South Korea has launched a feasibility study into the construction of tunnels linking the country with China and Japan for high-speed railways, reports said Tuesday.

A state research institute is expected to produce a paper on its investigation before the end of the year at the request of the transport ministry, Yonhap news agency said.

The Chosun Ilbo newspaper carried a similar report saying the ministry was reviewing the feasibility of the tunnels as part of its long-term plan for a high-speed railway network with Japan and China.

The ministry's transport institute has proposed the idea of building a tunnel between China's eastern port of Weihai and the west coast of the peninsula, it said.

The other tunnel, stretching about 220 kilometres (135 miles) would link South Korea's southern port of Busan and the Japanese island of Tsushima and Fukuoka port, the daily said.

But the tunnels may not be realised in the near future due to the massive amount of funds needed, Yonhap said, adding South Korea also needs agreement with its neighbours.

It quoted an unnamed ministry official as saying: "It may take tens of years before we start the project, even if the report says it is technically possible, as there are many other aspects we need to consider."

earlier related report

PSA Citroen Peugeot says it will build plant in China
Paris (AFP) Sept 21, 2010 –

French auto giant PSA Peugeot Citroen said on Tuesday it will build a plant in China with its partner Dongfeng Motor to boost its presence in the world's biggest and fastest-growing car market.

The new plant will be in Wuhan, central China, and will have initial annual capacity of 150,000 vehicles when it comes on-stream in 2013, said a statement issued to mark a visit to China by PSA head Philippe Varin.

The plant will increase total PSA capacity in China through its joint ventures with Dongfeng Motor to 750,000 vehicles by 2015, up from the current 450,000 units.

PSA said it will also introduce at least one new model a year in China and boost its dealership network to increase business in its second most important market.

The new cars will be more environmentally friendly and will include hybrid petrol-electric models, it said, adding that combined, the package would allow its Dongfeng joint venture to win five percent of the Chinese market by 2015.

In July, PSA formally agreed a 1.2-billion-dollar (916-million-euro) joint venture with Chinese group Changan Automobile to build 200,000 cars a year initially at a plant in Shenzhen, just across from Hong Kong in southern China.

Auto sales in China hit 9.02 million in the first half of 2010, a year-on-year rise of 48 percent, according to Chinese figures, as the market booms on the back of sustained economic growth and development.

Western and Japanese auto firms all have major plants and interests in China, attracted by its growth prospects.

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