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Infrastructure Policies and
Private Participation in Investment
Oct. 22, 2004
Heung-Soo Kim
Managing Director
Private Infrastructure Investment Center of Korea
Korea Research Institute for Human Settlements
Priv
ate P
artic
ipat
ion
in
Infr
astr
uctu
re in
Kor
ea
Pre
pare
d for KO
ICA P
rogra
mKRIH
S,
22 O
cto
ber 2004
His
tory
of K
orea
n P
PI
Polic
y D
irec
tion
Key
Fea
ture
s of
Kor
ean
PPI
Intr
odu
ctio
n o
f PIC
KO
Kor
ea P
PI M
arke
t O
utl
ook
CON
TEN
TSCO
NTE
NTS
Bef
ore
PPI
Sys
tem
( ~
’94)
From
196
8 to
199
4, 9
3 in
frast
ruct
ure
proj
ects
val
ued
atU
SD
2.7
bill
ion
wer
e im
plem
ente
d w
ith p
rivat
ein
vest
men
t
With
outa
com
preh
ensi
ve le
gal s
yste
m, e
ach
proj
ect
was
pro
mot
ed b
ased
on
indi
vidu
al la
ws
such
as
the
Roa
d A
ct, H
arbo
r Act
, etc
.
This
ad
hoc
appr
oach
was
lim
ited
in s
cope
and
had
less
than
sat
isfa
ctor
y re
sults
Hist
ory
of K
orea
n PP
IH
istor
y of
Kor
ean
PPI
Intr
odu
ctio
n o
f PPI
Sys
tem
(’94
~’98
)
1994
: Le
gisl
atio
n of
Act
45 p
roje
cts
prom
oted
Initi
al s
ucce
ss le
ss th
an a
ntic
ipat
edC
once
ssio
naire
s de
sign
ated
in o
nly
10 p
roje
cts
Littl
e si
gnifi
cant
pro
gres
s sh
own
in o
ther
pro
ject
sN
o fo
reig
n ca
pita
l inv
este
d
Fina
ncia
l Cris
is in
199
7
Hist
ory
of K
orea
n PP
IH
istor
y of
Kor
ean
PPI
PPI u
nder
New
Fra
mew
ork
(’98
~Pre
sent
)19
98 :
Am
endm
ent o
f Act
Can
cella
tion
of 2
2 ou
t of 4
5 pr
ojec
ts19
99 ~
200
2 : P
rogr
ess
Tota
l 37
proj
ects
und
er c
entra
l gov
ernm
ent
•14
new
pro
ject
s pr
omot
ed /
7 w
ere
unso
licite
dTo
tal 9
2 pr
ojec
ts u
nder
mun
icip
al g
over
nmen
t Fo
reig
n In
vest
men
t•
US
D 3
00 m
il. in
con
tract
s ha
s be
en s
igne
d•
US
D 3
.2 b
il. is
exp
ecte
d to
be
sign
ed s
oon
2001
: P
ublic
atio
n of
the
10-Y
ear P
lan
for P
PI
Li
stin
g of
all
proj
ects
of h
igh
inve
stm
ent n
eed
and
prio
rity
to b
e pr
omot
ed a
s P
PI
Hist
ory
of K
orea
n PP
IH
istor
y of
Kor
ean
PPI
Com
paris
on -
Bef
ore
/ Afte
r 199
8
26.8
mil.
-90
%-
9.05
8.06
Tunn
el B
--
90%
-9.
717.
17Tu
nnel
A
416
mil.
-90
%80
%9.
57.
4Po
rt A
350
mil.
-90
%80
%9.
246.
81Roa
d B
--
90%
80%
9.7
8.89
Roa
d A
Gov
’tSu
bsid
y *Rev
enue
G
uara
ntee
IRR (
real
)*U
SD
Hist
ory
of K
orea
n PP
IH
istor
y of
Kor
ean
PPI
Con
trac
tAw
arde
dPr
ojec
tsC
entr
al
Cen
tral
Gov
Gov
’’ tt:
USD
14
.3
: U
SD 1
4.3
Bil
Bil
in
in
19
pro
ject
s(1
9 p
roje
cts(
’’ 03
.6)
03
.6)
Mun
icip
al G
ov’t
: USD
3.9
Bil.
in 7
9 pr
ojec
ts (’
03.6
)
8.3
(11)
2.7
(4)
3.0
(2)
0.3
(2)
Roa
dH
arbo
rR
ail &
LR
TLo
gist
ics
Un
its
: U
SD B
il.
Proj
ects
unde
rN
egot
iatio
n
Cen
tral
Gov
’t :
USD
5.4
Bil
in
14
pro
ject
s(’0
3.9
)2.
9(6
)
0.6
(3)
1.6
(4)
0.3
(1)
Roa
dH
arbo
rR
ail &
LR
TLo
gist
ics
Un
its
: U
SD B
il.
Mun
icip
al G
ov’t
: USD
935
Mill
ion
in 1
5 pr
ojec
ts(’
03.6
)
For
eign
Inve
stm
ent S
tatis
tics
(Uni
t : U
SD M
illio
n)
14410# of
Pr
ojec
ts
704
515
189
Con
firm
ed
883
179
Tota
l
615
100
Deb
tFi
nanc
e
268
79Eq
uity
Tota
lU
nder
Neg
o
Cha
nge
in P
olic
yG
over
nmen
t Pl
anni
ngPr
ivat
e In
itiat
ive
•Pol
icy
Ori
ente
d Pr
ojec
t Dev
elop
men
t
•Gov
ernm
ent L
ed
Proj
ect D
evel
opm
ent
•Biz
Nee
ds O
rien
ted
Proj
ect D
evel
opm
ent
•Fac
ilita
tion
of
Uns
olic
ited
Proj
ects
Polic
y D
irect
ion
Polic
y D
irect
ion
Cha
nge
in P
olic
yR
estr
ictiv
e R
egul
atio
nSu
ppor
tive
Reg
ulat
ion
•App
rove
d m
etho
ds o
f pr
omot
ion
: BT
O,
BO
O
•Cla
ssifi
catio
n of
type
s of
infr
astr
uctu
re
Une
qual
Tre
atm
ent
•App
rove
d m
etho
ds o
f pr
omot
ion
: All
Typ
es
•Elim
inat
ion
ofcl
assi
ficat
ions
Equ
al T
reat
men
t
Polic
y D
irect
ion
Polic
y D
irect
ion
Elig
ible
Fac
ilitie
s
Roa
dR
oad 33
Rai
lway
Rai
lway 22
Har
bor
Har
bor
33
Ene
rgy
Ene
rgy
33E
nvir
onm
ent
Env
iron
men
t
66D
istr
ibut
ion
Dis
trib
utio
n
33
Cul
ture
Cul
ture
& T
ouri
sm&
Tou
rism
77
Air
port
Air
port
11
Wat
er
Wat
er
Res
ourc
eR
esou
rce
44
Com
mun
iC
omm
uni
-- cat
ion
catio
n22
34 ty
pes o
f inf
rast
ruct
ure
faci
litie
s in
10
cate
gori
es
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Uns
olic
ited
Proj
ects
Proj
ect D
ism
issa
lPr
ojec
t Dis
mis
sal
Proj
ect P
repa
ratio
n &
Sub
mis
sion
Proj
ect P
repa
ratio
n &
Sub
mis
sion
Eval
uatio
n of
Pro
ject
Eval
uatio
n of
Pro
ject
Publ
ic N
