The economy of the Republic of Korea has recovered from the Asian crisis of the late 1990s with a wide range of government-initiated reforms, including more transparent and accountable corporate governance, the breakup of the old government-backed chaebol conglomerate system and a major clean-up of the financial and banking sectors. Growth of GDP was strong in the years immediately following the crisis, and growth for this year and the next are projected to be at or above the long-term projection of 6 per cent per annum. The rate of inflation has remained under control, interest rates are low and decreasing steadily and the currency exchange rate has been stable. With these sound economic indicators, no sudden downturn is expected in the economy in the foreseeable future. However, continuing volatility in global financial markets and uncertainties from the nuclear situation in the Democratic People's Republic of Korea may cause instability in domestic markets and harm the investment environment.
A growing economy creates massive demand for infrastructure facilities. The Republic of Korea continues to place high priority on stable and sustainable development of the country, for which the provision of high-quality and adequate infrastructure facilities is essential. It is estimated that over the next 10 years more than $ 150 billion of investment will be required to meet the growing needs for new and improved infrastructure facilities in the country. The PPI programme of the Republic of Korea is envisaged to meet a large part of this massive investment requirement and thereby to help lay a strong foundation for the country's bright future.