Lee Jae-myung: "National Pension ignoring expensive Ilsan Bridge tolls, some media backing it up"

[Suwon Ilbo=Park Noh-hun Reporter] Gyeonggi Province Governor Lee Jae-myung lashed out at the National Pension Service, which is the sole shareholder of Ilsan Bridge.

Governor Lee Jae-myung opened fire on the National Pension Service through his SNS on the 27th, saying "If a public institution operating large-scale funds exploits its superior position to reap unacceptable excessive profits and passes that burden onto the people, this is an unacceptable problem."

He then enumerated the reality of National Pension's operation of Ilsan Bridge and said "Gyeonggi Province has repeatedly requested refinancing through briefing sessions and National Assembly debates. However, the National Pension Service refuses to have face-to-face meetings, citing implementation agreements over 10 years old, and is avoiding communication itself," and also took aim at some media, saying "Some media even criticize the National Pension without hesitation, claiming to attack it based on political logic."

Governor Lee stated "Roads are national infrastructure and clearly public goods. Even if it were a private company, if unreasonable operation places excessive burdens on the government and people, it is natural to correct it. 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 expensive Ilsan Bridge tolls, some media backing it up>
There is no question that the National Pension Service must contribute to the substantive enrichment of pensions through rational investments. However, if a public institution operating large-scale funds exploits its superior position to reap unacceptable excessive profits and passes that burden onto the people, this is an unacceptable problem.
Ilsan Bridge is the only toll bridge among 27 bridges over the Han River, with per-kilometer tolls 13.2 times higher than those of government-financed road projects. Vehicles commuting between Seoul and the northwestern Gyeonggi region including Gimpo, Ilsan, and Paju—areas that essentially form a single living sphere—cross Ilsan Bridge two or three times a day, having to bear unreasonably high tolls.
The National Pension Service is both the sole shareholder of Ilsan Bridge Co., Ltd. and an investor providing funds through self-lending. In this unique situation where the shareholder and lender are the same, it is reaping unfair profits from high-priority debt interest rates (8%), making toll adjustments difficult. Since this is based on the 2009 financial agreement interest rate standard, adjustments are needed based on current interest rates. The 3-year corporate bond rate has continuously declined from 4.7% in 2010 to 2.2% in 2020, so if the debt is refinanced, a much lower interest rate than 8% is possible.
Beyond the senior debt, the subordinated debt approaching 20% is nothing less than a breach of duty to pay deliberately higher interest in an era of ultra-low interest rates. The actual traffic volume ratio compared to estimated traffic volume shows an increasing trend (2009: 58.1% → 2020: 105%), and the investment recovery received from tolls and minimum revenue guarantee (MRG) has already exceeded construction costs. With less than 1 billion won in residual value on the accounting books, this trend would result in a structure where profits far exceed investments until 2038, the revenue guarantee period, representing excessive profits contrary to common sense. This is an immoral practice of exploiting revenue guarantee clauses to impose exorbitant tolls on the people.
Gyeonggi Province has repeatedly requested refinancing through briefing sessions and National Assembly debates. However, the National Pension Service refuses to have face-to-face meetings, citing implementation agreements over 10 years old, and is avoiding communication itself. Additionally, some media even criticize without hesitation, claiming to attack the National Pension based on political logic.
Roads are national infrastructure and clearly public goods. Even if it were a private company, if unreasonable operation places excessive burdens on the government and people, it is natural to correct it. 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.