According to changes in the characteristics and policies of Seoul, various types of projects for road facilities are being promoted. However, the current technique for conducting a road project’s feasibility study is based on the preliminary feasibility study guidelines and prioritizes the examination of large-scale projects over small-scale projects. Therefore, it is necessary to improve the feasibility study methodology considering the characteristics of the business.

In this study, “small-scale road projects” were defined as projects with relatively small total project costs or extensions by analyzing road projects commissioned by the Seoul Public Investment Management Center in the past five years. In particular, among the types of small-scale road projects, “road expansion projects”, which require consideration of the regional and traffic environment

characteristics of Seoul, were selected as the main improvement target type, and a study was conducted to derive limitations through case analysis and propose improvement measures.

First, among the small road projects, the cost that accounted for most of the total project cost of the road expansion project was found to be the compensation expenses. This is because, unlike other types of road projects, it is affected by the relatively high land price of Seoul and is particularly likely to incur compensation due to obstacles built along the road. As a result, compensation expense items like land compensation expenses, building compensation expenses, and sales expenses were classified, systematized, and presented in order to improve the reliability of estimated costs by applying a consistent compensation cost calculation procedure during the feasibility study and to help minimize the gap between estimated compensation costs and actual compensation costs.

Second, in the case of a road expansion project, which is the main subject of this study, considering that macroscopic analysis techniques and microscopic analysis methods can be used in  combination. Macroscopic analysis methods were applied in projects with a small project size (extension) to suggest important points when estimating demand.

Third, small-scale road expansion projects are limited in judging the business effect only with the main benefits reflected in the existing feasibility study. Therefore, as new benefit items applicable to small-scale road expansion projects, it was proposed to introduce “residual land utilization benefit” and “land use value increase benefit”.

The term "residual land utilization benefit" refers to the future value of the residual land that will unavoidably result from promoting the road expansion project. It is assumed that the maximum value of the residual land utilization benefit will not exceed the total cost of compensating for the residual land, and the depreciation level in relation to the compensation price is predicted using
the urban planning land price ratification table.

The benefit of increasing the use value of land refers to the business effect of changing the utilization of land limited to road expansion projects in which the value of land increases due to changes in the physical environment. The benefit of increasing the use value of land is estimated by taking the individual published land value of the parcel adjacent to the road as the reference value

after the road expansion, and applying the increase rate according to the land price ratification table of the road face.

Fourth, because economic feasibility is frequently assessed at a low level and the influence of benefit items is not clearly displayed, it is important to stress policy consequences through policy analysis. The Center presented a plan to express the importance ranking by policy effect in order for the contents of the policy analysis to serve as an important judgment foundation for deciding the project promotion of fiscal investment projects.