Macquarie Korea Infrastructure Fund

Soojungsan Tunnel


Soojungsan Tunnel

Major tunnel connecting Busan port to the central business district of Busan, the second largest city in Korea.

Asset overview

Soojungsan Tunnel is a 2.3 km, dual two-lane tolled tunnel located in Busan, serving as an important connection from Busan central business district to Busan port and the northwestern residential region, including Gimhae International Airport. Construction of Soojungsan Tunnel commenced in May 1997 and was completed in December 2001.

Investment details

MKIF has invested in Soojungsan Investment Co., Ltd. ("SICL"), the concessionaire of Soojungsan Tunnel. As of record date, MKIF is a 100.0% shareholder of SICL, and MKIF’s total investment amount is KRW 47.1 billion (equity KRW 47.1 billion).

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Concession agreement  
Government authority Busan Metropolitan City
Concession term 25 years
Guarantee duration 25 years
Concession term commencement April 2002
Minimum Guarantee 90% of annual CA projected revenue
Revenue Cap 110% of annual CA projected revenue

*For toll revenue below 90%, Busan Metropolitan City is obligated to compensate 91.5% of the shortfall amount.

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Length 2.3 km
Capacity Dual two-lane in both directions

Asset location