Yongin to Establish 1 Trillion Won Railway Fund by 2030..."Completing Semiconductor City"

Yongin Special City (Mayor Lee Sang-il) will establish a railway fund of up to 1 trillion won by 2030 to secure financial resources needed for large-scale railway projects including the Gyeonggi Southern Metropolitan Railway, the new Dongbaek~Shinbong Line, and the extension of the Gyeonggang Line.

The city has begun administrative procedures to implement the railway fund creation, a pledge of Mayor Lee Sang-il of the ninth civil election, and announced on the 15th that it has established a related basic plan. The city plans to secure a fund of 500 billion to 1 trillion won by utilizing increases in local tax revenues resulting from semiconductor industry growth.

Based on the basic plan, the city will enact an ordinance titled "Ordinance on the Establishment and Operation of Yongin City Railway Fund (tentative name)," and after undergoing relevant procedures including deliberation and vote by the city council, plans to begin accumulating the fund starting in 2027.

The city believes that expansion of railway networks to support smooth movement of talent and logistics is essential for successful implementation of Yongin's large-scale semiconductor project, and has decided to establish a railway fund to enable timely investment of related financial resources.

The railway fund will be secured through increases in local tax revenues expected to result from the operation of the Yongin semiconductor cluster and interest income from fund operations.

Beginning in 2027, the city plans to phased secure financial resources, starting with the promotion of fund accumulation of 70 billion to 150 billion won through supplementary budget plans. Thereafter, comprehensively considering trends in local tax revenue increases and the city's financial situation, the city will flexibly adjust the annual accumulation scale while establishing a railway fund of 500 billion to 1 trillion won by 2030.

The established fund will be invested in major metropolitan and urban railway projects such as the Gyeonggi Southern Metropolitan Railway and Dongbaek~Shinbong Line, and will also be utilized for mid to long-term railway financial needs including replacement and improvement of aging Yongin Light Rail Transit vehicles and railway systems.

The amount of municipal budget burden for future railway projects currently estimated by the city reaches approximately 1 trillion 945 billion won.

For currently underway railway projects such as the double-track electrified railway between Indeokwon and Dongtan and the metropolitan express railway between Samsung and Dongtan, 174.3 billion won is needed; for new metropolitan and urban railway projects, 1 trillion 189.9 billion won; and for replacement of Yongin Light Rail Transit aging vehicles and railway systems, 580.8 billion won is expected to be needed. The actual amount of burden may vary depending on future project implementation status and resource allocation ratios.

Mayor Lee Sang-il said, "For Yongin's mega-scale semiconductor project to succeed, it is important to enhance transportation convenience for semiconductor industry workers and citizens and to build a railway network that allows logistics to flow smoothly in a timely manner. We will establish a railway fund to ensure financial basis so that major railway projects such as the Gyeonggi Southern Metropolitan Railway, the new Dongbaek~Shinbong Line, and the extension of the Gyeonggang Line can be promoted in a timely manner."