Lee Jae-myung: "National Pension Ignoring High Tolls on Ilsan Bridge, Some Media Taking Wrong Stance"

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Province Governor Lee Jae-myung has made critical remarks toward the National Pension, the sole shareholder of Ilsan Bridge.

Governor Lee opened fire on the National Pension through his SNS on the 27th, stating, "If a public institution managing large-scale funds exploits its superior position to reap exorbitant profits that citizens must bear, this is an unacceptable problem."

He went on to detail the situation of the National Pension operating Ilsan Bridge, saying, "Gyeonggi Province has repeatedly requested refinancing through informal meetings and National Assembly discussions. However, the National Pension has maintained its position of rejecting refinancing based on implementation agreements dating back over 10 years, refused meetings, and is avoiding communication altogether," and he also took aim at some media outlets, saying, "Furthermore, some media outlets do not hesitate to criticize the National Pension, claiming political logic is at work."

The governor stated, "Roads are national infrastructure and clearly public goods. Even if operated by private entities, if unreasonable operations impose excessive burdens on the government and citizens, correction is inevitable. Disappointingly, the National Pension's operation of Ilsan Bridge has lost both rationality and morality. I urge you to respond to Gyeonggi Province's requests at the earliest opportunity and fulfill at least your minimum responsibilities."

The following is the full text of Governor Lee Jae-myung's SNS post.

<National Pension Ignoring High Tolls on Ilsan Bridge, Some Media Taking Wrong Stance>
There is no dispute that the National Pension has an obligation to contribute to the substantiation of pensions through reasonable investment. However, if a public institution managing large-scale funds exploits its superior position to reap exorbitant profits that citizens must bear, this is an unacceptable problem.
Ilsan Bridge is the only toll bridge among 27 bridges crossing the Han River, with tolls per kilometer reaching 13.2 times those of government-financed roads. Vehicles commuting between Seoul and northwestern Gyeonggi regions, including Gimpo, Ilsan, and Paju—areas that essentially form a single living zone—must cross Ilsan Bridge two to three times daily and bear unreasonably high tolls.
The National Pension is both the sole shareholder of Ilsan Bridge Inc. and an investor that provided funding through self-lending. In this unique situation where shareholder and lender roles coincide, the National Pension reaps unfair gains from high-priority debt at high interest rates (8%), making toll adjustment difficult. Since this interest rate is based on 2009 financial agreement standards, adjustment is necessary by current rate standards. Three-year corporate bond rates have continuously declined from 4.7% in 2010 to 2.2% in 2020, so if the borrowing is refinanced, rates significantly lower than 8% are possible.
Beyond priority debt, the subordinated debt approaching 20% is no different from a breach of fiduciary duty in an era of ultra-low interest rates, where corporations deliberately pay higher interest. The ratio of actual traffic to estimated traffic volume is increasing (2009: 58.1% → 2009: 105%), and the toll revenue and minimum revenue guarantee (MRG) already exceed construction costs. With residual book value below 100 billion won, at this rate, by the revenue guarantee period ending in 2038, earnings would be several times the investment amount—a structure yielding unconscionable windfall profits. This is an immoral act of overcharging citizens through toll exploitation by abusing revenue protection provisions.
Gyeonggi Province has repeatedly requested refinancing through informal meetings and National Assembly discussions. However, the National Pension has maintained its position of rejecting refinancing based on implementation agreements dating back over 10 years, refused meetings, and is avoiding communication altogether. Furthermore, some media outlets do not hesitate to criticize the National Pension, claiming political logic is at work.
Roads are national infrastructure and clearly public goods. Even if operated by private entities, if unreasonable operations impose excessive burdens on the government and citizens, correction is inevitable. Disappointingly, the National Pension's operation of Ilsan Bridge has lost both rationality and morality. I urge you to respond to Gyeonggi Province's requests at the earliest opportunity and fulfill at least your minimum responsibilities.