Uijeongbu Mayor An Byeong-yong Proposes Amendment to Urban Railway Act

Uijeongbu Mayor An Byeong-yong met with Jo Jung-sik, chairman of the National Assembly's Land, Infrastructure and Transport Committee, on June 26 to propose an amendment to the Urban Railway Act to expand government funding support and alleviate Uijeongbu City's financial burden caused by the Uijeongbu Light Rail Transit, which was constructed under the Private Investment in Social Infrastructure Act.

Article 22 of the current Urban Railway Act (Government Support, etc.) states that "the government may provide administrative support to mitigate the financial burden of local governments caused by urban railways constructed under the Private Investment in Social Infrastructure Act."

Mayor An requested that the provision be amended to: "the government may provide administrative and financial support to mitigate the financial burden of local governments caused by urban railways constructed under the Private Investment in Social Infrastructure Act."

Mayor An explained the justification for the amendment by citing systemic loopholes in private investment projects, failure of central government agencies and national research institutions to conduct proper verification, and local fiscal crises.

Although the government introduced the MRG (Minimum Revenue Guarantee) system and the termination payment system to promote private investment projects, these systems have acted as factors driving local governments into fiscal crises and causing business operators to lose motivation to continue operations.

Despite private investment projects undergoing review and verification by relevant central government agencies and national research institutions, even demand forecasts that have been verified show actual demand at less than 20%, revealing poor verification standards that have resulted in local governments' fiscal crises and operational instability.

Basic local governments operating urban railways as private investment projects face severe financial burdens including MRG, termination payments, and transfer discount subsidies. In particular, Uijeongbu City, with a local tax revenue ratio of only around 30%, would face an extreme fiscal crisis if required to pay termination payments exceeding 200 billion won.

Mayor An Byeong-yong stated, "Since local governments bear significant fiscal crises due to private investment projects, the government bears considerable responsibility. The President also promised to find solutions for the normalization of Uijeongbu Light Rail Transit during the campaign. I propose that legal grounds be established promptly through amendment of the Urban Railway Act so that local governments operating private sector railways can receive government funding support."