DistantNews
Support us
🇰🇷 South Korea /Energy & Infrastructure

Ulsan City to decide fate of controversial urban railway project this week

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Ulsan City is set to decide this week whether to proceed with its controversial Urban Railway Line 1 project, a hydrogen tram initiative.
  • The city is facing difficulties in halting the project due to potential legal liabilities and contract obligations with construction companies.
  • The mayor's opposition to the project, citing concerns over traffic congestion, low ridership, and long-term financial burdens, has created a conflict with the city council.

Ulsan City is on the verge of a decision regarding the future of its Urban Railway Line 1 project, a controversial initiative to introduce hydrogen trams. The city council is scheduled to make a final determination on July 31st regarding whether to continue or halt the project.

We must make a decision on whether to halt the project by July 31st.

— Kim Sang-wookMayor Kim's directive for a final decision on the urban railway project.

Mayor Kim Sang-wook has expressed strong reservations about the project since his election campaign, citing potential issues such as severe traffic congestion during construction, limited effectiveness of the tram system as public transport, and the prospect of significant long-term financial strain due to anticipated low ridership. These concerns have led the city to re-evaluate its commitment.

However, halting the project presents considerable challenges. Ulsan City signed a turnkey contract with Hanshin Engineering & Construction consortium for design and construction and recently finalized a contract for initial construction work. They also have a 63.4 billion won contract with Hyundai Rotem for tram vehicle manufacturing. Canceling these contracts could expose the city to substantial compensation claims. The city's ability to suspend construction is limited to 60 days under the contract, falling short of the estimated year needed for public deliberation and re-evaluation.

It is difficult to avoid legal responsibility, including compensation for damages, if the project is halted.

Highlighting the legal and financial risks associated with canceling the project.

Adding to the complexity, a proposed ordinance to establish a public deliberation committee was rejected by the Ulsan City Council, where the mayor's party holds a majority. This has created an impasse, with the city exploring ways to proceed with public consultation within the existing framework. The mayor has instructed officials to find a way to make a definitive decision by July 31st, even if it involves canceling existing contracts or halting construction.

Continuing the project as it is also inappropriate.

Reflecting the internal debate within the city regarding the project's viability.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog