都市整備事業의 資金調達을 위한 프로젝트 파이낸싱 意思決定要因 硏究

도시정비사업의 프로젝트 파이낸싱 의사결정 요인을 연구했다.

Recently, there is growing interest at home and abroad in business of urban renewal("the Business) to improve deteriorating environment of existing urban areas as well as to restore functions of the city. In Korea, the rapid economic growth has witnessed urbanization focusing on external expansion of existing cities to meet the demand of urban development. Newly developed satellite cities located on the outskirts of metropolitan areas have become a comfortable dwelling place as an exemplary planning city with sufficient infrastructure. However, relatively old existing urban areas are still vulnerable to such disasters as flood and fire.

Furthermore, poor road and living conditions of these existing cities are serving as a stumbling block to balanced regional development, necessitating the Business of urban areas. Nonetheless, the Business poses quite a few problems, making smooth implementation of the Business difficult. Those factors including many irregularities responsible for the Business delay are closely related to financing method in the initial phase of the Business. Before the act on maintenance and improvement of urban areas ("the Act"), the Business started with the signing of a provisional contract with a specific constructor who then provided working capital needed for the Business. The Act, ho!

wever, prohibits any financial support from a contractor until the union is approved with 80% of consent from the members. The Act requires that working capital for the initial phase of the Business should be financed from the members. The Act also allows loans from management companies specialized in the business ("the Manager) or from financial institutions whenever necessary. In addition, municipal authorities can provide ‘City Maintenance and Improvement Fund’ ("the Fund") for the Business according to the Act.

However, most of the members are ordinary citizens and many small-sized Managers cannot afford to finance the Business as the minimum requirement of paid-in capital for the Manager is only 500 million won. Financial institutions are also hesitant to extend a loan to the union which has no legal status. There has been no case across the nation where the Fund is provided to the initial stage of the Business. As mentioned above, the need for the Business is widely recognized but the financing method, a key factor for the Business, leaves a lot to be desired.

Legal actions against illegal financing for the initial phase of the Business are becoming tougher, while few suggestions are made as to legal financing. Other countries have already utilized project financing as a financing method for the Business, but few attempts have been made at home to introduce and research project financing. Several assumptions have been made for this study. 1) The need of project financing is widely recognized as a transparent and legal financing method. 2) It is necessary to compare differences among concerned parties for the Business including financial institutions to ascertain root causes why project financing is rarely utilized.

3) The comparative analysis and study can help identify major factors barring aggressive introduction of project financing. With these assumptions, different perspectives among financial institutions, the Managers, and the union, the parties involved in financing under current laws and regulations, have been analyzed based on the mutual-oriented model. The survey conducted as to reliability and need for the introduction of project financing has revealed that financial institutions, at the stage of pre-approval of the union, think project financing less reliable and pressing than the Managers and the union. Among parties concerned, it seems that these different views are accurately shared.

On the other hand, after the approval of the union, financial institutions regard project financing as more reliable and appreciate its necessity. Also, the parties appear to accurately evaluate these objective perspectives one another with little difference in terms of reliability and necessity of project financing.

The analytical results of factors deterring wide use of project financing show that there isdivergence between the Business-related parties for illegal financing, unwillingness of financial institutions to give a loan, lack of concern of the government, and ill-management of the Fund, while all the parties share the same view over the legal status of the Business parties, legal restrictions on loans of financial institutions, and uncertainties of the Business. The summary of the analysis of divergence among the parties reveals the following points.

First, the phase where there is no divergenceamong the parties as to the reliability and necessity of project financing for the Business is from the approval of the union through the dissolution of the union. For the phases of pre-approval of the union, and of between the approval of the union and pre-approval of establishment of the union, financial institutions think less of reliability and necessity of project financing. The results suggest that the Business-related legal and systematic improvements are more urgent tasks rather than the problem of divergence of opinion among concerned parties.

Secondly, the union recognizes legal status of the Business party, unwillingness of financial institutions to give a loan, lack of concern of the government, and ill-management of the Fund as key factors preventing aggressive utilization of project financing. Financial institutions point out illegal financing and the Business uncertainty as the key factors while the Managers view legal status of the Business party, lack of concern of the government, and ill-management of the Fund as major hurdles. Thirdly, all the parties surveyed generally agree on reliability and necessity of project financing.

This means that financial institutions are interested in project financing for the Business, but taking wait-and-see attitude until relevan