- Expressway 939.3 billion won, railway 140.588 1.5 billion won
- “The ripple effect in the real estate market will be huge”
This year, land compensation worth 1.275 trillion won will be released from the social overhead capital (SOC) project.
According to the result of analysis of this year's budget details of the Ministry of Land, Infrastructure and Transport, the National Railroad Corporation, and each local land management agency by Jizon, a land compensation and real estate development information platform, 939.28 billion won on 20 highway routes and 140.58815 billion won on 26 railroad routes. It was found that the land compensation budget of 195.25.13 million won was allocated to 10,000 won and 53 national highway routes, respectively.
For this year's highway construction project, a total of 939.2 billion won in land compensation was allocated for 17 financial routes including the Seoul-Sejong Expressway and three privately funded routes including the Bongdam-Songsan Expressway.
This is an 11.895% decrease compared to the land compensation budget of 1.66 trillion won in all 16 routes for financial projects and 4 routes for private projects last year.
Following last year's (430.7 billion won), the place where the most land compensation is being released is this year's Seoul-Sejong Expressway. In the Anseong-Guri section and Sejong-Anseong section, a total land compensation budget of 434.7 billion won was allocated, including 256.2 billion won and 178.5 billion won, respectively. This is equivalent to 40.78% of the total compensation cost for highways this year.
The Seoul-Sejong Expressway connects Topyeong-dong, Guri-si, and Janggun-myeon, Sejong-si, and is built with an extension of 129 km (6 lanes). The Korea Expressway Corporation is expected to open in June 2024 with an investment of 8.1 trillion won.
When this expressway is opened, the travel time between Seoul and Sejong will be shortened to 70 minutes, contributing to the early stabilization of the functions of Sejong City.
In addition, 81.3 billion won for the Gimpo-Paju section of the second ring highway in the metropolitan area, 45.7 billion won for the Paju-Pocheon section, and 36.1 billion won for the Saemangeum-Jeonju expressway will be released.
In the private sector project, 127.2 billion won was allocated to the private investment project of the Bongsan-Songsan Expressway, and 5 billion won of land compensation was set for the Pyeongtaek-Buyeo-Iksan Expressway.
In the railroad business, land compensation will be applied to four high-speed railroads, two metropolitan railroads, and 20 general railroads with an allocation budget of 14.56 billion won.
This is a decrease of 3.7% compared to the land compensation budget of 145.971 billion won allocated to 24 routes last year.
The route with the largest amount of incorporation land compensation cost this year is the second phase of the Honam high-speed rail construction project. A budget of 24.65 billion won has been set.
Next, 14.877 billion won and 12.481.4 billion won will be invested in the West Sea double-track railway construction project (general railroad) and the Gunjang National Industrial Complex entrance railroad (general railroad).
In addition, 11 billion won and 10.2 billion won of land compensation budgets are allocated for the KTX direct connection project from Suwon and the KTX direct connection project from Incheon, which are promoted as high-speed rail projects, and the project is being pursued in earnest with the goal of completion in 2024.
On national roads, the land compensation fee of 195.25 billion won is planned to be released on all 53 routes nationwide.
The place where the largest amount of compensation is released is the National Road 18 project ordered by the Iksan Regional Land Management Agency. A budget of 18,279 million won was allocated.
In addition, land compensation of 11.393 billion won and 11.561 billion won will be released for the Namil Goeun~Cheongju Sangdang and Chungcheong Naeryuk 4 national road construction projects, respectively.
A Jizon official predicted, "The 1.3 trillion won land compensation to be released from this year's SOC project will have a huge ripple effect on the real estate market in conjunction with the land compensation paid out in the metropolitan area, such as the 3rd new town, which is a recent issue."
