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Twenty-Two Trillion Won Increase in Estimated Capital Relocation Costs

Twenty-Two Trillion Won Increase in Estimated Capital Relocation Costs

Posted October. 11, 2004 23:03,   

한국어

On October 11, the National Assembly Budget Office (NABO) announced that it will cost 67.1982 trillion won this year alone to fund the current government-initiated plan to relocate the capital.

The estimate made by NABO is 47.4 percent higher than the Presidential Committee on Administrative Capital Relocation’s initial report estimating the relocation to cost 45.6 trillion won (government responsible for 11.3 trillion won and civil corporations will be responsible for 34.4 trillion won). This will inevitably raise voices against the capital relocation again and will attract much attention from the nation.

On this day, in the “Assessment of Estimated Total Costs for Capital Relocation” report that NABO presented to the National Assembly’s judicial legislative representative Joo Sung-young, NABO estimated that by 2016, after considering rising prices (four percent estimated increase in the price index during the years 2004~2007. 3.5 percent estimated increase in the price index during the years 2008~2016), that it would cost a total of 103.5175 trillion won in 2016 alone.

The year 2016 is when half of the scheduled relocation will be complete. The entire process is scheduled to conclude in 2030.

NABO disagreed with the government’s estimate of the total costs to refurbish the relocation area and provided standard facilitations of 9.9 trillion won, correcting the statement that it would cost “some 12.933 trillion won after building cultural and sports facilities as well as some added environmental refurbishing.”

Also, government calculations that estimated that civilian corporations will spend 6.5 million won per pyong for development, and estimating 28 trillion won for construction, was also disagreed upon. NABO estimated, “A B-grade intelligent building would cost approximately 12 to 15 million won per pyong, and a total of 48.8666 trillion won will be spent on civilian construction corporations alone.”

Last year, the government’s estimate of the cost of relocation did not factor in the future rise in the price index.



Yeon-Wook Jung jyw11@donga.com