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IV. Scope and Priorities of Infrastructure Programs and Projects
1. Transport
National Intermodal Transportation Network Plan (2000-2019) was set to secure transportation infrastructure to boost national competitiveness in the 21st century global competition, to build a cost-reducing logistics system and a highly efficient transport system, to attain swift, safe, convenient and environment-friendly transportation system, and to establish inter-Korean transportation network in preparation for unification of South and North Korea.
In order to achieve these goals, several implementation strategies are being pursued. Establishing efficient transport share system among different means of transportation is one of the priorities. Arterial roads will handle various traffic demands such as short and medium distance transportation. Arterial railroads will deal with large traffic demands with emphasis on medium and long distance transportation. In addition, ports will be in charge of import/export freight transport and costal transport of large domestic freight. Airports will be in charge of domestic and international air transport, and high value-added emergency cargo transport.
The Government is trying to improve mobility and access of land arterial traffic. A lattice arterial road network will be established nationwide by building seven north-south axes (3,291km) and nine east-west axes (2,869km) of the lattice arterial road network. To establish the X-type Trans-Korean Railroad which links the capital region with major areas, construction of the Gyeongbu High-speed Railroad and Honam High-speed Railroad were launched. So an arterial railroad network, which can accommodate large volumes with mass transportation functions, has been established.
Another aspect would be building a transportation and logistics powerhouse in Northeast Asia. In preparation for increase in international exchange and preference for sophisticated means of transportation, the capacity of airport facilities will be expanded by three times (from 42.8 million in 1997 to 128.4 million people in 2019). The Incheon International Airport will be expanded continuously so that it can emerge as a hub airport in Northeast Asia. As such, air
transport capacity will be increased to meet demand of the time where airplane use became popular.
The two port system of Busan and Gwangyang ports will be established and capacity of port facilities will be expanded by four times (from 295 million tons in 1997 to 1,288 million tons in 2019) in preparation for increase in international trade and vitalized coastal transport.
To rationalize the logistics flow, logistics bases will be expanded in major areas nationwide. In addition, the comprehensive logistics information network will be established. It links individual freight information network of land, sea and air transport with relevant information network such as customs clearance and trade, thereby reducing costs.
The Government is also making efforts to link inter-Korean transportation network and building intercontinental transportation network. Depending on progress in inter-Korean relationship, the railroad network which can directly transport large volumes of freight will be built. It includes railroads such as the Gyeongwon, Gyeongui and Geumgang Lines, and six roads such as the Mokpo-Shinuiju Line. The linkage of roads will be pursued in preparation for human
exchange.
In the road sector, the private sector will be commissioned to implement road maintenance and repair projects. Build- Transfer-Operate (BTO) scheme will be encouraged to provide new roads. As for the railroad sector, independent management of the existing public organizations will be strengthened, and construction and operation of infrastructure will be separated. In the port sector, independent port authority system will be introduced. As for airport restructuring, usage fees of airport facilities will be determined at moderate level and autonomous management right will be guaranteed. By vitalizing mass transportation with large transport functions, personal traffic demands are expected to be absorbed considerably.
As there are more international transactions and increased interest in more comfortable transportation, the emphasis on air terminal and airport transportation have become inevitable. To develop Incheon Airport as the Hub Airport of Northeast Asia and to meet high demand for air transportation, the Government has allocated more resources. Incheon Airport will have 1.6 times increased capability in handling passengers and meeting their demands (about 81 million people in 1997 used Incheon, and it will be available for more than 128 million people in 2019).
To develop and utilize high-tech transportation technologies, the budget for transportation technology will be raised to 5% of the special account for transportation infrastructure. Cuttingedge transportation technologies with significant technological spill-over effects will be designated and jointly developed by the industry and academia. The Government will lay the foundation for traffic safety which corresponds to global standards. Additionally, efficient traffic accident management system will be set up to minimize damage from the accidents.
In order to implement the above-mentioned transportation strategies, approximately 335 trillion KRW is expected to be spent from 2000 to 2019. Around 25 billion KRW of it will be paid by the Government with revenue such as those from traffic taxes. The remaining amount will be financed by private capital inducement and investment from public corporations.