otifi
catio
n of
Pro
ject
Publ
ic N
otifi
catio
n of
Pro
ject
(( Mor
e Pr
opos
als
Tend
ered
)M
ore
Prop
osal
s Te
nder
ed)
Eval
uatio
n of
all
Prop
osal
sEv
alua
tion
of a
ll Pr
opos
als
Con
trac
t Aw
ard
to W
inni
ng B
idde
rC
ontr
act A
war
d to
Win
ning
Bid
der
Neg
otia
tion
of C
once
ssio
n A
gree
men
tN
egot
iatio
n of
Con
cess
ion
Agr
eem
ent
(( No
Alte
rnat
ive
Prop
osal
s)N
o A
ltern
ativ
e Pr
opos
als)
Con
trac
t Aw
ard
to In
itial
Bid
der
Con
trac
t Aw
ard
to In
itial
Bid
der
Unq
ualif
ied
Unq
ualif
ied
Proj
ect
Proj
ect
Qua
lifie
d Pr
ojec
tQ
ualif
ied
Proj
ect
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Solic
ited
Proj
ects
Publ
ic N
otifi
catio
n of
Publ
ic N
otifi
catio
n of
Inst
ruct
ion
for P
ropo
sal
Inst
ruct
ion
for P
ropo
sal
Eval
uatio
n of
Pro
posa
lsEv
alua
tion
of P
ropo
sals
Engi
neer
ing
Plan
App
rova
lEn
gine
erin
g Pl
an A
ppro
val
Subm
issi
on o
f Pro
ject
Su
bmis
sion
of P
roje
ct
Prop
osal
sPr
opos
als
Neg
otia
tion
of C
once
ssio
nN
egot
iatio
n of
Con
cess
ion
Agr
eem
ent &
Des
igna
tion
ofA
gree
men
t & D
esig
natio
n of
Con
cess
iona
ireC
once
ssio
naire
Con
firm
atio
n of
C
onfir
mat
ion
of
Proj
ect C
ompl
etio
nPr
ojec
t Com
plet
ion
Proj
ect I
mpl
emen
tatio
nPr
ojec
t Im
plem
enta
tion
Sele
ctio
n of
Priv
ate
Sele
ctio
n of
Priv
ate
Inve
stm
ent P
roje
ct
Inve
stm
ent P
roje
ct
PBC
Con
cern
ed
Min
istr
ies/
(PIC
KO
)
Con
cern
ed
Min
istr
ies
Con
cern
ed
Min
istr
ies
Con
cern
ed
Min
istr
ies/
(PIC
KO
)
Con
cern
ed
Min
istr
ies/
(PIC
KO
)
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Proj
ect F
inan
cing
Crit
eria
FIR
R (r
elat
ive
to)
•B
orro
win
g ra
tes
•R
isk
prem
ium
•C
ompe
titiv
e ra
tes
Gui
delin
e : 1
2~15
% (N
omin
al)
•Ty
pe o
f pro
ject
•Le
vel o
f ris
k
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Land
Acq
uisi
tion
Use
of p
ublic
land
whe
reve
r pos
sibl
e
Gov
ernm
ent a
cqui
sitio
n of
priv
ate
land
prio
r to
conc
essi
on
Use
of e
min
ent d
omai
n w
here
nec
essa
ryto
ena
ble
proj
ect c
once
ssio
naire
toco
mpl
ete
land
acq
uisi
tion
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Rev
enue
Gua
rant
ee
Neg
otia
ted
as p
art o
f Pro
ject
Agr
eem
ent
Bas
ed o
n A
nnua
l Pro
ject
ed R
even
ues
as fo
llow
s:
Solic
ited
Solic
ited
< 90
%<
90%
< 80
%<
80%
> 11
0%>
110%
Prop
onen
t Pr
opon
ent
Reb
ate
Reb
ate
> 12
0%>
120%
Gov
ernm
ent
Gov
ernm
ent
Subs
idy
Subs
idy
Uns
olic
ited
Uns
olic
ited
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Rev
enue
Gua
rant
ee R
evis
ed in
200
3
Gua
rant
ee u
p to
90%
(80%
) of r
even
ue fo
r firs
t fiv
e ye
ars,
80%
(70%
) for
sec
ond
five
year
s, a
nd 7
0%(6
0%) f
or th
ird
five
year
s
Sym
met
ric re
bate
arr
ange
men
t
Sel
f Res
pons
ibili
ty L
imit
of 5
0% is
intro
duce
d : D
iffer
ence
betw
een
50%
and
upp
er li
mit
is g
uara
ntee
d
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
F/X
Ris
k Sh
arin
g
Allo
wab
le fl
uctu
atio
ns o
f ±
20%
Miti
gatio
n m
easu
res
Adj
ustm
ent o
f tar
iffs
Dire
ct o
pera
ting
subs
idie
s
Con
tract
re-n
egot
iatio
n
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
Tax
Ince
ntiv
esN
o ac
quis
ition
and
regi
stra
tion
taxe
s : B
OT
App
licat
ion
of 0
% fo
r val
ue-a
dded
tax
on fa
cilit
ies
and
cons
truct
ion
serv
ices
: B
OT,
BTO
Tax
redu
ctio
n fo
r inf
rast
ruct
ure
bond
s
Red
uctio
n an
d ex
empt
ion
from
var
ious
app
ropr
iatio
n
char
ges
Key
Fea
ture
s of K
orea
n PP
IK
ey F
eatu
res o
f Kor
ean
PPI
PIC
KO
’s F
unct
ions
Rev
iew
and
eva
luat
e so
licite
d an
d un
solic
ited
proj
ect
prop
osal
sA
ssis
t for
eign
inve
stm
ent
Neg
otia
te to
con
clud
e co
nces
sion
agr
eem
ents
Res
earc
h &
form
ulat
e P
PI p
olic
ies
•Cov
ers
2-3
rese
arch
topi
cs e
ach
year
•Ass
ists
MP
B in
pol
icy
mak
ings
Pro
vide
edu
catio
nal p
rogr
ams
•1~2
pro
gram
s a
year
•Priv
ate
sect
or in
divi
dual
s an
d go
vern
men
t offi
cial
s
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
Org
aniz
atio
n
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
Dire
ctor
Advi
sory
Com
mitt
ee
Proj
ect
Team
1(R
oads
and
Har
bors
)15
sta
ff
Proj
ect
Team
2(E
nviro
nmen
tal f
acili
ties,
etc
.)15
sta
ff
Perf
orm
ance
by
Func
tion
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
30
684
6169
7220
Tota
l
264
-10
84
Feas
ibili
ty st
udie
s, et
c.
