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Construction Halt Impeding Local Long-awaited Projects
The construction project for the highway from Busan Huam to Yangsan and the opening of Huam Bridge have been halted again, further intensifying citizen inconvenience.
Originally scheduled for completion in July 2025, the actual completion date has become uncertain due to various design issues, administrative delays, and unpaid wages.
In this context, the management crisis faced by the construction company, Bumyang Construction, and the denial of audit opinions are significant contributing factors.
Background of Construction Delays and Recurring Problems
The construction of the access road to Huam Bridge is a project to connect Gangbyeon-daero and Geumgok-daero to reduce traffic congestion. This project began design in 2016 and officially commenced construction in 2022.
However, construction has been delayed due to various issues. The failure to perform a small-scale disaster impact assessment delayed progress by 9 months, and the delay in the relocation of Korea Electric Power Corporation (KEPCO) poles caused a halt for 8 months. Additionally, issues such as improper reflection of obstacles and poor schedule management have led to prolonged delays in the construction.
Currently, the construction has been completely halted due to unpaid wages between the construction company and subcontractors. This has resulted in an additional budget requirement of approximately 1.6 billion won, and concerns about greater tax waste if the construction period is extended in the future.
Bumyang Construction's Management Crisis and Delisting Risk
The primary cause of this incident is the management weakness of Bumyang Construction, the contractor. The company received a 'denial of audit opinion' in an audit conducted in April 2025, leading to the suspension of stock trading on the KOSPI market. This initiated the delisting process, and Bumyang Construction is facing a severe liquidity crisis.
A low-bidding issue arose as the contract was awarded at a significantly lower price of 14.7 billion won than the anticipated costs. This has resulted in delayed payments to subcontractors due to cash shortages, causing losses amounting to billions of won for over 100 workers and equipment suppliers.
Citizen Inconvenience and Busan City's Response
Residents of the Huam and Geumgok areas have been experiencing long-term inconveniences due to the halt in construction, which has worsened traffic congestion in the region.
The Busan City Construction Headquarters announced plans to select a new construction company and resume construction by November 2025. Alongside this, they have introduced some direct payment systems to solve the unpaid wage issue, although there are still institutional limitations related to equipment usage fees.
Busan City has expressed its intention to designate Bumyang Construction as an unreliable contractor and impose legal and administrative sanctions, vowing to establish responsible measures to prevent recurrence. However, criticism continues regarding the loss of trust in administration due to the delays in the construction schedule.
Conclusion – Remaining Tasks and Lessons
The delays in the road improvement project connecting Busan Huam and Yangsan, along with the delay in the opening of the Huam Bridge, involve a tangle of low-bid practices, poor management, and the construction company's management difficulties that go beyond mere construction issues. To resolve this, Busan City needs to completely improve the project management system alongside resuming construction.
This incident emphasizes the responsibilities of local governments and contractors, highlighting the need for institutional reinforcement once again. To ensure similar incidents do not recur, transparent administrative operations and thorough risk management are necessary. Such efforts are expected to contribute to providing a better environment for local residents.
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Frequently Asked Questions (FAQ)
Q. What are the main causes of the halt in the Busan Huam - Yangsan road improvement project?
The main causes include Bumyang Construction's management crisis and issues related to unpaid wages.
The halt in the Busan Huam - Yangsan road improvement project is primarily due to the severe management crisis faced by Bumyang Construction, the contractor. The company received a 'denial of audit opinion' in an audit conducted in April 2025, leading to the suspension of stock trading on the KOSPI market and facing delisting risks. The delays in wage payments to subcontractors due to low bidding and cash shortages have halted the construction, causing losses amounting to billions of won for workers and equipment suppliers.
Q. What are the backgrounds of repeated delays and halts in construction?
Issues such as design problems, administrative delays, and delays in KEPCO pole relocation are complex causes.
Construction began in 2022 after starting design in 2016, but faced many administrative and technical issues, including a 9-month halt due to failure to perform a disaster impact assessment, and an 8-month delay due to the relocation of KEPCO poles. Additionally, omissions in obstacle reflection and poor process management have led to continuous delays, culminating in the complete halt of construction due to wage payment issues.
Q. What is the current response plan from Busan City?
They are working on selecting a new construction company and introducing a direct payment system to resolve unpaid wage issues.
The Busan City Construction Headquarters is in the process of legally and administratively sanctioning Bumyang Construction, which has been designated as an unreliable contractor, and aims to resume construction by November 2025 with a new contractor. Although some direct payment systems have been introduced to resolve unpaid wage issues, there are still institutional limitations regarding equipment usage fees. Busan City is committed to ensuring responsible measures to prevent recurrence and improve process management systems to minimize inconvenience for citizens.
Q. What inconveniences are residents experiencing due to the construction halt?
Traffic congestion has worsened, and there has been a significant increase in inconvenience due to prolonged construction halts.
Residents of Huam and Geumgok are experiencing heightened traffic congestion and increased commuting times due to the construction halt. As construction has been significantly delayed beyond the originally planned timeline, they are unable to experience the benefits of the local traffic infrastructure improvements. In response, Busan City is intensifying efforts for urban traffic system enhancements alongside the resumption of construction.
Q. What issues have emerged from this incident and what challenges lie ahead?
The need for enhanced management, transparent administration, and risk management due to low-bidding practices.
This incident is the result of a combination of factors including cash shortages due to low-bidding, management issues at the construction company, poor process management, and administrative delays. Moving forward, local governments and contractors will need to strengthen accountability and pursue institutional reinforcements. Thorough risk management and transparent administrative operations will be essential to prevent similar incidents and provide a stable environment for local residents.