To support regional infrastructure development, the Government promote private sector investment in Metropolitan Development Projects, Development Promotion District Projects, Specific Region Development Projects and Comprehensive Regional Development Projects under「The Balanced Regional Development and Support for Small and Medium-sized Enterprises Act」. 52% of Metropolitan Development Projects, 67% of Development Promotion District Projects and 24% of Specific Region Development Projects are subject to private investment. To monitor implementation performance, the Government carries out annual evaluation of regional development projects.
<Table IV-1> PPI road projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Incheon Int’l Airport Expressway | 1,583 | 123 | In operation | 11/1995 | 11/2000 |
| Gwangju 2nd Beltway Section 1 | 286 | 113 | In operation | 06/1997 | 11/2000 |
| Cheonan-Nonsan Expressway | 1,403 | 408 | In operation | 12/1997 | 12/2002 |
| Woomyunsan Tunnel | 140 | 0 | In operation | 08/1999 | 01/2004 |
| New Daegu-Busan Expressway | 1,951 | 584 | In operation | 02/2001 | 01/2006 |
| Seoul Beltway | 1,505 | 433 | Under construction | 06/2001 | 06/2008 |
| Ilsan Bridge | 172 | 30 | Under construction | 08/2003 | 12/2007 |
| Busan-Geojae Connection Road | 1,447 | 447 | Under construction | 12/2004 | 12/2010 |
| Machang Bridge | 253 | 63 | Under construction | 04/2004 | 06/2008 |
| Seoul-Chuncheon Expressway | 1,430 | 428 | Under construction | 08/2004 | 08/2009 |
| Incheon Bridge | 1,096 | 572 | Under construction | 07/2005 | 10/2009 |
| Yongin-Seoul Expressway | 808 | 324 | Under construction | 10/2005 | 06/2009 |
| West Suwon-Pyungtaek Expressway | 857 | 249 | Under construction | 06/2005 | 10/2009 |
| Myungji Bridge | 360 | 108 | Under construction | 01/2005 | 01/2010 |
| Busan-Ulsan Expressway | 1,137 | 330 | Under construction | 08/2006 | 12/2008 |
| 3rd Gyeongin Connection (Shiheung-Namdong) | 481 | 0 | Under construction | 08/2006 | 08/2010 |
The table only includes PPI projects managed by the central government on operational or construction phase.
<Table IV-2> PPI railway projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Incheon International Airport Railroad | 3,138 | 763 | Under construction | 04/2001 | 12/2009 |
| New Bundang Subway | 1,169 | 561 | Under construction | 07/2005 | 07/2010 |
| Yongin LRT | 697 | 300 | Under construction | 12/2005 | 06/2009 |
| Busan Gimhae LRT | 774 | 292 | Under construction | 02/2006 | 10/2010 |
| Seoul Subway Line #9 | 900 | 420 | Under construction | 06/2006 | 09/2009 |
The table only includes PPI projects managed by the central government on operational or construction phase
<Table IV-3> PPI railway projects - BTL (Unit : billion KRW)
| Project Name | Total Project Cost | Current Phase |
| Jeolla Line | 617 | Contract signed in April 2007 |
| Gyeongjeon Line | 435 | Contract signed in May 2007 |
The table only includes PPI projects managed by the central government on operational or construction phase
<Table IV-4> PPI port projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Mokpo New Port, Phase 1-1 | 84 | 37 | In operation | 01/2001 | 06/2004 |
| Mokpo New Port, Phase 1-2 | 23 | 10 | In operation | 02/2002 | 06/2004 |
| Incheon North Port, Phase 1-1 | 127 | 34 | In operation | 03/2003 | 01/2007 |
| Busan New Port, Phase 1 | 1,648 | 499 | Under construction | 05/2001 | 05/2009 |
| Gunsan Biung Port, Phase 1-1 | 99 | 48 | Under construction | 07/2003 | 06/2007 |
| Incheon North Multipurpose Port | 190 | 57 | Under construction | 08/2003 | 02/2008 |
| Ulsan New Port, Phase 1-1 | 189 | 27 | Under construction | 07/2004 | 06/2009 |
| Masan Port, Phase 1-1 | 225 | 88 | Under construction | 12/2005 | 12/2011 |
| Phohang Youngilman New Port, Phase 1-1 | 247 | 102 | Under construction | 08/2005 | 08/2009 |
| Incheon North General Port | 114 | 31 | Under construction | 11/2005 | 05/2009 |
| Pyungtaek Multipurpose Port | 137 | 30 | Under construction | 09/2006 | 09/2009 |
The table only includes PPI projects managed by the central government on operational or construction phase
<Table IV-5> PPI airport projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Incheon Airport Cargo Terminal | 154 | 0 | In operation | 05/1998 | |
| Incheon Airport Refuel System | 85 | 0 | In operation | 03/1998 | 10/2002 |