112
2925
2332
3N
egot
iatio
n &
Con
tract
revi
ew
18-
78
21
Proj
ect p
ropo
sal v
alua
tion
108
3922
1923
5Pr
ojec
t pro
posa
l rev
iew
4212
79
77
RFP
pre
para
tion/
Rev
iew
Tota
l‘0
3‘0
2‘0
1‘0
0‘9
9Fu
nctio
n
Perf
orm
ance
by
Proj
ect T
ype
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
22
20
10
99
03
22
59
8To
tal
35
34
288
627
’03
6-
-1
252
621
’02
33
31
2411
717
’01
912
41
911
323
’00
1-
-2
4-
310
’99
Oth
erAi
rpor
tTo
urLo
gist
icEn
viro
nH
arbo
rRai
lRoa
dYe
ar
PPI P
rese
ntat
ions
in K
orea
Oct
199
9, S
eoul
Org
aniz
ed b
y P
ICK
O
Co-
spon
sore
d by
MP
B, M
OC
T, M
OM
AF,
Wor
ld B
ank
Par
ticip
ants
: Fin
ance
pro
fess
iona
ls, c
onsu
ltant
s,en
gine
ers,
and
con
tract
ors
from
ove
r 10
coun
tries
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
PPI P
rese
ntat
ions
Ove
rsea
sFi
rst R
oad
Sho
w
•Mar
ch 2
000,
Mila
n, P
aris
, Fra
nkfu
rt
Sec
ond
Roa
d S
how
•Jun
e 20
00, T
okyo
Third
Roa
d S
how
•Mar
ch 2
001,
New
Yor
k, C
hica
go, L
A
Four
th R
oad
Sho
w
•Jun
e 20
02, S
ydne
y, T
okyo
, Lon
don,
Hon
g K
ong
Fifth
Roa
d S
how
: N
ovem
ber 2
003,
Sin
gapo
re, H
ong
Kon
g
Intr
oduc
tion
Intr
oduc
tion
of P
ICK
Oof
PIC
KO
Kor
ean
Econ
omy
1,25
0
6.6
3.0
6.0
‘02
1,29
1
7.1
4.1
3.0
‘01
1,13
1
9.4
2.3
9.3
’00
3.1
10.9
-6.7
5.0%
Gro
wth
ra
te
1,19
31,
190
1,39
995
1K
RW
/USD
5.4
8.9
15.1
13.4
%In
tere
st
rate
3.6
0.8
7.5
4.5%
Infl
atio
n ra
te
‘03
’99
’98
’97
Kor
ea P
PI M
arke
t Out
look
Kor
ea P
PI M
arke
t Out
look
Estim
ate
of N
eede
d In
vest
men
t in
Infr
astru
ctur
e
Est
imat
ed in
frast
ruct
ure
inve
stm
ent d
eman
d in
the
10-y
ear p
lan:
US
D 1
53 B
illio
n (U
SD
13
-15.
3 B
illio
n an
nual
ly)
Ant
icip
ated
gov
ernm
ent e
xpen
ditu
re in
infra
stru
ctur
e ov
er th
e pl
an p
erio
d:U
SD
122
.5 -
138.
8 B
illio
n
Kor
ea P
PI M
arke
t Out
look
Kor
ea P
PI M
arke
t Out
look
Priv
ate
Infr
astru
ctur
e In
vest
men
t Nee
ds
Sho
rtage
of U
SD
14.
2 -3
0.5
Bill
ion
(US
D 1
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3.0
Bill
ion
annu
ally
)
Kor
ea P
PI M
arke
t Out
look
Kor
ea P
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arke
t Out
look
Act
ive
parti
cipa
tion
by p
rivat
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ctor
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rgen
tly n
eede
d to
miti
gate
this
sho
rtage
of p
ublic
fund
s
Proj
ects
Lis
ted
in th
e PP
I Pla
n
Tota
l Pro
ject
Cos
t :
USD
48.
4 Bi
llion
36
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2.4
48
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79
Tota
l
14.7
0.7
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20O
ther
Faci
litie
s
1.7
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3.0
89En
viro
nmen
tFa
cilit
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3.2
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5.3
29H
arbo
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6.2
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23Rai
l
10.2
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14.5
18Roa
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ate
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stm
ent
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ernm
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idy
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l Pro
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stN
o. o
f Pr
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(USD
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il.)
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ea P
PI M
arke
t Out
look
Kor
ea P
PI M
arke
t Out
look
Maj
or C
hang
es in
04
Ann
ual P
lan
for
PPI (
1)
•In
du
ce p
en
sio
n f
un
ds
an
d in
sura
nce
co
mp
an
ies
to in
vest
mo
re in
th
e P
PI
pro
ject
s
ㅇIn
crease
eq
uit
y p
art
icip
ati
on
of
pen
sio
n f
un
ds
an
d in
sura
nce
co
mp
an
ies
in t
he in
frast
ruct
ure
fun
ds
in t
he f
utu
re
ㅇIf
fin
an
cial in
vest
ors
' sh
are
of
eq
uit
y is
over
50
%,
min
imu
m e
qu
ity r
eq
uir
em
en
t w
ill b
e
red
uce
d f
rom
25
% t
o 2
0%
Maj
or C
hang
es in
04
Ann
ual P
lan
for
PPI (
2)
•D
ivers
ify e
lig
ible
pro
ject
s to
in
clu
de n
ot
on
ly
larg
e t
ran
spo
rtati
on
in
frast
ruct
ure
bu
t als
o
pu
blic
bu
ild
ing
s, c
ult
ura
l/sp
ort
s fa
ciliti
es,
en
erg
y r
ela
ted
faci
liti
es,
etc
.
