Abstract

In the last decade, the Korean government has faced with reducing budgets for necessary infrastructure constructions. As a reason, private investment was introduced for overcoming this circumstance. Private investment called as joint venture is effective and efficient method to implement infrastructure projects in Korea due to budget constraints of the government. In order to vitalize private investment, certain level of profits from investments should be guaranteed. Nevertheless proper rate of return has not been defined yet because of fluctuating economic indicators and uncertain expectation of economic condition in future. Therefore, this study proposed the proper rate of return for private investment to infrastructure projects in Korea using three approaches such as estimate from existing private investment s, various economic indicators and rate of returns on financial investments.

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