Planning Ministry to Revise Infrastructure Investment Law

The Ministry of Planning and Budget will revise the private investment promotion law to attract more infrastructure investment, according to a Wednesday announcement.

The ministry's Korea Infrastructure Fund will increase its credit guarantee ceiling from 30 billion won ($27.27 million) to 100 billion won.

The government will also provide protection against foreign exchange fluctuations. Companies submitting infrastructure development plans will also be asked for more detailed information than in the past so the ministry and the fund can better assess creditworthiness.

The Private Infrastructure Investment Center of Korea, another planning ministry organizaton established as a one-stop service center to support the projects, will also examine the plans before signing off on investment guarantees for new projects.

The government enacted the private investment promotion law in 1994 to ease the shortage of financing sources for infrastructure projects and to ease administrative problems for private companies which undertake such projects.

by Oh Jung-hee