Doosan Construction Consortium Fails to Secure Investors
City Prepares for New Private Bid and Transition to Public Financing
Oh Sehoon: "Railway Construction Will Proceed Without Delay"

The West Line light rail project, a key transportation infrastructure initiative for western Seoul, has once again come to a halt. The Doosan Construction Consortium, the project's preferred negotiation partner, failed to secure investors, resulting in the suspension of negotiations with the Seoul Metropolitan Government. The city is also reviewing the administrative procedures required to convert the project into a public-financed undertaking.


On April 1, the Seoul Metropolitan Government announced that it would terminate ongoing negotiations with the Doosan Construction Consortium—the preferred negotiation partner for the West Line Urban Railway private investment project—and commence procedures to revoke their status as the preferred negotiator.

Seobu Line Urban Railway Map. Seoul City

Seobu Line Urban Railway Map. Seoul City

View original image

The West Line light rail project aims to connect Saejeol Station on Subway Line 6 in Eunpyeong-gu to Seoul National University Station on Line 2, spanning a total of 16.2 kilometers. The line will pass through six districts—Eunpyeong, Seodaemun, Mapo, Yeongdeungpo, Dongjak, and Gwanak—serving areas that have long been underserved by public transportation, with a total of 16 stations planned. Although this has been a long-awaited project for residents in northwestern Seoul, it has remained stalled since its initial launch in 2008.


In December 2024, the Seoul Metropolitan Government, aiming to expedite the project, maximized the total project cost proposed by the Doosan Construction Consortium within the basic plan for private investment projects and secured approval from the Private Investment Project Review Committee of the Ministry of Strategy and Finance.


However, the Doosan Construction Consortium failed to meet essential requirements for project advancement, such as securing construction investors, and made no significant progress for over a year. The business outlook deteriorated as material and labor costs surged, financial expenses increased, and the war between Russia and Ukraine persisted. As a result, some participating companies withdrew from the consortium.


In response, the city notified the Doosan Construction Consortium that if they failed to secure construction investors by March 31, 2026, their status as the preferred negotiation partner would be revoked.


The consortium ultimately failed to secure investors by the final deadline of March 31, and the city decided to proceed with the cancellation of their preferred negotiation status in accordance with relevant laws. The cancellation is expected to be finalized around mid-July, after a legal process that includes a hearing period of at least 10 days under the Administrative Procedures Act and a 90-day litigation period under the Administrative Litigation Act.


The Seoul Metropolitan Government is preparing to issue a new public notice to select a new operator, in line with legal procedures, and is also preparing for the possibility that no suitable operator is selected. The city will simultaneously conduct all administrative steps needed for the conversion to a public-financed project, including a preliminary feasibility study and the inclusion of the project in the urban railway network plan. Since January, the city has also been carrying out a new demand forecast study to support a private investment approach.


Another privately initiated rail project, the Wirye-Sinsa Line, is making swift progress. Although it was launched at the same time and in the same manner as the West Line, after the preferred negotiation partner abandoned the project, a new call for private investment was issued, but the project was ultimately converted to public financing. By minimizing the time required for administrative procedures and simultaneously conducting a rapid preliminary feasibility study and amending the urban railway network plan, the city succeeded in reducing the project timeline by about two years.


On March 10, the Seoul Metropolitan Government announced plans to continue advancing rail projects focused on underserved areas, enabled by recent improvements to the preliminary feasibility study system after more than seven years of effort.


Until now, preliminary feasibility studies for railway projects were evaluated primarily on economic viability, causing many of Seoul's rail projects aimed at proactively investing in underserved areas to stall. In response, over the past seven years, the city has continuously requested the Ministry of Strategy and Finance to reduce the emphasis on economic viability, while adding new evaluation criteria for “balanced regional development” and “efficiency of the public transportation system.”


The Seoul Metropolitan Government plans to make active use of the improved system to accelerate projects such as the Nanggok Line, which is currently undergoing a preliminary feasibility study, by strengthening its rationale and refining data to pass the review within this year. For lines such as the Gangbuk Cross-City Line, which are still in the planning stage, the city will conduct preliminary feasibility studies to enhance project viability.



On the morning of April 1, Seoul Mayor Oh Sehoon visited the West Line site to receive a project update and stated, “Starting with the West Line, we will seamlessly advance railway construction projects that connect daily life for citizens and invigorate local communities, thereby reducing inconvenience for residents in underserved areas and achieving balanced regional development.”


This content was produced with the assistance of AI translation services.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

Today’s Briefing