Case study of Korean development over the last sixty years during the international symposium entitled, "Towards an Alliance between Paraguay and Korea" held in greater Asunción, Paraguay, June 17, 2014. For more visit: http://www.globalpeace.org/images/news/news-2014/Paraguay/international-symposium-towards-an-alliance-between-paraguay-and-korea

1. Korea VS Paraguay
Global Symposium
Korea S.O.C Case
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2. Index
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3. Paraguay
□ Based on Korea’s experiences of economic development and
professional knowledge, help S.O.C development in Paraguay
□ To achieve the goal, Introduce initial stage of S.O.C development
case of Korea
□ Study recent successful S.O.C cases to arrange concrete plans
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4. □ Establish Investment Plans and Feasibility Review
• Conclude MOU with local partners
• Consult investment sourcing
• Constitute investment review advisory (Bureaucrat, Public
enterprises, Bank, Law office, Professional investment institutions)
• Identify law and institutional investment barriers and examine
solutions
• Large-scale S.O.C development or small-scale pilot project
investment review
Paraguay 4

5. □ If required rate of return is lower than economic feasibility,
the government or international organizations should assure
Minimum Revenue Guarantee(MRG)
□ Need credit enhancement from organizations which have
credit ratings over investable grade (above BBB+)
Paraguay 5

6. □ Seal Investment Contract
□ Funding Strategy
→ Equity – Paraguay government & Korean investors
→ Loan – Loan capital from Korea or Paraguay
Paraguay 6

7. □ Management of Investment Asset
• Development : Managing S.O.C development construction,
quality control, safety supervision
• Management : Maintenance, collecting fees, and
distribution of profits
• Withdrawal of the principle : To Be Determined
Paraguay 7

8. Division 1968 2013
GDP Appx. $5.95billion $1,304billion
Road Extension Length 35,000km (6.5% paved) 106,000km (82% paved)
*During Construction, it was a big national project taking up 23.6% of national budget.
(per capita income=$142)
□ SOC Development Case Presentation
1. Gyeongbu Expressway
• Length : 425Km (Seoul to Busan)
• Period : 1968.2~1970.7 (2 years and 5 months)
• Expense : Appx. $136million
• Effect : Connecting the 1st city and 2nd city of Korea by the
expressway to boost economic vitality and growth
Paraguay 8

9. Paraguay 9
□ Private Investment Case Presentation
2. Incheon Road Bridge
• Length : 21.4km (Bridge: 18.4km)
• Period : 2005.7 ~ 2009.10 (52 months)
• Methods : Private investment- Marine bridge (12.3km)
National investment- Connecting road between Songdo
international business district and Yeongjongdo island (9.1km)
• Note : The longest bridge in Korea, the 1st Foreign private
investment of S.O.C
• Expense : $2.38billion

10. Paraguay 10
□ Private Investment Case Presentation
2. Incheon Road Bridge – Project Route Map
Yeongjongdo
island
Songdo International
Business District

11. Paraguay 11
□ Private Investment Case Presentation
2. Incheon Road Bridge – Financing
Government
Private
$0.86bn
$1.52bn
Construction Expenses: $2.38billion
Private Capital
$0.77bn
Government Subsidy
$0.75bn
51%
49%

12. Paraguay 12
□ Private Investment Case Presentation
3. Incheon Airport Railroad
• Length : 61km
• Period : 1st stage- 2001~2007, 2nd stage: 2004~2011
• Facilities : Incheon International Airport ~ Seoul Station
(10 stations, 1 city airport)
• Expenses : $4.5billion
*Private investment- Investors fund owned capital and the
government aids subsidy and assures Minimum Revenue Guarantee

13. Paraguay 13
□ Private Investment Case Presentation
3. Incheon Airport Railroad – Project route map
Seoul
Incheon

14. Paraguay 14
□ Private Investment Case Presentation
3. Incheon Airport Railroad – Financing
$0.93bn
$0.84bn
$2.58bn
$0.19bn Owned Capital
Govenment Subsidy
Borrowed Capital
1st Traffic Receipts
Construction Expenses: $4.54billion
(21%)
(19%)

15. Thank you
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