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A Study on the Promotion of Public-Private Partnership in Seoul’s Life SOC

Kim, Dong-SungㆍKim, Bum-SikㆍHeo, Ja-YunㆍJoo, Jae-HongㆍShin, Hyung-JoonㆍLee, Seoung-YongㆍLee, Ju-HyeㆍWoo, Sang-Mi

The purpose of this study was to analyze the problems that hinder the promotion of life Social Overhead Capital (SOC) public-private partnership (PPP) in Seoul and to derive improvement measures for revitalization. Prior to the full-fledged research, the nature and history of life SOC, legal and institutional characteristics, and the current status of national and Seoul cities were investigated. Through the following research procedures, the main analysis results for revitalizing PPP in Seoul were derived.

First, the possibility of promoting PPP was reviewed after analyzing the pre-promoted life SOC type project in Seoul to derive characteristics in terms of PPP. As a result of the review, it was found that the main characteristics of Seoul's life SOC to promote PPP were payment status, facility composition method, target site owner, building aging and site utilization, and feasibility analysis.

Second, individual interviews and surveys were conducted with stakeholders in the public and private sectors to derive problems and improvement directions for the Seoul Metropolitan Government’s life SOC PPP. As a result of the survey, it was found that the type of life SOC suitable for PPP is profitable facilities, and the appropriate size of private projects is 30 billion won. Difficulties were expected to occur mainly in the project promotion stage, and the improvement direction was found to be highly desired in terms of the role of the competent authorities, such as improving awareness, strengthening expertise, and improving the system.

Third, based on the results of interviews and surveys, detailed improvement measures were proposed by dividing them into project composition and public sector. As for the improvement plan in the business composition sector, the necessity of comprehensive consideration for improving the business size, operational risk, appropriate business type, implementation method, and profitability that determine the business incentives of private businesses were mentioned. In particular, it emphasized the need for efforts to improve the system, such as expanding the size, utilizing unit/affiliated projects, and reducing the period, to increase investment incentives. As a means to improving the public sector, it was suggested to secure expertise from the competent authorities, improve pre-planning ability, and reduce the period of promotion of PPP. In particular, it emphasized the need for public-led efforts, such as restricting the establishment of the Seoul PPP Forum (tentative name) and support organizations.