Abstract ▼ AI-Helper

As a nation develops, enormous budget has been required in various fields such as welfare and national defense. However, since the government's limited budget is not sufficient to fully cover them, it is a private investment project that the government introduces as a solution for this insufficiency...

As a nation develops, enormous budget has been required in various fields such as welfare and national defense. However, since the government's limited budget is not sufficient to fully cover them, it is a private investment project that the government introduces as a solution for this insufficiency. But early private investors in these projects tend to be passive in investing due to the high risk. In return, the government attempts to encourage private sector to invest more actively by instituting the Minimum Revenue Guarantee (MRG) system.
With this opportunity, private investment has become invigorated effectively, but it also causes side effect. It is the case that private investors preempt investment profits through expedient refinancing by means of MRG, the system for assuring stable profitability. Later, the government has recognized this backfire seriously, and establish the to restrain such expedient refinancing. In addition, the MRG system has been even abolished so that illegal refinancing activities can be prohibited fundamentally.
Recently, refinancing itself still takes place in the private investment projects, launched after the MRG has been abolished. But its purpose for refinancing is completely different from the expedient refinancing in the past. Most cases are to barely overcome the business crisis resulting from the lack of planned demand. However, since the system applies the original form of system from the past, whose purpose is restraining the abuse, the hinders current private investors from refinancing to revive their business.
System is inevitably inconsistent with reality, that’s why a system should be improved constantly. The purpose of this study is to analyze the cause of such inconsistency and to present a reasonable and future-oriented improvement plan, which is accepted fair enough to both interests at stake.
The government and the business implementer are not in a competitive relation. Also, they are not in a conflicted relation in interests. When it comes to private investment projects particularly, they should be in mutually beneficial relationship. The very thing is the genuine reason for introducing a private investment project in the first place. Indeed, it is certain that the consequence of the project will return to the benefits of the public in the end.