Announced during an economic policy meeting at the Government Complex Seoul, the initiative is part of a broader social overhead capital (SOC) strategy. The project will cover railway sections in Busan, Daejeon, and Ansan, with construction expected to begin in approximately three years.
The move comes at a critical time for South Korea’s construction industry, which has been grappling with a prolonged downturn.
The industry’s struggles have already led to financial turmoil among major regional builders. In recent months, Sin Taeyang Construction in Busan, JEIL Engineering & Construction in North Jeolla Province, and Daezer Construction in South Gyeongsang Province have filed for bankruptcy.
In Busan, the government plans to construct an artificial ground spanning approximately 370,000 square meters between Busanjin Station and Busan Station. The project, with an estimated cost of 1.4 trillion won, is expected to free up valuable urban space for development.
A similar effort is planned in Daejeon, where 1.4 trillion won will be allocated to relocating railway switchyards underground, unlocking 380,000 square meters for redevelopment. In Ansan, a 1.5 trillion won project will move tracks beneath the surface between Choji Station and Jungang Station, facilitating the creation of a new urban center.
To further bolster the construction industry, the government intends to frontload 70 percent of its annual social infrastructure budget, injecting 12.5 trillion won into the sector in the first half of 2025.
The Construction Association of Korea welcomed the government’s plan, describing it as “sweet rain in a drought” for an industry struggling with dwindling orders.
The railway initiative is part of a broader economic stimulus package that also includes port regeneration projects in Busan and Incheon, as well as plans for semiconductor industrial complexes in Yongin.
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