YONGIN — The city of Yongin in Gyeonggi Province is setting up a railway fund of up to 1 trillion won ($700 million) to secure stable financing for a major expansion of its rail network.
The city said on the 15th that it plans to accumulate between 500 billion won and 1 trillion won by 2030 to ensure the timely execution of key rail projects, including the Gyeonggi Southern Metropolitan Railway, a new Dongbaek-Sinbong line and an extension of the Gyeonggang Line.
The fund is one of the signature pledges of Mayor Lee Sang-il's current term. The city recently drew up a basic plan for the fund and began the related administrative procedures. It will push for an ordinance governing the establishment and operation of the Yongin railway fund, and will begin accumulating money in earnest after review and approval by the city council.
The city intends to reinvest part of the local tax revenue expected to grow alongside the semiconductor industry into rail infrastructure. Officials expect tax receipts to rise as corporate tenants move in and production expands once the Yongin semiconductor cluster and large-scale projects involving Samsung Electronics (005930.KS) and SK hynix (000660.KS) get fully under way.
The money will come from the increase in local tax revenue and from interest income on the fund. The city plans to set aside 70 billion won to 150 billion won starting with the 2027 supplementary budget. It will then adjust the annual amounts in line with revenue trends and fiscal conditions to reach the target by 2030.
The fund will be used for new metropolitan and urban rail projects and for improvements to existing rail facilities. Beyond new lines such as the Gyeonggi Southern Metropolitan Railway and the Dongbaek-Sinbong line, it will also cover medium- and long-term needs such as replacing aging cars on the Yongin light rail and upgrading rail systems.
The city estimates its own share of spending on future rail projects at about 1.945 trillion won. It projects 174.3 billion won for projects already under way, including the Indeogwon-Dongtan double-track line and the Samseong-Dongtan express railway, 1.1899 trillion won for new metropolitan and urban rail projects, and 580.8 billion won to replace aging light rail cars and systems.
The actual burden could change depending on how the projects proceed and how costs are split between the central and local governments. The city says that by building up the fund in advance it can ease future fiscal pressure and provide its share of funding on time as the projects move forward.
"Expanding the rail network is essential to improve mobility for semiconductor industry workers and residents and to keep logistics flowing smoothly," Mayor Lee said. "We will create the railway fund to build a fiscal foundation so that major rail projects proceed without disruption."
"We will make sure the results of the semiconductor projects translate into a stronger transport network and a better quality of life for residents," he added. "We will prepare to invest part of the growing tax revenue in Yongin's future infrastructure."