cost of the government's toll reduction policy. As interest burdens grow, worries about insufficient safety investments in aging road infrastructure have also emerged.
During a National Assembly audit on October 8, Rep. Heo Young of the Democratic Party reported that the corporation's financial debt rose from 31 trillion won in 2021 to 41.4 trillion won last year. It is projected that the debt ratio will reach 108.8% by 2030.
Last year, the corporation repaid 56 trillion won in principal and interest, but cash generated from operations was only 13 trillion won, covering just 24% of the debt service. In the same year, new bond issuances amounted to 73.6 trillion won.
Rep. Heo attributed the increase in debt to the government's toll reduction policies and the structure of construction cost sharing. Over the past five years, the total amount of toll reductions due to exemptions during holidays and discounts for small cars, disabled individuals, and eco-friendly vehicles reached 21.83 trillion won, with no compensation from the government.
As financial burdens increase, the maintenance budget for aging facilities has also come under scrutiny. Last year, the corporation's interest expenses totaled 12.052 trillion won, while only 611 billion won was allocated for the repair and reinforcement of bridges and tunnels over 30 years old.
Rep. Heo stated that approximately 11.75 trillion won will be needed for maintenance of aging facilities by 2035, but the current budget estimate stands at only 8.8 trillion won, urging for better funding. He also pointed out that 35 facilities rated as C for maintenance have yet to begin construction. In response, Yoo Jeong-hoon, the president of the Korea Expressway Corporation, agreed on the need to strengthen maintenance management.
The necessity of adjusting tolls for highways where construction costs have already been recouped was also raised. According to Rep. Heo, the Gyeongin Line has recovered 2.8 times its construction costs, the Ulsan Line 2.5 times, the Honam Line 2.2 times, and the Gyeongbu Line 1.7 times. The total construction investment for these routes is about 97 trillion won, while the recovery amount exceeds 174.2 trillion won.
Rep. Heo proposed a differentiated toll system based on the recovery rate of investment for each route. President Yoo stated that this proposal requires consideration as it represents a new approach, distinct from the existing integrated revenue system.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.