Following the 1997 Asian Financial Crisis, the government decided to realise the Gyeongbu HSR in two phases. In a first phase, two-thirds of the high-speed line between the southwestern suburbs of Seoul and Daegu would be finished by 2004, with trains travelling along the parallel conventional line along the rest of the Seoul–Busan route. The upgrade and electrification of these sections of the Gyeongbu Line was added to the project, and also the upgrade and electrification of the Honam Line from Daejeon to Mokpo, providing a second route for KTX services. The budget for the first phase was set at 12,737.7 billion won, that for the entire project at 18,435.8 billion won in 1998 prices. While the share of government contributions remained unchanged, the share of foreign loans, domestic bond sales and private capital changed to 24%, 29% and 2%.