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'Lowest Economic Feasibility in History': Yeongwol-Samcheok Expressway Preliminary Feasibility Study Report Delayed for Over Half a Year

[비즈한국] Although more than half a year has passed since the 5.6 trillion won Yeongwol-Samcheok Expressway project passed its preliminary feasibility study (pre-feasibility study), questions are being raised as the report has yet to be released. The Yeongwol-Samcheok Expressway has been a long-cherished project for the Gangwon region for 28 years, and its implementation was finalized after passing the pre-feasibility study on January 23 of this year.

The Yeongwol-Samcheok Expressway is a 70.3km-long, four-lane round-trip highway (with 4 ICs and 1 JCT) connecting Yeongwol-gun and Samcheok-si in Gangwon Province. It was reflected in the 2nd Expressway Construction Plan (2021~2025) in March 2023 and selected as a project subject to a pre-feasibility study in May of the same year.

While the project's passage was initially considered uncertain due to low economic feasibility, the Ministry of Economy and Finance announced on January 23 that it had passed the pre-feasibility study during the first 2025 Fiscal Project Evaluation Committee meeting. With the Yeongwol-Samcheok project confirmed following the construction of the Jecheon-Yeongwol Expressway, the 'East-West 6th Axis' connecting Pyeongtaek to Samcheok is expected to be completed.

The Yeongwol-Samcheok Expressway passed the study despite an exceptionally low economic feasibility analysis (B/C, Benefit-Cost ratio) of 0.27. Generally, a B/C value of 1 or higher indicates economic feasibility, meaning benefits outweigh costs. While highway projects are typically considered unlikely to pass if the B/C is below 0.5, this project crossed the threshold even with a value below 0.3.

The scale of the project cost is also significant. With a total budget of 5.6167 trillion won, it is one of the largest highway projects and the largest social overhead capital (SOC) project in Gangwon's history.

Projects with low economic feasibility can be selected as 'exempt from pre-feasibility studies' if they serve national balanced development or address emergency issues like disasters. However, the Yeongwol-Samcheok Expressway was not selected for such an exemption.

This is the first time a highway project that was not exempt from the study has passed with a B/C value as low as 0.27. At the time of approval, Gangwon Province stated in a press release, "Governor Kim Jin-tae and the provincial leadership continuously visited central ministries, related agencies, and the National Assembly to request ongoing attention," adding, "Despite difficult internal and external conditions, local lawmakers Lee Cheol-gyu and Yoo Sang-bum strongly demanded the project's promotion from the Presidential Office, the Ministry of Economy and Finance, and the Ministry of Land, Infrastructure and Transport, and contributed continuous support at the parliamentary level by ensuring it was included in the presidential election pledges."

They further evaluated, "Through these efforts, the total project cost increased by 450 billion won from 5.2031 trillion won to 5.6167 trillion won, and we created the first case in the 57-year history of South Korean highways where a project passed a pre-feasibility study with a B/C score of 0.3 or lower."

However, it has been confirmed that more than half a year has passed, yet the final pre-feasibility report has not been completed. The pre-feasibility study determines whether to proceed with a project by comprehensively considering economic, policy, and regional balanced development factors, but the report on this has not been disclosed.

Critics point out that given the historically low B/C value, the release of the report containing the grounds for the decision and the evaluation process is essential to ensure the justification and transparency of the project. Aside from the B/C value mentioned in the Gangwon Province press release, the specific scores for economic, policy, and regional balanced development—the key evaluation metrics for the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport—have not been disclosed.

Typically, highway pre-feasibility reports are released one to three months after approval. In fact, the pre-feasibility report for the Incheon-Seoul underground expressway, which passed its study on the same day as the Yeongwol-Samcheok project, was released in January.

As the disclosure is delayed, some are questioning whether the report sections are being completed after the review has concluded. An industry insider pointed out, "Due to political considerations, it is possible the review took place even if all sections of the report were not yet finalized, provided that the economic feasibility or project cost estimates were available."

An official from the Korea Development Institute (KDI), which conducted the study, stated, "I understand it is currently in the final stages. I will convey this to the research team so it can be uploaded quickly."

A Ministry of Economy and Finance official explained, "The review committee evaluates based on summary reports and presentations from the staff, so it is not that there was a lack of materials. The final pre-feasibility report is produced by synthesizing all the discussions and general comments made at that time." Regarding the delay, they said, "Upon checking, KDI says they will upload the final report by next week at the latest. I don't know the reason for the delay. I understand it usually takes about 3 to 5 months (after passing the study)."

The Ministry of Land, Infrastructure and Transport also stated that it has not confirmed the final report. An official from the Ministry explained, "The Ministry has also not yet received the final report. We believe the finishing work is being delayed. The Incheon-Seoul underground expressway construction project, which passed on the same day, has already had its report released."

Regarding the detailed route, the official said, "It is true that 4 ICs are planned, but the specific locations and routes have not been finalized yet. Construction is expected near Jeongseon, Sabuk, and the Seosamcheok area near Samcheok, but I cannot reveal the specific locations. Usually, adjustments are made in detail during the feasibility study process."

An official from Gangwon Province remarked, "Usually, it is released one month after the pre-feasibility study; I don't know why it hasn't been posted yet."

Near the Samcheok IC, which is the terminus of the Yeongwol-Samcheok Expressway, lies land owned by the family of former President Yoon Suk Yeol. About 16km away along the road (approximately 9km in a straight line) in Iro-dong, Donghae-si, Gangwon Province, First Lady Kim Keon Hee's mother, surnamed Choi, owns half shares of two plots of land. The total area of the land owned by Choi is approximately 6,200 pyeong (20,678㎡), which is about the size of three soccer fields.