| Incheon Airport Cogeneration Plant | 118 | 0 | In operation | 04/1998 | 10/2002 |
| Incheon Airport Equipment Facilities | 16 | 0 | In operation | 07/1999 | 10/2000 |
| Incheon Airport Cargo Warehouse | 18 | 0 | In operation | 01/1999 | 10/2000 |
| Incheon Airport in-flight Food Facility | 74 | 0 | In operation | 05/1999 | 11/2000 |
| Incheon Airport Flight Maintenance Facility | 98 | 0 | In operation | 03/2000 | 06/2002 |
The table only includes PPI projects managed by the central government on operational or construction phase
<Table IV-6> PPI logistics center projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Honam Multi Freight Terminal | 199 | 0 | Under construction | 12/2002 | 12/2010 |
The table only includes PPI projects managed by the central government on operational or construction phase
2. Water Resource and Sanitation
Water resource management is very difficult in Korea because of uneven precipitation during the year and topographical conditions. About 70% of annual precipitation occurs in summer, which results in floods in summer and droughts in spring. Due to high inclination of land, rainfall rapidly runs off into the ocean rather than being absorbed into the groundwater. 「National Water Resources Plan (2006∼2020)」predicted that the total regional water shortage is
expected to be 340 million ㎥/year in 2011 considering water demand and supply capacity.
To ensure stable supply of water, the Government has focused on building medium-sized environment-friendly dams, which aim at increasing capacity to implement principles of integrated water resource management in policies and investments at strengthening institutions to improve efficiency in the delivery of water and sanitation services. Due to water actualization process (actualization rate : from 74% in 1999 to 100% in 2005), the Korea Water Resources Development Corporation will first utilize its own funds to reduce the scale of expenditure on a nationwide waterworks.
4 multipurpose dams (Pyeongrim, Hwabuk, Boohang, Sungduk) are under construction to secure sufficient and clean water.
A campaign for finding abandoned wells has been implemented to prevent groundwater pollution. As of December 2006, 14,453 abandoned wells were found and restored to their original state. For providing information on groundwater and management, the National Groundwater Information Management and Service Center (GIMS) have been established. Additionally, projects such as rainwater reutilization, desalination and underground dams have been launched to supply water in non-supplied areas including coastal and mountainous areas and islands. To ensure continuous and stable water supply, building of environment-friendly dam and maximizing the use of existing dams are in progress.
<Table IV-7> Investment in water resources currently under way
| Project Name | Projected Construction Completion (Year) |
| Pyeongrim Dam | 2007 |
| Hwabuk Dam | 2008 |
| Sungduk Dam | 2010 |
| Boohang Dam | 2011 |
<Table IV-8> Multi-regional & Industrial Water Supply Projects (as of May 2007)
| Project | Period | Water Supply | Capacity (100㎥/day) | Supply region (Recipients) |
| Total | 775 | |||
| Multi-regional Water Supply (12) | 496 | |||
| Construction of Multi-regional Water Supply in Central Chungnam | ’99∼’09 | Daecheong Dam | 163 | 3 cities including Gongju, Nonsan, and Buyo |
| Construction of Multi-regional Water Supply in Southern Chungnam | ’05∼’08 | Yongdam Dam | 32 | 2 cities including Guemsan and Muju |
| Construction of Multi-regional Water Supply in Western Jeonnam | ’98∼’08 | Pyunglim Dam | 30 | 4 cities including Jangsung and Hampyung |
| Construction of Multi-regional Water Supply in Southern Jeonnam(Ⅰ) | ’99∼’08 | Jangheung Dam | 200 | 9 cities including Mokpo, Jangheung, and Wando |
| Construction of Multi-regional Water Supply in the Youngnam Region | ’01∼’08 | Nakdong River | 71 | 3 Cities including Dalsung, Sungju, and Koryung |
| Adjusting Multi-regional Waterworks System in the Downstream of Han River(Ⅰ) | ’03∼’08 | Paldang Dam | - | 3 cities including Gimpo, Goyang, and Paju |
| Adjusting Multi-regional Waterworks System in the Southern Han River | ’05∼’08 | Chungju Dam | - | Yi-cheon City |
| Adjusting Multi-regional Waterworks System in the Northern Geum River(Ⅰ) | ’04∼’08 | Daecheong, Boryung Dam | - | 4 cities including Cheonan and Asan |
