Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/200803 
Authors: 
Year of Publication: 
2017
Citation: 
[Journal:] KDI Journal of Economic Policy [ISSN:] 2586-4130 [Volume:] 39 [Issue:] 1 [Publisher:] Korea Development Institute (KDI) [Place:] Sejong [Year:] 2017 [Pages:] 41-82
Publisher: 
Korea Development Institute (KDI), Sejong
Abstract: 
This paper studies the risks associated with local finance in Korea by identifying the financial status of each local government, including the financial burdens of PPP projects, and examined governmental future burdens related to PPP projects. We reviewed all fiscal burdens associated with projects, such as, for BTL (Build-Transfer-Lease) types of projects, facility lease and operating expenses, and, for the BTO (Build-Transfer-Operate) types of projects, construction subsidies that are paid at the construction stage, MRG (Minimum Revenue Guarantee) payments and the government's share of payment. Furthermore, we compared the annual expenditures of local governments on PPP projects against their annual budgets and checked if the 2% ceiling rule could be applied.
Subjects: 
Public Private Partnership (PPP)
Fiscal Burden
2% Ceiling Rule
Fiscal Soundness
Local Government
JEL: 
H54
H63
H72
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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