ㅇD
ivers
ify d
elivery
meth
od
s fr
om
BTO
, B
OO
to
cover
BTL,
RTL a
lso
Maj
or C
hang
es in
04
Ann
ual P
lan
for
PPI (
3)
•To
in
ten
sify
co
mp
eti
tio
n,
ㅇW
hen
no
co
mp
eti
tive b
idd
ing
is
mad
e,
the
con
cern
ed
au
tho
rity
mu
st in
vit
e r
eb
idd
ing
at
least
on
ce
ㅇIf
pre
ferr
ed
neg
oti
ato
r is
ch
ose
n t
hro
ug
h
com
peti
tio
n,
the r
evie
win
g p
roce
ss b
y N
ati
on
al
Pro
cure
men
t O
ffic
e w
ill b
e e
xem
pte
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ㅇTh
e w
eig
ht
giv
en
to
qu
ality
an
d p
rice
fact
ors
of
pro
ject
pro
po
sal w
ill b
e in
crease
d
Maj
or C
hang
es in
04
Ann
ual P
lan
for
PPI (
4)
•Fo
r o
pti
mal im
ple
men
tati
on
of
PP
I p
roje
cts,
pre
-
feasi
bilit
y s
tud
y w
ill b
e c
arr
ied
ou
t b
efo
re a
ccep
tin
g
un
solici
ted
pro
po
sals
exce
ed
ing
30
0 b
illio
n w
on
•Im
pro
ve t
he a
ccu
racy
of
traff
ic f
ore
cast
ㅇS
urv
ey r
eg
ion
al o
rig
in-d
est
inati
on
tra
ffic
flo
w in
20
05
an
d p
rovid
e t
he D
B b
y 2
00
6
ㅇP
rovid
e m
an
ual fo
r tr
aff
ic f
ore
cast
Maj
or C
hang
es in
04
Ann
ual P
lan
for
PPI (
5)
•S
imp
lify
PP
I im
ple
men
tati
on
pro
cess
an
d s
ho
rten
th
e
tim
e p
eri
od
ㅇR
esp
ect
bu
sin
ess
co
nd
itio
ns
if t
he p
rop
osa
l
un
derg
oes
eff
ect
ive c
om
peti
tio
n t
o m
inim
ize
neg
oti
ati
on
tim
e,
start
en
vir
on
men
t im
pact
an
aly
sis
earl
ier
Con
tribu
tion
to N
atio
nal B
alan
ced
Gro
wth
Con
tribu
tion
to th
e Lo
w In
com
e G
roup
Whi
ch F
acili
ties O
pene
d to
PPI
Why
PPI
? F
inan
ce v
s Eff
icie
ncy
Oth
er C
omm
ents
and
Que
stio
ns
Issu
es fo
r Disc
ussio
nIs
sues
for D
iscus
sion
Than
k Yo
u V
ery
Muc
h
Buildin
g a
Glo
bally
Buildin
g a
Glo
bally
Com
petitive
Com
petitive
Tra
nsport
Netw
ork
Tra
nsport
Netw
ork
Tra
nsportation S
ecto
r (2
000
Tra
nsportation S
ecto
r (2
000--2020)
2020)
The F
ourth N
ational C
om
pre
hensiv
e T
erritorial Pla
nThe F
ourth N
ational C
om
pre
hensiv
e T
erritorial Pla
n
Pre
pare
d for KO
ICA P
rogra
m b
y H
eung S
oo
Kim
KRIH
S,
22 O
cto
ber 2004
KRIHS
KRIHS
Conte
nts
Conte
nts
1. T
rends a
nd P
rospects
2. O
utlook f
or
Change
3. M
ajo
r G
oals
and Im
ple
menta
tion
Pla
n
KRIHS
KRIHS
1.
1. T
rends a
nd P
rospects
Tre
nds a
nd P
rospects
1)
Curr
ent
Sta
tus a
nd P
roble
ms
Short
age o
f tr
ansport
ation f
acilitie
s d
ue t
o lack
of
investm
ent
Roads, ra
ils, harb
ors
, air
port
s :
all e
xperi
encin
g
bott
lenecks, im
pedin
g n
ational econom
ic g
row
th
Supply
of
infr
astr
uctu
re h
as f
allen b
ehin
d f
ast-
gro
win
g
transport
dem
and
In t
he 8
0’s
absolu
te investm
ent
am
ount
was s
mall
(2%
of
GD
P)
In t
he 9
0’s
investm
ent
allocation w
as inappro
pri
ate
KRIHS
KRIHS
Weak inte
ractive c
onsid
era
tion o
f re
gio
nal
develo
pm
ent,
transport
netw
ork
, tr
ansport
modes
Investm
ent
cente
red a
round m
etr
opolita
n a
reas
and S
eoul-
Pusan
corr
idor
Tra
nsport
ation n
etw
ork
alo
ng E
ast-
West
axis
is
rela
tively
weak c
om
pare
d t
o S
outh
-N
ort
h a
xis
Inste
ad o
f a c
om
pre
hensiv
e s
olu
tion, a p
oin
t
specific
rem
edy w
as p
rescri
bed, cre
ating n
ew
bott
lenecks
Secto
r-specific
investm
ent
resulted in w
eak
coord
ination a
mong t
ransport
modes
KRIHS
KRIHS
Dete
riora
ting e
nvir
onm
ent
and s
afe
ty
38%
of
larg
e c
ity a
ir p
ollution is v
ehic
ula
r
Surg
e in h
um
an a
nd p
ropert
y losses f
rom
auto
accid
ents
(1997: 12,0
00 d
eath
s)
Death
s p
er
100,0
00: U
.S. 15.6
, Ja
pan 8
.5, K
ore
a 2
7.7
Ineff
ective o
pera
tion a
nd r
egula
tions
Insuff
icie
nt
use o
f tr
aff
ic info
rmation, etc
. to
optim
ize f
acility u
se
Facility p
rovis
ion f
rom
supplier
poin
t of
vie
w
Regula
tions t
hat
com
plicate
eff
icie
nt
supply
KRIHS
KRIHS
2)
Outlook f
or
Change
Continuin
g incre
ases in t
raff
ic d
em
and
Car
ow
ners
hip
expecte
d t
o c
lim
b t
o d
evelo
ped
countr
y s
tandard
s (
1 c
ar
per
2 p
ers
ons)
Ris
ing incom
es, in
dustr
ial div
ers
ific
ation
incre
ase p
assenger,
carg
o d
em
and
Incre
asin
g N
/S K
ore
a e
xchanges e
xpecte
d t
o
rais
e t
raveling d
ista
nces a
nd t
raff
ic
Dom
estic
pas
seng
er 1
Dom
estic
car
go 2
Inte
rnat
iona
l pa
ssen
ger
1
Inte
rnat
iona
l ca
rgo
2
236,
943
138,
189
74,5
70
4,18
0,27
2
408,
545
269,
480
324,
595
9,34
7,83
3
2.4
2.9
6.6
3.6
1997
2020
Ann
ual g
row
th (%
)T
raff
ic ty
pe
Tra
ffic
D
eman
d Pr
ojec
tions
1m
illio
ns o
f pas
seng
er m
iles
2m
illio
ns o
f ton
mile
s
KRIHS
KRIHS
Glo
baliza
tion o
f E
conom
ic a
ctivitie
s
Inte
rnationaliza
tion o
f in
dustr
y, libera
liza
tion
Gro
wth
in N
ort
heast
Asia
n c
oopera
tion
Dem
and f
or
Upgra
din
g, “g
reenin
g”
of
facilitie
s
New
technolo
gy d
evelo
pm
ents
: IT
S, m
ag-ele
v
train
s, ST
OL p
lanes, etc
.
Reduction o
f w
ork
tra
ffic
thro
ugh info
rmatiza
tion
and incre
ase in leis
ure
tra
vel
Energ
y c
onserv
ation, pollution c
ontr
olled
develo
pm
ent
of
new
modes o
f tr
ansport
KRIHS
KRIHS
Incre
asin
g r
ecognitio
n o
f agin
g s
ocie
ty
and C
onsid
era
tion f
or
the H
andic
apped
Ris
e in d
em
ands f
or
traff
ic info
rmation a
nd
door-
to-door
serv
ice f
or
eld
erl
y
Pro
jecte
d g
row
th in d
em
and f
or
facilitie
s
and s
erv
ices f
or
handic
apped, childre
n
KRIHS
KRIHS
2.
2. O
utlook f
or
Change
Outlook f
or
Change
1)
Rational m
odal allocation o
f tr
aff
ic d
em
and
2)
Nationw
ide inte
gra
ted t
ransport
ation s
yste
m
3)
Inte
rnational tr
ansport
infr
astr
uctu
re t
o b
ecom
e“G
ate
way t
o N
ort
heast
Asia
”4)
Safe
ty-ori
ente
d, envir
onm
ent-
frie
ndly
facilitie
s
5)
Low
er
cost
transport
netw
ork
to incre
ase
investm
ent
eff
icie
ncy
Aim
For
Glo
bally Inte
gra
ted
Com
pre
hensiv
e t
ransport
netw
ork
KRIHS
KRIHS
3.