| Adjusting Multi-regional Waterworks System in the Southern Geum River | ’03∼’08 | Yongdam, Daecheong, Seomjin River Dam | - | 13 cities including Jeonju, Jungeub, and Gunsan |
| Adjusting Multi-regional Waterworks System in Multifunctional Administrative City | ’06∼’11 | Daecheong Dam | - | Administrative district city |
| Adjusting Multi-regional Waterworks System in Yeongsan River | ’07∼’11 | Jangheung Dam | - | Hampyung Gun |
| Adjusting Multi-regional Waterworks System in the Central Nakdong River | ’06∼’08 | Nakdong River | - | Gumi City |
| Industrial Water Supply Projects (4) | 279 | |||
| Adjusting Industrial Waterworks System in the Hwasung Complex | ’07∼’09 | Paldang Dam | - | Hwasung industry complex |
| Construction of Industrial Water Supply in Gwangyang (Ⅲ) | ’99∼’07 | Seomjin River Suuh dam | 215 | Gwangyangman 10 cities and industrial complex |
| Construction of Industrial Water Supply in Gumi | ’98∼’07 | Nakdong River | 64 | Gumi national industrial complex 4th complex |
| Adjusting Industrial Waterworks System in the Jinhae National Complex | ’06∼’07 | Nakdong River | - | Jinhae national industrial complex |
In order to protect citizens’ lives from localized heavy rains, the Government has invested in providing flood control system. Recently, there have been localized heavy rains especially in Nakdong River regions, which threatened citizens’ lives. Government will continuously put in consistent funding for provision of flood control system. Additionally, as a part of disaster prevention, increased subsidization will be provided for building regional river flood control system. In the interest of flood control, local governments will provide policies that would ensure uninterrupted assistance in supplying suitable infrastructure.
Providing waste water treatment is essential to secure consistent water supply. Thus, one of the Government’s primary goals is to procure sewage disposal treatment plants and activated sludge. Investment for sewage pipes is relatively low compared to what has been put in for waste water treatment. Bringing in private funding will enable early completion of sewage pipes and ultimately increasing efficiency of maintenance and improving quality of water.
As of late 2004, the sewage service supply rate (registered population divided by the population in sewerage service regions) is 81.4%. The capacity of 286 sewage service facilities across the nation is 21,535 tons per day, and the total length of sewer pipelines was 82,215km. Sewage treatment system has shifted its focus from providing sewage disposal plant to supplying pipes, which augmented efficiency. In addition to financial support, the Government has adopted Build-Transfer-Lease(BTL) scheme to utilize private funding and concentrated on distributing appropriate facilities at the earliest convenience.
<Table IV-9> PPI environmental facilities projects - BTO (as of December 2006) (Unit : billion KRW)
| Project Name | Total Project Cost | Gov’t Subsidy | Current Phase | Construction Commencement | Construction Completion |
| Metropolitan Landfill Corporation Gas Recycling | 77 | 0 | In operation | 03/2004 | 12/2006 |
| Jeonbuk Sewage Treatment Facility | 196 | 138 | Under construction | 02/2005 | 06/2008 |
| Yongin Sewage Treatment Facility | 400 | 349 | Under construction | 12/2005 | 06/2008 |
The table only includes PPI projects managed by the central government on operational or construction phase
<Table IV-10> PPI environmental facilities projects (BTL Sewage pipeline projects)
| Investment cost | |||||
| Total | ’05 | ’06 | ’07 | After ’08 | |
| Length (km) | 6,736 | 1,570 | 3,627 | 1,539 | - |
| Investment Cost (billion KRW) | 4,614 | 1,000 | 2,307 | 1,307 | 1,000 |
3. Power/Energy
The goal of Korea's energy policy has shifted from ensuring a stable supply of energy to achieving sustainable development, in due consideration of the changing internal and external conditions. In order to maintain the high economic growth rate of the 1970s, energy supply policies centered on oil, which was relatively cheap and easy to purchase. However, two rounds of oil crisis significantly affected the national economy, and new policies have been pursued since the 1980s to establish a stable supply and demand system, including the diversification of energy supply sources and expanding the energy supply infrastructure.
