Busan is good

Construction at New Busan Port is Opening Up of Private Investments

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An infra-fund aimed at luring private investment in social overhead capital (SOC) will be introduced this year. According to this action, private enterprise can invest capital in the construction of Busan’s new port facilities and Inchon’s new express highway.

On April 12 according to the Ministry of Finance and Economy, the government is scheduled to revise both the private investment law and the indirect investment asset law. Currently the infra-fund law limits the amount private enterprises can invest in a single project to no more than 10%. Therefore, amounts of several trillion cannot be invested in SOC. The Budget Division plans to abandon the 10% limit and to allow the private sector unlimited investment in SOC projects. The Ministry of Finance and Economy also intends to compliment the current management of indirect investment assets by which individuals can invest their capital in SOC business. It is expected that once this infra-fund system is adopted much floating capital will flock to it.

If the Government manages this new law skillfully, the law would remedy the stagnant economy in the long-term. This law will also drive a large number of dormant capital into an activate economy.

The source of news : Busanilbo, Wednesday April 14, 2004, 8:23