ABSTRACT
During the last three decades, the Korean economy has grown rapidly with a great amount of capital invested in constructing infrastructure facilities. As the infrastructure capacity has grown, maintenance costs for facilities have constantly increased. However, as concerns for the environment and welfare have also increased, the total budget for infrastructure facilities has been continuously reduced. Therefore since the 1990s, the invigoration of private investment has been treated as an important issue by the Korean government as it provides an effective solution to the financial constraints it has faced. The scope of private investment projects is expanding from existing ones in road and transportation facilities to social infrastructure facilities such as schools, hospitals, and residential accommodation (PIMAC, 2010). As in developed countries, private participation in infrastructure provision in Korea is a concept which involves the public and the private sectors working in cooperation and partnership to provide infrastructure and public services.
