Table of Contents
Re-announcement of the Public Opinion Collection on the Approval of the Implementation Plan and Project Recognition for the Seonghak Tunnel Private Investment Project
Busan Metropolitan City has re-announced the collection of residents' opinions regarding the Seonghak Tunnel private investment project through Announcement No. 2025-1971 on June 11. Consequently, this project has effectively entered its final stage.
The city is conducting a process to simultaneously handle the designation of the road area and project recognition. Once the collection of opinions is completed, the city plans to obtain final approval after consultation with the Ministry of Land, Infrastructure, and Transport and deliberation by related departments.
The Seonghak Tunnel is a 7.69km long, four-lane expressway connecting Eomgung-dong, Sasang-gu, and Jungang-dong, Jung-gu. The project is expected to require approximately 500 billion won for the total project cost and 622.5 billion won for the total investment. The construction period is projected to be 60 months from the start date, with an operational period of 30 years. For passenger vehicles, the toll is set at 1,500 won.
This road is designed as a bypass for the chronic traffic congestion area in downtown Busan and is expected to effectively accommodate the traffic demand generated by Eco Delta City, Gadeokdo New Airport, and North Port redevelopment. The establishment of such infrastructure will greatly contribute to solving Busan's traffic issues.
The West Busan Urban Expressway Co., Ltd. has formed a consortium of 11 companies, including Hyundai Engineering & Construction as the lead manager. On June 1, 2023, they signed an implementation agreement with Busan City to finalize the conditions for the project, tolls, and risk-sharing structure. Immediately after signing the agreement, they will commence detailed design work.
Once the approval declaration is completed, Busan City plans to promptly complete adjustments to the detailed design and various licensing procedures, aiming to begin construction. According to this plan, if administrative procedures proceed smoothly, construction is expected to begin within this year.
The construction period is expected to be approximately 60 months, thus targeting completion in 2030. Additionally, the city plans to carry out land compensation procedures in phases to minimize project delays, aiming to complete all preparations by the end of 2024.
Once the Seonghak Tunnel is opened, the travel time between the old city and the western Busan area will be significantly reduced. Additionally, as logistics and tourist routes are streamlined, costs associated with traffic congestion are expected to decrease.
In particular, the optimal transportation network connecting the North Port redevelopment, Eco Delta City, and Gadeokdo New Airport is expected to contribute to regional balanced development and strengthening of the metropolitan logistics network. It is anticipated that it will take 15 minutes to reach the The Hyundai Outlet in Eco Delta City from downtown Busan during off-peak hours.
Busan Metropolitan City Announcement No. 2025-1971
Re-announcement of the Public Opinion Collection on the Approval of the Implementation Plan and Project Recognition for the Seonghak Tunnel Private Investment Project
Concerning the “Seonghak Tunnel Private Investment Project,” in accordance with Article 15 (Approval or Change of the Implementation Plan, etc.), Article 25 (Designation of Road Area), Article 26 (Collection of Opinions from Residents, etc.), Article 28 (Temporary Road Area), Article 45 (Protection Areas for Roads), Article 48 (Designation of Automobile-Only Roads) of the Act on Private Investment in Infrastructure, Article 24 (Designation of Road Area, etc.), Article 25 (Collection of Opinions from Residents, etc.), Article 27 (Consultation Matters When Designating Temporary Road Areas), Article 21 (Consultation and Collection of Opinions, etc.) of the Law on Acquisition and Compensation for Land for Public Projects, and Article 11 (Public Inspection, etc.) of the same Act, we seek to collect opinions from residents and stakeholders regarding the approval of the implementation plan, designation of road area, and project recognition. We ask those with an interest to submit their opinions within the inspection period.
June 11, 2025
Mayor of Busan Metropolitan City
1. Project Name: Seonghak Tunnel Private Investment Project
2. Project Overview
a. Location: Eomgung-dong, Sasang-gu, Busan Metropolitan City (Eomgung Bridge) ~ Jungang-dong, Jung-gu, Busan Metropolitan City (Jungang-daero)
b. Scale: Length L=7.69km, four-lane round trip, automobile-only road
c. Total Project Cost: 500 billion won (based on 2016.03.01 constant price)
d. Total investment: 622.5 billion won
e. Construction period: 60 months from the date of commencement
f. Operation period: 30 years from the start of operation
3. Project Implementer and Investor
a. Corporate Name: West Busan Urban Expressway Co., Ltd.
b. CEO: Baek Sang-hyun
c. Address: 75 Yulgok-ro, Jongno-gu, Seoul (Gye-dong, Hyundai Building)
4. Construction Method
a. The project will be promoted in compliance with relevant laws and regulations such as the Act on Private Investment in Infrastructure, the Basic Construction Industry Act, and the Construction Technology Promotion Act.
b. Implementation based on construction project management services.
