The South Korean government wants to attract private companies to participate and bid for local railway projects beyond the Seoul and Gyeonggi metropolitan areas amid difficulties in financing infrastructure development with state capital.
The government seeks to attract some 20 trillion won ($17 billion) from the private sector to build and expand railway networks nationwide over the next 10 years, the Ministry of Strategy and Finance and the Ministry of Land, Transport and Maritime Affairs said.
“The development and expansion of the railways through private investment will help meet transportation demand in a situation where the country’s fiscal capability is decreasing. The government will allow the private sector to gain profit through business diversification, in addition to rail operations and maintenance,” Finance Minister Yoo Il-ho said.
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