3. M
ajo
r G
oals
and
Majo
r G
oals
and
Imple
menta
tion P
lan
Imple
menta
tion P
lan
1)
Rational M
odal A
llocation o
f T
raff
ic D
em
and
Dem
and a
llocation r
ecogniz
ing
chara
cte
ristics
of
diffe
rent
modes o
f tr
ansport
Em
phasis
on r
oads f
or
short
passenger
trip
s,
railw
ays f
or
long-haul carg
o
Pri
ori
ty t
o m
ain
road n
etw
ork
com
ple
tion, th
en
late
r sta
ge o
f th
e p
lan, expand r
ailw
ay n
etw
ork
Incre
ase in a
irport
investm
ent
to h
andle
mediu
m
and long-dis
tance d
em
and in t
he inte
rim
KRIHS
KRIHS
2020
Dom
estic
Tra
nspo
rt D
eman
d
Sea
Air
Rai
l
Roa
d
< K
ey >
Pass
enge
r
1997
Pass
enge
r-K
m o
r T
on-K
m (%
)
Car
go
2020
4.0% 88.2
%
0.2%
7.6%
5.1%
75.1
%
0.3%
19.5
%
0.1%
56.6
%
32.8
%
10.5
%11.3
%
47.1
%
41.2
%
0.4%
KRIHS
KRIHS
Hie
rarc
hia
ldevelo
pm
ent
of
air
port
s a
nd
harb
ors
to f
orm
“G
ate
way t
o N
ort
heast
Asia”
Incheon
Inte
rnational A
irport
handle
glo
bal
dem
and, re
gio
nal hub-spoke a
irport
syste
m s
upport
mediu
m t
o s
hort
dis
tance o
vers
eas t
ravel
Pusan-G
wangyang
mega-hub p
ort
s h
andle
tra
nsit
carg
os a
nd m
ajo
r im
port
/export
, re
gio
nal port
s f
or
mediu
m-
and s
hort
-haul dom
estic a
nd int’l
carg
o
KRIHS
KRIHS
Incre
ased investm
ent
for
inte
rmodal
transport
linkages a
nd h
igh-eff
icie
ncy
facilitie
s
Inte
gra
ted t
ransport
syste
ms a
t key t
ransport
facility p
oin
ts s
uch a
s p
ort
s a
nd industr
ial
com
ple
xes
Metr
opolita
n t
ransport
netw
ork
lin
kin
g r
oad a
nd
rail n
etw
ork
s
Phased p
repara
tion f
or
N-S K
ore
a e
xchange
Initia
lly h
arb
or/
air
port
lin
kages, th
en r
oad lin
ks
Ultim
ate
goal of
Eura
sia
lin
kin
g n
etw
ork
KRIHS
KRIHS
Nat
ionw
ide
30-m
inut
e ac
cess
to c
ore
tran
spor
t net
wor
k
2)
Nationw
ide inte
gra
ted t
ransport
ation
syste
m
Roads
Inte
gra
ted r
oad n
etw
ork
pla
n f
or
expre
ssw
ays
and n
ational ro
ads t
o p
rovid
e b
asis
for
long-
term
develo
pm
ent
of
national te
rritory
Expre
ssw
ays
7 s
outh
-nort
h a
nd 9
east-
west
expre
ssw
ays t
o
reflect
transport
dem
and a
nd b
ala
nced d
evelo
pm
ent
Inte
gra
tion o
f m
etr
opolita
n b
eltw
ays into
core
national ro
ad n
etw
ork
KRIHS
KRIHS
National ro
ads
Reduction in logis
tics c
osts
and p
assenger
dis
com
fort
thro
ugh c
ontinuous c
onstr
uction o
f national
roads a
nd a
llevia
tion o
f bott
lenecks
In p
art
icula
r, c
onstr
uction o
f over
2,0
00 k
m o
f
altern
ate
roads f
or
tow
ns, to
wnship
s, and c
ounties t
o
reduce inte
raction o
f lo
cal and p
ass-th
rough t
raff
ic
Com
ple
tion b
y 2
020 o
f national ro
ad n
etw
ork
:
87,0
00 k
m (
curr
ent)
to 2
00,0
00 k
m
Expre
ssw
ays -
1,9
00 k
m →
6,1
00 k
m
National ro
ads -
12,5
00 k
m →
19,0
00 k
m
Nat
iona
l Hig
hway
Net
wor
k Pl
an
Key E
xist
ing
Plan
ned KRIHS
KRIHS
Mai
n N
etw
ork
Acc
ess
Roa
ds (1
999)
Mai
n N
etw
ork
Acc
ess
Roa
ds (2
020)
KRIHS
KRIHS
No
Exp
ress
way
s w/i
30 m
inut
es d
ista
nce
KRIHS
KRIHS
Railw
ays
Gra
dual in
cre
ase in u
se o
f ra
ilro
ads t
hro
ugh
expansio
n a
nd im
pro
vem
ent
Hig
h-speed r
ail n
etw
ork
expansio
n
Seoul-
Pusan
Hig
h-Speed L
ine c
om
ple
tion in 2
010
Ste
ady p
rogre
ss o
n H
onam
Hig
h-Speed L
ine t
o
accom
modate
West
Coast
develo
pm
ent
needs
Double
-tr
ackin
g a
nd e
lectr
ific
ation o
f exis
ting
lines, connection t
o h
igh-speed n
etw
ork
In t
he longru
nconnect
to N
ort
heast
Asia
rail
netw
ork
KRIHS
KRIHS
Expansio
n o
f re
gula
r ra
il n
etw
ork
Str
aig
hte
nin
g, double
-tr
ackin
g, ele
ctr
ific
ation o
f
exis
ting lin
es t
o incre
ase c
apacity, usefu
lness
Double
-tr
ackin
g, ele
ctr
ific
ation o
f G
yeongbu,
Honam
, Je
olla, Ju
ngang, C
hoongbook
Renovation a
nd e
xte
nsio
n o
f G
yeongje
on, G
yeongchun,
Janghang
lines
Lin
kage o
f N
E C
apital A
rea a
nd G
wangyang
Port
thro
ugh c
onstr
uction o
f A
san
~ C
apital A
rea lin
e
Constr
uction, expansio
n o
f E
ast
Coast
lines,
Gyeongui, G
yeongw
on, M
t. K
eum
gang
lines f
or
Nort
h –
South
rela
tions
KRIHS
KRIHS
Develo
pm
ent
of
Wonju
~ G
angneung
and o
ther
east-
west
lines f
or
East-
West
transaction,
bala
nced r
egio
nal develo
pm
ent
Constr
uction o
f in
dustr
ial ra
il n
etw
ork
for
DaebulIn
dustr
ial C
om
ple
x;
and A
san, G
unja
ng,
Gw
angyang, and B
usan
port
s
By 2
020, expand r
ail e
xte
nsio
n b
y 4
0%
to 4
,200 k
m
double
-tr
ackin
g incre
ased b
y 2
.6 t
imes t
o 7
4%
ele
ctr
ific
ation incre
ased b
y 4
tim
es t
o 8
5%
Reg
ular
Ele
ctri
fied
Hig
h-sp
eed
New
Mod
ifica
tion
Key
KRIHS
KRIHS
Rai
l Net
wor
k Pl
an
KRIHS
KRIHS
Port
s
Develo
pm
ent
of
Pusan, G
wangyang
Port
into
larg
e-scale
hub p
ort
Consid
er
com
bin
ed a
dm
inis
tration o
f th
e t
wo p
ort
s t
o
incre
ase c
om
petitiveness, fa
cilitate
ease o
f use
Expand Incheon, A
san, G
unja
ng, M
okpo, M
asan,
Uls
an, Pohang, G
angw
on
port
s a
s r
egio
nal hubs
Constr
uction o
f N
ort
h Incheon, M
okpo
New
Oute
r,
Uls
an
New
, Pohang
Yeongil
New
port
s
Ongoin
g c
onstr
uction o
f Pyeongta
ek
(Asan)
and
Gunja
ng
port
s, re
novation o
f In
cheon
South
, M
okpo
and o
ther
port
s t
o im
pro
ve e
ffic
iency
KRIHS
KRIHS
Expansio
n o
f lo
cal port
s
Constr
uction o
f B
ory
eong
New
Port
, re
novation o
f
exis
ting p
ort
s (
East
Sea, Je
ju, etc
.)
