Some highway operating companies built with private capital have reportedly received dividends several times greater than their initial investments. This has raised concerns about the profitability structure of private toll roads, especially as government financial support continues.
On September 15, data submitted by Democratic Party lawmaker Jang Jong-tae to the Ministry of Land, Infrastructure and Transport revealed that Shin Airport Highway, which operates the Incheon International Airport Expressway, has distributed a total of 1.3167 trillion won in dividends from an initial investment of 76 billion won, amounting to 17.3 times the original investment.
Similarly, the Cheonan-Nonsan Expressway has recorded a cumulative dividend of 882 billion won from an initial investment of 146.2 billion won, which is six times the original amount. Together, the two companies have a total investment of 222.2 billion won and cumulative dividends of 2.1987 trillion won.
Over the past five years, the dividend amounts have been substantial. From 2021 to 2025, the two companies distributed a total of 945 billion won in dividends, with the Incheon Airport Expressway contributing 460 billion won and the Cheonan-Nonsan Expressway providing 485 billion won. This averages to approximately 92 billion won and 97 billion won per year, respectively.
In the case of the Incheon Airport Expressway, the initial investment was 76 billion won, yet the average annual dividend over the past five years reached 92 billion won, representing 121% of the initial investment each year. The Cheonan-Nonsan Expressway also distributed 66% of its initial investment annually.
Concerns are heightened by the fact that government financial support has also been consistently provided to private toll roads. Over the past five years, the government has allocated a total of 847.4 billion won in financial support to private companies, including 376.8 billion won for minimum revenue guarantees (MRG) and 327.9 billion won as compensation for not raising tolls.
Notably, the compensation for not raising tolls increased from 29.6 billion won in 2021 to 132.6 billion won in 2025, a 4.5-fold rise over four years. While total financial support decreased from 326.8 billion won in 2021 to 187.9 billion won in 2025, the burden of compensation for not raising tolls has grown.
Toll rates on private roads remain higher than those on routes operated by the Korea Expressway Corporation. Of the 23 private toll road routes, 21 have higher tolls than those set by the corporation. For instance, the Icheon-Osan Expressway charges 3,700 won, which is 1.61 times the 2,300 won charged by the corporation. Other routes, such as Bongdam-Songsan, Sangju-Yeongcheon, and Pyeongtaek-Buyeo, also have tolls that are 1.35 times, 1.31 times, and 1.27 times higher, respectively.
Information on dividends has been limited. The data provided only includes dividend performance from two of the 23 private toll road companies: Shin Airport Highway and Cheonan-Nonsan Expressway. The dividend status of the remaining 21 companies was not disclosed.
The largest shares in these two companies are held by Macquarie Korea Infrastructure Fund, which owns 60% of the Cheonan-Nonsan Expressway and 24.1% of the Incheon Airport Expressway. Additionally, Macquarie has investments in six of the 23 private toll roads, including Incheon Bridge, Namhae Third Route, Yongin-Seoul, and Incheon-Gimpo.
As private toll roads continue to generate stable dividend income amid government financial support and high toll structures, calls for greater transparency in dividend disclosures and stricter management standards for financial support are expected to grow.
Lawmaker Jang stated, “For over 20 years, a structure has persisted where losses are compensated with taxpayer money while shareholders receive dividends exceeding their initial investments each year. We must thoroughly review the profitability structure of private toll roads, which is marked by excessive dividends and financial support, and work towards improving the system to reduce the burden on the public.”
* This article has been translated by AI.
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