earticle

영어

The latest construction industry status shows a downward trend. Construction companies are positively promoting public-private partnership project financing business(project financing of competition) to overcome the current situation. Public-private partnership project financing business is expected to obtain synergy effects by combining the experience of institutions from residential land development and the experience of private institutions from construction experience Thus it carries the advantage of uniting the public nature of public institutions and the technological capability and the capital strength of private institutions which maximizes the value of the business. However, there are some difficulties. The purpose of this study is to research the problems of construction companies on promoting public-private partnership project financing and find a solution to them. As for the difficulties of public-private partnership project financing business, firstly, the public nature of public institutions are becoming more commercialized and secondly, there are no standardized confederacy basis in the process of selection a business proprietor, so every project offers different standards and conditions. Thirdly, when selecting a business proprietor the construction company that offers the highest land price is picked. Eventually, construction companies compete to pose higher price and it only results in rising land price. Other than that, various problems, such as increase in working expenses and qualification limit for participating enterprise according to public institutions, are being discovered. As a solution to these problems, there is a need to set a standardized selection base, and give more points to development course, development idea and such rather than land price so that even if their capital strenth is weak, small and middle businesses with good initiatives can participate more and also, we can present diversification of business models as a solution