Stu
dy p
ossib
ility o
f Saem
angeum
New
Port
in
rela
tion t
o S
aem
aengum
recla
mation p
roje
ct
Rais
e e
ffectiveness o
f harb
ors
by f
unctional
diffe
rentiation
Tra
nsfo
rmation o
f port
s into
Thir
d G
enera
tion
logis
tics c
ente
rs b
y inte
gra
ting t
ransport
,
logis
tics, and info
rmation n
etw
ork
s
Har
bor M
ap
Key Loc
al p
ort
Hub
por
t
Mai
n po
rt
New
por
t KRIHS
KRIHS
KRIHS
KRIHS
Air
port
s
Incheon
Inte
rnational A
irport
, opened in 2
001,
to b
ecom
e N
E A
sia
hub b
y 2
020
Constr
uction a
nd e
xpansio
n o
f lo
cal hubs t
o
meet
dem
and f
or
short
er
inte
rnational flig
hts
Cap
ital A
rea
Bus
an
Dae
gu
Cen
tral
Hon
am
Yeo
ngdo
ng
Jeju
Gim
hae
Air
port
new
run
way
and
inte
rnat
iona
l pas
seng
er te
rmin
al
Che
ungj
uA
irpo
rt e
nhan
cem
ent t
hrou
gh fo
unda
tion
cons
truc
tion
Yan
gyan
gN
ew A
irpo
rt c
onst
ruct
ion
Gim
poA
irpo
rt u
pgra
de a
nd u
se a
s mai
n do
mes
tic h
ub
Dae
guA
irpo
rt n
ew m
oori
ng fi
eld
and
inte
rnat
iona
l pas
seng
er te
rmin
al
Mua
nN
ew A
irpo
rt c
onst
ruct
ion
Jeju
Air
port
maj
or fa
cilit
y ex
pans
ion
to h
andl
e in
tern
atio
nal t
ouri
sts
KRIHS
KRIHS
Expansio
n o
f lo
cal air
port
s
Uls
an, Sacheon, Pohang, Y
echeon, Y
eosu, etc
.
air
port
expansio
ns
Curr
ent
feasib
ility s
tudy o
n d
em
and f
or
Cheonju
Air
port
, constr
uction o
f light
pla
ne a
irfield
at
Uljin
Develo
pm
ent
of
short
and m
ediu
m-haul ro
ute
s
for
sm
all a
nd m
ediu
m p
lanes, helicopte
rs t
o
enhance inte
rcity t
ransport
, coasta
l to
uri
sm
Expansio
n o
f flig
ht
and a
ir t
raff
ic c
ontr
ol
functions, and m
ajo
r overh
aul of
flig
ht
safe
ty
Pla
nnin
g t
o e
nhance f
acility c
onvenie
nce
Key Loc
al a
irpo
rt
Hub
air
port
Mai
n ai
rpor
t
New
air
port KRIHS
KRIHS
Airp
ort M
ap
KRIHS
KRIHS
Logis
tics
“National hubs =
> L
ocal hubs =
> C
onsum
er”
netw
ork
constr
uction(H
ub
& S
poke)
Buildin
g o
f key n
ational lo
gis
tics h
ubs
Capital A
rea, B
usan
and G
wangyang
Port
s a
re
national lo
gis
tic h
ubs :
Expand IC
Ds
and inte
gra
ted
carg
o t
erm
inals
, carg
o h
andling f
acilitie
s
Centr
al·Y
eongnam·H
onam
inla
nd h
ub e
xpansio
ns
Constr
uction o
f in
land ~
coasta
l netw
ork
Logis
tics c
ente
r netw
ork
of
10 r
egio
ns, 38 h
ubs
Com
peting, com
ple
menting IC
Ds
and inte
gra
ted
carg
o t
erm
inals
KRIHS
KRIHS
Lin
kin
g o
f hub p
ort
s a
nd h
ub a
irport
s t
o
handle
Nort
heast
Asia
tra
ffic
thro
ugh S
ea-
Air
inte
gra
ted t
ransport
syste
m
Incheon
Port
& A
irport
, B
usan
Port
~ G
imhae
Air
port
, etc
.
Info
rmatiza
tion, m
odern
ization o
f lo
gis
tics
industr
y
Reduction o
f lo
gis
tics c
osts
fro
m 1
6.5
% o
f G
DP
to d
evelo
ped c
ountr
y level of
10%
by 2
020
Key
Mai
n fa
cilit
y
Log
istic
s cen
ter
KRIHS
KRIHS
Logi
stic
s Fac
ilitie
s Map
KRIHS
KRIHS
Tra
nsport
ation n
etw
ork
support
ing
develo
pm
ent
str
ate
gy f
or
new
terr
itori
al
axes, bala
nced r
egio
nal develo
pm
ent, e
tc.
Constr
uction o
f ro
ad n
etw
ork
lin
kin
g m
ajo
r
transport
hubs t
o s
pur
local develo
pm
ent
Active s
upport
of
regio
nal develo
pm
ent
pla
ns
Cre
ation o
f E
ast
-W
est
transport
netw
ork
East
-W
est
hubs, E
ast
-W
est
coasta
l linkages
Wonju
~ G
angneung
rail lin
e, E
-W
axes o
f 7 x
9
road n
etw
ork
A tr
ansp
ort n
etw
ork
to le
ad r
egio
nal d
evel
opm
ent
KRIHS
KRIHS
Local cultura
l and n
atu
re d
evelo
pm
ent
Impro
ved a
ccess t
o h
isto
rical, t
ouri
st,
traditio
nal, c
ultura
l sites
South
west
coast
isla
nds d
evelo
pm
ent
thro
ugh
bri
dges, ra
il lin
es, heli-pad, etc
.