5. Necessary Land Acquisition and Utilization Plan
○ In accordance with the implementation agreement and implementation plan, the relevant administrative agency will manage to ensure that necessary land is acquired or used in accordance with the Law on Acquisition and Compensation for Land for Public Projects, allowing the project implementer to use it free of charge.
6. Road Area Designation Record
a. Reason for Road Area Designation
○ To improve mobility by alleviating traffic congestion on major arterial roads in downtown Busan and to respond to future traffic demand due to Eco Delta City, Gadeokdo New Airport, and North Port redevelopment while promoting regional balanced development for Busan, the road area is designated.
b. Contents of Road Area Designation
| Category | Type | Route Number | Route Name | Location | Area (㎡) | Starting Point | Ending Point | Major Passes | Total Length (km) |
| New | Metropolitan City Road | 12 | Jisa~Central (Seonghak Tunnel) | 658 Eomgung-dong, Sasang-gu ~ 15-7 Jungang-dong 4-ga, Jung-gu | 277,513.6 | 658 Eomgung-dong, Sasang-gu | 15-7 Jungang-dong 4-ga, Jung-gu | Eomgung-dong, Sasang-gu, Hadandong, Seo-gu, Seodaeshin-dong, Buyong-dong, Bumin-dong, Bosu-dong, Jungang-dong, Jung-gu | 7.69 |
7. Investors and Ownership Shares (11 Companies)
| Investor | Shareholding | Investor | Shareholding |
| Hyundai Engineering & Construction Co., Ltd. | 4.50% | Hyunseong Construction Co., Ltd. | 0.40% |
| Lotte Engineering & Construction Co., Ltd. | 2.00% | Kyungdong Construction Co., Ltd. | 0.40% |
| Hongwoo Construction Co., Ltd. | 0.60% | Hwangto General Construction Co., Ltd. | 0.35% |
| Youngdong Co., Ltd. | 0.53% | Dongsung Industry Co., Ltd. | 0.27% |
| Dongil Construction Industry Co., Ltd. | 0.50% | (Tentative) KB Seonghak Tunnel Construction Operation Private Special Asset Investment Trust | 90.00% |
| Ji-won Construction Co., Ltd. | 0.45% | | |
※ The name of the investor and the shareholding may change depending on future financial agreements.
Category
Announcement
Agency Type
City
Agency
Busan Metropolitan City
Announcement Number
No. 2025-1971
Title
Re-announcement of the Public Opinion Collection on the Approval of the Implementation Plan and Project Recognition for the Seonghak Tunnel Private Investment Project
Date
2025-06-11
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Frequently Asked Questions (FAQ)
Q. How is the approval process for the Seonghak Tunnel private investment project’s implementation plan conducted?
Busan City will receive final approval after collecting residents' opinions, consulting with the Ministry of Land, Infrastructure, and Transport, and deliberation by related departments.
The Seonghak Tunnel project is currently going through procedures for simultaneous decision on road area designation and project recognition. On June 11, 2025, Busan City issued a re-announcement for collecting residents' opinions.
Q. What are the main scale and characteristics of the Seonghak Tunnel project?
The Seonghak Tunnel is a 7.69 km four-lane, automobile-only road project with a total project cost of 500 billion won.
The Seonghak Tunnel is a 7.69 km long, four-lane automobile-only road connecting Eomgung-dong, Sasang-gu and Jungang-dong, Jung-gu in Busan. The total project cost is approximately 500 billion won, with total investments reaching 622.5 billion won. The construction period is planned for 60 months from the commencement date, and the operation period is 30 years.
Q. What are the expected effects after the opening of the Seonghak Tunnel?
Significant reduction in travel time between the old city and the western Busan area, and reduction in costs due to traffic congestion are expected.
Once the Seonghak Tunnel opens, the travel time between the old city and the western Busan area will greatly decrease. It is designed as the optimal route to accommodate traffic demand arising from the North Port redevelopment, Eco Delta City, and Gadeokdo New Airport, streamlining logistics and tourist routes and reducing congestion costs.
Q. Who is the project implementer, and what is the status of the project?
The project is being implemented by West Busan Urban Expressway Co., Ltd. and is currently in the detailed design phase following the signing of the implementation agreement.
West Busan Urban Expressway Co., Ltd. is a consortium comprising 11 companies led by Hyundai Engineering & Construction. On June 1, 2023, they signed an implementation agreement with Busan City to finalize the project details and tolls. They will immediately begin the detailed design work following the agreement.
Q. What are the anticipated construction schedule and land compensation plans?
The goal is to begin construction within 2025, and land compensation will be carried out in phases by the end of 2024.
Busan City has established plans to complete the detailed design and necessary licensing procedures promptly after the approval declaration, aiming to start construction in 2025. The construction period is expected to be about 60 months, targeting opening in 2030. To minimize delays, the land compensation process is planned to be carried out in phases, with all preparations expected to be completed by the end of 2024.