ABSTRACT
This chapter builds on the Asian-inspired theme of innovative procurement and outlines the background and current status of private investment and policy stimulation for infrastructure development in Korea. Policies such as Minimum Revenue Guarantee (MRG) and issues such as over-estimated demand forecasting are examined along with the recent solution of Standard Cost Support (SCS), which was initiated to further encourage private investment in public infrastructure. During the last decade infrastructure projects in Korea have faced several critical issues, particularly with decreasing government budgets for infrastructures and increasing government budgets for the likes of welfare. In order to stimulate private investment, the government enacted laws to support investment such as the MRG policy. The involvement of the private sector has led to more effective, efficient and innovative contracting and procurement methods resulting in project cost savings, improved serviceability and more appropriate risk allocation. The main contents of MRG policy were guarantee periods and guarantee levels.