Str
ate
gic
industr
ial are
a s
upport
Tra
nsport
netw
ork
syste
m e
nhancem
ent
for
Specia
l E
conom
ic Z
ones
Support
for
transport
facilitie
s t
o p
rom
ote
develo
pm
ent
of
dis
advanta
ged r
egio
ns
KRIHS
KRIHS
Road a
nd r
ail e
nhancem
ent
pla
ns
Majo
r in
cre
ase in h
igh-speed t
ransport
capacity f
or
larg
e c
itie
s t
hro
ugh c
onstr
uction
of
cir
cula
tory
expre
ssw
ays, art
eri
al ro
ad
latt
ice n
etw
ork
s
Incre
ase in u
rban r
ailw
ay c
apacity t
hro
ugh
intr
oduction o
f div
ers
e s
erv
ices s
uch a
s
expre
ss t
rain
s
A b
ette
r tr
ansp
ort s
yste
m to
ref
lect
m
etro
polit
an g
row
th o
f lar
ge c
ities
KRIHS
KRIHS
New
facilitie
s t
o h
andle
tra
nsfe
r dem
and
Incre
ase in c
onstr
uction o
f tr
ansfe
r park
ing
lots
and inte
gra
ted t
ransfe
r cente
rs
More
eff
ective im
ple
menta
tion s
yste
m
thro
ugh m
etr
o t
raff
ic a
dm
inis
tration
Coopera
tive s
yste
ms w
ith n
eig
hbori
ng local
govern
ments
Str
ength
enin
g o
f counte
rmeasure
s f
or
facilitie
s t
hat
gre
atly incre
ase t
raff
ic d
em
and
KRIHS
KRIHS
3)
Inte
rnational tr
ansport
infr
astr
uctu
re t
o
becom
e “
Gate
way t
o N
ort
heast
Asia”
Cultiv
ation o
f In
cheon
Inte
rnational A
irport
as c
entr
al N
E A
sia
air
port
Develo
pm
ent
of
Incheon’s
inte
gra
ted p
ort
, IT
,
logis
tics, busin
ess a
nd leis
ure
facilitie
s
Larg
e-scale
conta
iner
port
develo
pm
ent
Busan
~ G
wangyang
port
s d
evelo
ped into
centr
al port
s f
or
NE
Asia
Pla
n f
or
NE
Asia
-linked r
ail n
etw
ork
2 N
-S (
Mokpo-Seoul-
Shin
uiju, B
usan-Seoul-
Cheongjin)
route
s lin
ked t
o T
CR
, T
SR
, T
AR
KRIHS
KRIHS
Rus
sia
Chi
na
Japa
n
The
Paci
fic
Road n
etw
ork
expansio
n f
or
N-E
rela
tions
Pri
ori
ty c
onnection o
f 6 s
evere
d N
ational
Roads inclu
din
g #
1 (
Fre
edom
Bri
dge -
Panm
unje
om
) and #
7 (
Goseong
-H
yuje
onseon)
Eventu
al pla
n f
or
7 N
ort
h-South
art
eri
al ro
ads,
connection t
o A
sia
n H
ighw
ay
Coasta
l tr
ansport
netw
ork
with N
K p
ort
s
Inte
rnational m
ari
ne t
ransport
netw
ork
with
main
port
s o
f neig
hbors
such a
s R
ussia
, C
hin
a
KRIHS
KRIHS
Long-te
rm p
lans t
o b
ecom
e s
ea a
nd land-
linked t
ransport
cente
r of
NE
Asia
Logis
tics c
ente
r fo
r E
uro
pe (
pop. 320 m
illion)
Rott
erd
am
Port
(conta
iners
), S
chip
holA
irport
(passenger
and c
arg
o)
connect
to r
oads, ra
il, coasta
l and inla
nd
transport
to a
ll p
art
s o
f E
uro
pe
20%
of
carg
o is t
ransit c
arg
o t
o E
ngla
nd a
nd S
candin
avia
,
80%
is im
port
s t
o c
ontinenta
l E
uro
pe
Neth
erl
ands:
Euro
pean G
ate
way
KRIHS
KRIHS
NE
Asi
a Lo
gist
ics C
ente
r Pla
n
KRIHS
KRIHS
4)
Safe
ty-ori
ente
d, envir
onm
ent-
frie
ndly
facilitie
s
Tra
ffic
syste
ms t
o r
ais
e c
itiz
en s
afe
ty
Hig
hest
pri
ori
ty c
onsid
era
tion f
or
safe
ty in
pla
nnin
g t
ransport
syste
ms
Desig
nation o
f haza
rdous m
ate
rial tr
ansport
pro
hib
ited z
ones, tr
ansport
guid
elines
Develo
pm
ent
of
em
erg
ency d
isaste
r re
lief
syste
ms
KRIHS
KRIHS
Tra
nsport
policy f
or
eld
erl
y, le
ss m
obile
Develo
pm
ent
of
new
syste
ms s
uch a
s t
raff
ic
info
rmation f
acilitie
s f
or
old
er
dri
vers
Expanded f
acilitie
s s
uch a
s c
rossw
alk
s,
ele
vato
rs f
or
handic
apped a
nd e
lderl
y
Envir
onm
ent-
frie
ndly
tra
ffic
syste
ms
Consid
era
tion o
f envir
onm
ent, s
cenery
, bio
aspect
when c
onstr
ucting r
oads, ra
ilro
ads
Pollution r
eduction t
hro
ugh incre
ased u
se o
f
railro
ads, develo
pm
ent
of
cle
aner
fuels
, etc
.
Long-te
rm s
trength
enin
g o
f pollution
dis
charg
e sta
ndard
s t
hro
ugh n
ew
Cle
an A
ir A
ct
KRIHS
KRIHS
Str
onger
traff
ic d
em
and m
anagem
ent
Short
-te
rm p
olicy r
eduction o
f passenger
car
use t
hro
ugh t
raff
ic t
axes, congestion f
ees, etc
.
Public t
ransport
ation-cente
red s
yste
m
Expansio
n o
f hig
h-speed t
ransport
altern
atives t
o
reduce p
assenger
car
use
Support
for “g
reen”t
ransport
(e.g
. bic
ycle
s)
for
short
tri
ps
In t
he long-ru
n, m
inim
ize d
aily t
raff
ic b
y c
ity
land u
se p
lan, etc
.
