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Top court holds former mayor liable in Yongin light rail project ruling

Published: 17 Jul. 2025, 00:00

A light rail train operates in Yongin, Gyeonggi. [NEWSIS]

In a landmark ruling on fiscal accountability, the Supreme Court has confirmed a damages judgment against a former mayor and a government-funded think tank for their roles in a costly and poorly planned urban rail project. The decision marks the conclusion of a 12-year legal battle initiated by a group of residents in Yongin, Gyeonggi.

The court upheld an earlier decision finding former Yongin Mayor Lee Jeong-moon and the Korea Transport Institute liable for financial damages related to the Yongin Light Rail Transit (LRT) project. The ruling set a precedent: Even after leaving office, local government officials may be held partially responsible for fiscal losses resulting from economically unviable public projects.

The project was troubled from the outset. Initial demand projections were flawed, and had the forecasts been accurate, the project likely would not have moved forward. Though construction of the LRT was completed in June 2010, disputes between Yongin and the Canadian contractor over a minimum revenue guarantee delayed its opening until April 2013. Ultimately, the city paid the company 850 billion won ($612 million), including interest, and an additional 29.5 billion won in operating and personnel costs by 2016.

Ridership fell far short of expectations, worsening the city’s financial situation and placing a long-term burden on taxpayers.

Residents filed their lawsuit in October 2013, naming three former mayors as well as current and former civil servants, city council members and the Korea Transport Institute and its researchers. They sought 1.023 trillion won in damages. Lower courts initially dismissed most of the residents’ claims. But in July 2020, the Supreme Court overturned the appeals ruling and sent the case back for reconsideration.

The Seoul High Court subsequently ordered Lee and others to pay 21.4 billion won in damages — about 5 percent of the city’s total losses. With the Supreme Court’s final ruling this week, Lee is now legally obligated to compensate Yongin. Although the awarded damages fall short of the residents’ original claim, the case is significant for establishing that leaders can be held legally liable by their constituents.

On the morning of July 29, 2020, Hyun Geun-taek, representing the plaintiffs in a suit against the Yongin mayor and others over the city’s light rail project, speaks to reporters in front of the Supreme Court in Seocho District, southern Seoul, after the final appeals hearing. The Supreme Court overturned the court’s decision and remanded the case to the Seoul High Court. [YONHAP]

The decision is expected to influence future public investment decisions by other municipalities. It underscores that elected officials, regardless of their mandate, cannot proceed with large-scale projects without thorough feasibility studies, especially when taxpayer funds are at stake.

The ruling also sends a message that inflating demand forecasts or bypassing economic assessments can lead to personal liability — even after officials leave office. It is a reminder that vigilant civic oversight and legal mechanisms are essential to preventing wasteful public spending.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.