Project on Railway Property Development

• KR, the property administrator in charge of managing national railway property, is expanding development projects to enhance efficient use of railway site and the convenience of passengers. There are 21 projects in operation and 20 projects under construction or in progress. KR has contributed to improving financial structure by creating a profit of 0.5 billion US dollar since 2004, KR’s launch.

Project Method

• Railway property development project utilizes the third sector, which attracting private capital to develop railway properties. SPC, being established and financed by KR and private operators, takes a leading role in the projects and it will be guaranteed the right to own and operate the facilities for 30 years and proceed development projects. KR realizes a profit from rent for land use and dividend from the projects.

Complex Development Project

• Complex development project is to develop station area functioning as commerce, accommodation, transfer, and business. GWANGMYEONG station is the best example of the project where convenient public transit transfer system is built and global company COSTCO is located nearby. Also, COSTCO GWANGMYEONG ranked in the top 10 in sales among Costco stores in the world. There are also some projects in progress ; GONGDEOK station, HONGIK Univ. station, etc.

Unused Railroad Site Utilization

• In accordance with new railroad construction which causes abandoned railway and railway station, KR is making an effort to develop unused railroad site in cooperation with local government trying to revitalizing regional economy. HIGH-ONE CHOO CHOO PARK is one of the best practices which develop the abandoned switchback railroad according to new railway line construction. It has various facilities including Rail-bike, Incline-train, Mini-train, Sightseeing-train, Accommodation, and etc., becoming one of the unique theme parks in South Korea. Also, it has contributed to revitalization of regional economy and job creation by promoting tourism industry on the abandoned mine area. There are other unused railroad sites development in progress ; GANGCHON RAILPARK and HAEUNDAE BLUELINE and so on.

Station area development

• KR is extending business field from the development projects on railway property to railway station area development including private lands. This project propels by issuing bonds. KR carries forward the station area development to resolve community severance and construct well organized urban environment. In addition, KR is trying to collect asset appreciation from railway construction and reinvest it to the station area developments. SUSEO station area development is one of the best examples. It has master plan of making the huge land of 386,000㎡ a new town so that it takes major role in regions. KR expects profit of 0.3 billion dollar from this giant project. There are also other station area development project in progress ; JIJAE, DAEGOK, YONGIN station area and so on.