KRIHS
KRIHS
5)
Low
er-
cost
transport
netw
ork
to
incre
ase investm
ent
eff
icie
ncy
Tra
nsport
technolo
gy R
&D
and s
upport
Road u
se m
axim
ization t
hro
ugh info
rmatiza
tion
of
transport
facilitie
s, m
ain
tenance c
ost
min
imiz
ation t
hro
ugh IT
S
Sta
ndard
ization o
f tr
aff
ic info
rmation
Support
and d
evelo
pm
ent
of
Kore
an h
igh-
speed t
rain
s, m
ari
tim
e t
raff
ic c
ontr
ol syste
m,
sate
llite n
avig
ation s
yste
ms
KRIHS
KRIHS
Tra
nsport
facility investm
ent
eff
icie
ncy
Inte
gra
ted investm
ent
managem
ent
Unify g
overn
ment
facility investm
ent
pla
ns f
or
each m
ode o
f tr
ansport
Investm
ent
pri
ort
ized
consid
eri
ng b
oth
eff
icie
ncy
and b
ala
nced r
egio
nal gro
wth
Rais
ing e
ffectiveness o
f fa
cility investm
ent
Pre
para
tion o
f in
vestm
ent
pri
ori
ty e
valu
ation a
nd
fund a
llocation s
yste
ms f
or
pro
ject
sele
ction
Focus o
n investm
ent
off
eri
ng larg
est
benefits
Evalu
ation a
nd c
onsid
era
tion o
f curr
ent
pro
ject
results in f
und a
llocation p
rocess
KRIHS
KRIHS
Researc
h into
expanded f
inancin
g m
eth
ods
such a
s g
asoline t
axes, adju
ste
d u
ser
fees,
pri
vatiza
tion, constr
uction c
ost
savin
gs, etc
.
Tot
al In
vest
men
t( %
)34
4(1
00.0
)
Mod
e of
Tra
nspo
rtR
oad
Rai
lA
irPo
rtL
ogis
tics
Tot
al
196
(57.
1)73 (21.
3)16 (4.5
)38 (11.
1)20 (6.0
)
Inclu
din
g o
pera
tion, m
ain
tenance, R
&D
, etc
., t
ota
l pro
jecte
d
KR
W 3
78 t
rillio
n (
~2.6
% o
f G
DP)
Govern
ment
contr
ibutions u
nder
KD
I gro
wth
pro
jections
am
ount
to K
RW
344 t
rillio
n, w
ith t
he b
ala
nce t
o c
om
e f
rom
incre
ased b
udgeta
ry e
ffort
or
pri
vate
investm
ent
<Tab
le>
Proj
ecte
d In
vest
men
t Dem
ands
for
4th
Plan
(200
0-20
20)
Uni
t: K
RW
trill
ion
KRIHS
KRIHS
Tra
nsport
restr
uctu
ring, pri
vatiza
tion
Intr
oduction o
f pri
vate
secto
r cre
ativity,
eff
icie
ncy into
tra
nsport
facilitie
s
Part
ial pri
vatiza
tion p
olicy o
f govern
ment
constr
uction, pri
vate
secto
r opera
tion,
adm
inis
tration a
nd m
ain
tenance
In s
om
e c
ases, fu
ll p
rivatiza
tion t
hro
ugh s
ale
Regula
tory
refo
rm, dere
gula
tion
Intr
oduction o
f fa
ir c
om
petitive s
yste
ms b
y
rem
ovin
g r
egula
tory
barr
iers
to p
rom
otion o
f
pri
vate
part
icip
ation, m
ark
et
entr
ance o
f new
industr
ies, pri
ce a
nd s
erv
ice s
tandard
s
KRIHS
KRIHS
Att
raction o
f pri
vate
capital
Pri
ori
ty s
tudy o
f pri
vate
capital fo
r hig
h-pro
fit
pro
jects
Active p
rom
otion o
f pri
vate
investm
ent
for
roads,
metr
o s
ubw
ays, hub a
irport
s, port
facilitie
s,
public
transport
ation, etc
.
Esta
blishm
ent
of
bid
din
g, concessio
n s
yste
ms
incorp
ora
ting inte
rnational best
pra
ctice
•Seam
less tra
nsport s
yste
m
with rational traff
ic p
artitio
nin
g
•N
ationw
ide inte
rconnecte
d
transport n
etw
ork
•In
tern
ational transport infrastructu
re
to b
ecom
e “
Gate
way
to N
E A
sia
”•
People
-cente
red, envi
ronm
ent-
frie
ndly
polic
y
•Low
er cost m
odels
to incre
ase
inve
stm
ent eff
icie
ncy
•Seam
less tra
nsport s
yste
m
with rational traff
ic p
artitio
nin
g
•N
ationw
ide inte
rconnecte
d
transport n
etw
ork
•In
tern
ational transport infrastructu
re
to b
ecom
e “
Gate
way
to N
E A
sia
”•
People
-cente
red, envi
ronm
ent-
frie
ndly
polic
y
•Low
er cost m
odels
to incre
ase
inve
stm
ent eff
icie
ncy
RO
K, Kore
an P
enin
sula
, N
E A
sia
RO
K, Kore
an P
enin
sula
, N
E A
sia
Supply
, safe
ty, envi
ronm
ent, e
ffic
iency
Supply
, safe
ty, envi
ronm
ent, e
ffic
iency
Tra
ffic·L
ogis
tics
/ IT
Tra
ffic·L
ogis
tics
/ IT
44thth
National T
err
itori
al Pla
nN
ational T
err
itori
al Pla
n
““ Glo
bal
Glo
bal --
villa
ge
villa
ge
”” --in
tegra
ted
inte
gra
ted
transport
ation n
etw
ork
transport
ation n
etw
ork
•D
ecentraliz
ation a
nd e
nhanced
qualit
y of lif
e thro
ugh tra
ffic
sys
tem
•Support for consta
nt econom
ic
gro
wth
and reduction o
f bottle
necks
thro
ugh facili
ty e
xpansio
n
•Faste
r, s
tandard
ized tra
nsport to
incre
ase tra
nsport e
ffic
iency
and
pre
pare
for glo
baliz
ation
•D
ecentraliz
ation a
nd e
nhanced
qualit
y of lif
e thro
ugh tra
ffic
sys
tem
•Support for consta
nt econom
ic
gro
wth
and reduction o
f bottle
necks
thro
ugh facili
ty e
xpansio
n
•Faste
r, s
tandard
ized tra
nsport to
incre
ase tra
nsport e
ffic
iency
and
pre
pare
for glo
baliz
ation
Prim
arily
South
Kore
aPrim
arily
South
Kore
a
Supply
, eff
icie
ncy,
dem
and c
ontrol
Supply
, eff
icie
ncy,
dem
and c
ontrol
Tra
ffic
/ L
ogis
tics /
IT
Tra
ffic
/ L
ogis
tics /
IT
Com
pre
hensiv
e h
igh
Com
pre
hensiv
e h
igh--speed
speed
transport
ation n
etw
ork
transport
ation n
etw
ork
33rd
National T
err
itori
al Pla
nrd
National T
err
itori
al Pla
n
Subje
ct
Subje
ct
Geogra
phy
Geogra
phy
Genera
lG
enera
lD
irection
Dir
ection
Str
ength
sStr
ength
s
Com
positio
nC
om
positio
n
Com
pari
son w
ith 3
rd T
err
itori
al Pla
nC
om
pari
son w
ith 3
rd T
err
itori
al Pla
n
KRIHS
KRIHS
Issues f
or
Dis
cussio
n
Eff
icie
ncy(C
oncentr
ation)
vs
National
Bala
nced G
row
th
Optim
al In
frastr
uctu
re P
olicy :
Com
ments
on K
ore
an P
olicy a
nd O
ther
Countr
ies
Road v
sR
ail, A
irport
vs
Seaport
Optim
al In
frastr
uctu
re Investm
ent
Am
ount
Oth
er
Com
ments
and Q
uestions
