The Daegu–Busan section of the Gyeongbu HSR became a separate project with the July 1998 project revision, with a budget of 5,698.1 billion won, with funding from the government and private sources by the same ratios as for phase 1. In August 2006, the project was modified to again include the Daejeon and Daegu urban area passages, as well as additional stations along the phase 1 section. For these additions, the budget as well as the government's share of the funding was increased.