Impact on Growth from Private Investment in Infrastructure

Private investment in infrastructure in the Republic of Korea totaled W106 trillion ($98.33 billion) at the end of 2016 according to the Ministry of Economy and Finance. Table 8.3 shows private investment in BTO infrastructure projects and its contribution to gross domestic product growth from 2001 to 2012. Table 8.4 shows the same for BTL projects for 2005 to 2012.

Table 8.3: Effect on Growth from Build-Transfer-Operate Projects in the Republic of Korea (won trillion)

Year

Nominal GDP

Total Project Cost of BTO Projects

Private Investment in BTO Projects

Contribution to GDP

GDP Growth Effect (%)

2001

651.42

1.83

1.36

107

0.165

2002

720.54

2.33

1.71

150

0.208

2003

767.11

2.27

1.63

161

0.209

2004

826.89

2.98

2.12

180

0.218

2005

865.24

4.08

2.78

232

0.268

2006

908.74

5.13

3.42

299

0.329

2007

975.01

5.46

3.70

341

0.349

2008

1,026.45

5.86

4.10

381

0.371

2009

1,065.04

5.00

3.49

370

0.348

2010

1,173.28

3.36

2.47

291

0.248

2011

1,235.16

3.46

2.51

246

0.199

2012

1,272.46

3.53

2.72

249

0.195

BTO = build-transfer-operate, GDP = gross domestic product.

Source: Korea Development Institute. 2014. Comprehensive Evaluation on Public-Private Partnership Projects in Korea. Sejong.

Table 8.4: Effect on Growth from Build-Transfer-Lease Projects
in the Republic of Korea
(won trillion)

Year

Nominal GDP

Total Project Cost of BTL Projects

Private Investment in BTL Projects

Contribution to GDP

GDP Growth Effect (%)

2005

865.24

0.0044

0.0044

0.15

0.00017

2006

908.74

0.81

0.81

33

0.037

2007

975.01

2.19

2.19

139

0.143

2008

1,026.45

3.58

3.56

276

0.269

2009

1,065.04

3.63

3.60

340

0.319

2010

1,173.28

3.88

3.85

364

0.310

2011

1,235.16

4.17

4.15

389

0.315

2012

1,272.46

3.77

3.77

384

0.302

BTL = build-transfer-lease, GDP = gross domestic product.

Source: Korea Development Institute. 2014. Comprehensive Evaluation on Public-Private Partnership Projects in Korea. Sejong.