With international oil prices stabilizing and domestic energy supply and demand system being firmly instituted in the early 1990s, policies to strengthen market functions in the energy sector were promoted. Accordingly, the market was significantly deregulated and rationalization was pursued in the coal industry. From the late 1990s, restructuring of the energy sector was pursued in full-scale with the introduction of the principle of free competition to such utility industries as electricity and gas which had been considered natural monopolies.
In spite of the surging domestic energy consumption, Korea has been able to maintain a stable supply of energy through continued expansion of energy supply facilities. Furthermore, an advanced energy supply and demand system was established as the result of expanded network of the supply base for electricity, petroleum, city gas, and thermal energy.
Korea has been expanding natural gas supply facilities like LNG storage facilities and LNG distribution pipeline and increasing power transmission & distribution line for stable electricity supply. As a result, Korea holds 62,258 MW of power generating facilities and 27,842km of electricity transmission capacity in 2005. And as of 2005, Korea holds 3 natural gas offloading terminals and 2,251km of pipeline. And when it comes to oil, Korea holds 124 days of oil reserve
and 1,081km of pipeline. As of 2005, Korea is currently operating storage tanks capable of 4.46 million ㎘ s LNG, in three LNG facilities located in Incheon, Pyeongtaek and Tongyeong.
National Pipeline Network completed in 2002, is also running its full supply operation on a nation-wide basis with 2,511 ㎞ and the amount of 1.9 million tons of LNG. LNG regasifying facilities are particularly estimated to produce 10,100 tons of LNG per hour in 2010, while 7,300 tons per hour is regasified as of 2005. With regard to the expansion of electricity
supply facilities, generating facilities have been expanded from 21,021 MW in 1990 and 32,184MW in 1995, to 62,258 MW in 2005. Transmitting facilities comprise of 69% of the 154kv power line, while 29% are the 345kv types. The high voltage power lines with 765kv are planned to be expanded to enhance energy efficiency in terms of power-transmission.
The Government established the 3rd Basic Plan of Long Term Electricity Supply & Demand, which is considering the estimated electricity demand increase by 2020. According to the Plan, the capacity of generating facilities will be increased by 44 % in 2020 compared to the capacity in 2006, which will be 94,280MW. The relative importance of nuclear power out of total capacity will be slightly increased, while coal and LNG will be remained the same in 2020. Comparing to 2005, the number of transmission lines and substations will be increased by 1.32 times and 1.45 times respectively in 2020.
In order to confront energy crisis effectively, the Government will continuously expand stable base of energy. Domestically, the Government will expand facilities that would store petroleum and natural gas for emergencies. In addition, it will continue its effort to assure joint effort among North-East Asian countries regarding mutual energy assistance. Government will maintain its effort to secure independent supply of energy and carry on its close relationship with the private sector regarding provision of advanced energy development base.
Initiatives forwarded by the United Nations Framework Convention on Climate Change have spurred strengthened environmental regulations. As a result, sustainable development has emerged as the focal point of Korea's recent shift in energy policy. Korean Government’s consistent effort to respond to the Climate Change Convention and to ensure supply of environment-friendly energy will lead to increased use of renewable energy and to smooth transference to hydrogen-based economy. The key focus will be placed in finding potential of new renewable energy and its economic efficiency. Project effectiveness will enhance as there will be continuous support for technology development.
4. Telecommunications
The Government has been investing in IT Service and Telecommunications since 1995. As a result, Korea has ranked the first for the most people having access to the high-speed broadband nternet services (ITU, 2005) and the third highest in usage rate of Internet services (ITU, 2005).
Korea has one of world’s best IT infrastructure. ICT(Information & Communication Technology) has played a crucial role in promoting the public participation, which is a core element of democracy, and the inception process of Korea's new administration named the participatory government.
Through active implementation of plans to build a high-speed information network, such as the enactment of the Basic Act on Informatization Promotion in 1995, Korea has evolved into a global leader in information infrastructure. Over a period of 11 years, between 1995 and 2005, 33.4 trillion KRW(government investment approximately 855.5 billion KRW, private investment 32.6 trillion KRW) had been invested to complete the roll out of broadband Internet network across 144 major towns and villages(‘Eup’ and ‘Myeon’) in 2002, creating an infrastructure environment enabling all people to access the Internet. Following the completion of the high speed national network in 2005, 31,707 public agencies, primary and secondary schools across the country have affordable and stable access to network services.
