Seoul's Hangang Bus faces audit over misrepresented targets and funding gaps
Seoul’s Hangang Bus project, a newly launched river transit service intended to revitalize public transportation along the Han River, is under scrutiny from South Korea’s top audit body for potentially misrepresenting its performance targets. The Board of Audit and Inspection said Seoul City announced schedules based on a target speed that may not be attainable.
The audit notes that model-test results in December 2023 and a meeting in April 2024 indicated the service could fall short of the planned speeds. Despite this, the city publicly presented express and regular service plans and timetables that presumed the target speeds. The board pointed out that twelve vessels have already been built, which it said would not meet the travel times claimed by Seoul.
Auditors warned that the project’s stated goal of boosting daily commuting for citizens could be undermined if speeds cannot be achieved. They directed the mayor to revise the operation times and timetables to reflect realistic speeds rather than the nominal targets.
On funding, the Audit Office found Seoul City’s total project cost was calculated by counting only the harbor’s lower-facility expenses covered by the city budget, while excluding vessel procurement costs borne by private or external entities. Because of this accounting, the central government investment review and independent feasibility studies required by law were reportedly not conducted, and internal city reviews of investment and feasibility were not held in proper form.
The board also criticized the economic analysis, saying the city accepted a cost-benefit assessment that included benefits from upper harbor facilities and vessel operations without properly aligning costs and benefits. This, the audit said, undermined the reliability of the project’s economic viability.
At the same time, the Audit Office found no evidence of illegal or improper favoritism in the tendering or contractor selection process for the Yeouido harbor component, and it said there were no improper acts in relation to contractor selection or post-management for the broader Great Han River development plan.
Why this matters to U.S. readers: the report highlights how large urban transit and waterfront infrastructure projects are scrutinized for performance realism, cost transparency, and governance. For American cities weighing similar riverfront transportation or public–private partnerships, the case underscores the importance of sticking to credible speed and service targets, ensuring proper statutory cost reviews, and conducting independent feasibility analyses to manage risk, schedule, and funding. It also illustrates how international investors and suppliers monitor governance and accountability in major infrastructure programs.