Environmental groups urge Yangyang mayor-elect to reconsider Seoraksan cable car project

Environmental organizations are calling on the newly elected Yangyang County Mayor, Kim Jeong-joong, to conduct a comprehensive review of the Seoraksan Osaek Cable Car project. The groups, including the National Action to Protect Seoraksan National Park and the Countermeasure Committee for Residents Against the Seoraksan Cable Car, held a press conference outside the Yangyang County Office demanding transparency.

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Mayor-elect Kim should fulfill his promise of transparent disclosure. We demand a comprehensive re-examination of the Seoraksan Osaek Cable Car project.

Kim, elected under the Democratic Party, had promised to openly disclose issues surrounding the cable car project, particularly concerning its escalating costs and profitability. This promise was made following the arrest of the previous mayor, Kim Jin-ha, on corruption charges. Environmental activists are highlighting the project's ballooning budget, which has surged from 46 billion won in 2015 to an estimated 117.2 billion won in 2023, with projections reaching 137 billion won by the planned 2029 completion date. They note that while provincial funding remains fixed at 20 billion won, the increased costs will fall entirely on Yangyang County.

Furthermore, the groups express serious doubts about the project's financial sustainability. They calculate that to recoup the investment within the cable car's 30-year operational lifespan, annual operating revenue of 4.28 billion won would need to cover escalating construction costs and inflation, requiring approximately 8.4 billion won annually. This shortfall, they argue, means the county will be burdened with debt for 30 years, with the cable car likely reaching the end of its service life before the investment is recovered. The deficit would ultimately be covered by taxpayer money.

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The project cost has surged uncontrollably. It increased from 46 billion won in 2015 to 117.2 billion won in 2023, and will reach 137 billion won by 2029. Provincial funding is fixed at 20 billion won, so the increase is entirely Yangyang County's burden.

Concerns also extend to the proposed funding sources. Yangyang County plans to use 62 billion won from its financial stabilization fund and 150 billion won from the sale of county-owned land. The environmental groups argue that the financial stabilization fund is intended for emergencies like disasters or revenue shortfalls and should not be diverted to a high-risk project. They criticize the county for considering the use of emergency funds and selling public land for a cable car project deemed to lack profitability.

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Investment recovery is structurally impossible. Annual operating revenue is only 4.28 billion won, but to recover the construction costs within 30 years, we need 8.4 billion won annually, considering cost increases and currency depreciation. Ultimately, the county residents will have to bear the unrecovered deficit with their taxes.

Jeong In-cheol, head of the National Action to Protect Seoraksan National Park's situation room, urged Mayor Kim to fulfill his transparency pledge. He called for an independent and objective review of the project from its inception, followed by the establishment of a permanent consultative body involving county officials, residents, experts, and civil society to determine the project's future through public hearings and resident consultations.

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This exploding project cost and collapsing revenue structure is the reality of the project that Mayor-elect Kim promised to disclose transparently. The project should be reassessed from scratch by an independent and objective institution.