Based on this infrastructure, the Government is promoting the construction of BcN (Broadband convergence Network), which enables seamless, quality-guaranteed converged broadband multimedia services of telecommunications, broadcasting, and the Internet anytime and anywhere, in order to prepare for the new environment of digital convergence and the evolution to the ubiquitous information society. This project started in 2004. T
he construction of BcN infrastructure is underway in order to provide the 10 million wired and another 10 million wireless network users with such infrastructure by 2010, based on the uccessful experience of building the world's top class information network. The total of 7.89 million(wired: 6.05 million, wireless: 1.84 million) users have made a transition to BcN as of June 2007.
The deployment of BcN takes several shapes: Mainly, widened bandwidth of subscriber network, upgraded converged transport network of telecommunications, broadcasting and the Internet, integrated network management and service/control network roll out, as well as development and provision of various converged services based on BcN.
Firstly, in the area of BcN transport network, the objective is to build a broadband, quality guaranteed converged network. To this end, the existing transport network of several tens of Gbps will be upgraded to several or several tens of Tbps, QoS-ensuring function will be adopted to provide high-quality service and separate service exchange networks, such as existing PSTN, broadcasting network and Internet network, will be replaced by a single IP-based integrated
network. KT, a major service provider in Korea, is expected to complete the nationwide IP premium network roll out by end of 2007.
Secondly, to upgrade the fixed and mobile BcN subscriber network so as to enable the delivery of converged broadband multimedia services, wired subscriber network has been upgraded to provide 50~100Mbps bandwidth by applying FTTH, LAN, VDSL, HFC DOCSIS 3.0(cable) methods, while HSDPA and WiBro networks, capable of providing more than 1Mbps
bandwidth, has been built as part of the wireless network.
Thirdly, with a view to build an integrated service/control network to provide various converged services of the future in an economic and efficient way, Korea plans to develop a function for integrated control and management of subscribers and resources to various service networks under the BcN, and mobility function which supports seamless services between different networks, and to adopt an open API technology, which ensures the development and provision of various services without confinement to a particular network.
The Government will come up with various policies that enable Korea to be transformed into an ICT hub in Northeast Asia. To this end, based on the best IT infrastructure in place, Korea will push ahead with appropriate policies and create an environment, KOREN(KOrea advanced REsearch Network, including APII test-bed & TEIN), where Korea can serve as a test-bed for cutting-edge ICT products, a center of Internet traffics and a focal point of high-tech R&D and
standardization activities. KOREN has been deployed as a network infrastructure for testing and verifying BcN-based technologies and services that are part of the IT839 Strategy.
Also, high-capacity, fiber optic cable based network for research and testing purposes with a transmission rate of 2.5G~40Gbps, has been built in six cities, which services as much as 1Gbps in network capacity to approximately 60 institutions, including universities and research institutes. What is more, a public testing environment for testing and verifying BcN related technologies has been built in Seoul(metropolitan area) and Daejeon. In addition, a foundation for global information and communications research collaboration in the field of leading technology R&D is now being created in connection with international research networks such as TEIN and APII test bed.
Finally, a new project was planned in 2005 to meet universal service obligations in telecommunications area. The project was devised to support the construction of broadband networks at backcountry areas (about 50,000 households, which is around 1% of the total rural areas), where most of the Internet service providers avoid providing services to due to low profitability. The project started in 2006 and will last two years. The budget for the project is 36 billion KRW in total a year and is supported by the central government, local government, and the private sector at a ratio of 1:1:2. This project will complete our goal to allow ubiquitous access to the broadband Internet by the end of 2007.
The Government is trying to enhance transparency, efficiency, and the innovative delivery of administrative services through e-government and to promote Korea’s international competitiveness by facilitating efforts to integrate information technology in the economy. In order to effectively deal with increased demand for IT and mass multi-media services, Korea will build a Broadband convergence Network (BcN) and U-Sensor Network (USN) and develop new growth engine. Furthermore, the Government will continue investing in services such as WiBro, which are strategically valuable in the future. Through such efforts, Korea will ensure to create a digital welfare society where every Korean can play a leading role.
In terms of financing, the Government has attracted private sector investment (2004~2007), facilitating BcN core technology development, standardization, and public-private cooperation program.
<Table IV-11> Public investment in telecommunication projects (Unit: 100 million KRW)
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