Uijeongbu Mayor An Byung-yong Proposes Amendment to Urban Railway Law

Uijeongbu Mayor An Byung-yong met with Rep. Cho Jung-sik, chairman of the National Assembly's Land, Infrastructure and Transport Committee, on June 26 to propose amendments to the Urban Railway Law regarding government funding support to alleviate Uijeongbu City's fiscal burden resulting from the construction of the Uijeongbu Light Rail Transit (LRT) under the Private Investment in Social Infrastructure Act.

Currently, Article 22 (Government Support, etc.) of the Urban Railway Law states that 'the government may provide administrative support to alleviate local governments' fiscal burden caused by urban railways constructed according to the Private Investment in Social Infrastructure Act.'

Mayor An requested that the clause be amended to read: 'the government may provide administrative and financial support to alleviate local governments' fiscal burden caused by urban railways constructed according to the Private Investment in Social Infrastructure Act.'

Mayor An explained the justification for the Urban Railway Law amendment by citing systemic loopholes in private investment projects, failures in verification by central government agencies and state-funded research institutes, and local fiscal crisis.

While the government introduced the MRG (Minimum Revenue Guarantee) system and the termination payment system to activate the private investment project system, these measures are causing local governments to face fiscal crises and depriving project operators of incentive to continue operations.

Although private investment projects are pursued through approval by relevant central government agencies and review and verification by state-funded research institutes, even verified demand forecasts show actual demand falling below 20%, resulting in poor verification that has caused local governments' fiscal crises and operational instability.

Basic local governments operating urban railways through private investment projects face severe financial burdens from MRG, termination payments, and transfer discount subsidies. In particular, Uijeongbu City, with only a 30 percent fiscal self-reliance rate, would face an extreme fiscal crisis if required to pay more than 200 billion won in termination payments.

Uijeongbu Mayor An Byung-yong stated, "As local governments' fiscal crises resulting from private investment projects involve considerable government responsibility, and as the President promised during his campaign to find solutions for normalizing the Uijeongbu LRT, I propose that legal grounds be established through prompt amendment of the Urban Railway Law so that government funds can be provided to local governments operating private railways."