A Study on Reorganization of the Legal Framework of the Private Investment Act and Other Individual Laws on Private Investment Projects in Infrastructure

In our country, private investment projects related to infrastructure include those based on the Private Investment Act and other individual laws. In the case of road facilities, a private investment project for road facilities can be pursued under the Private Investment Act or under the Toll Road Act. Both legal bases allow for implementation of private investment projects. Therefore, even though the infrastructure is the same, the competent authority or private operators can choose one of these laws at their discretion to carry out the private investment project. The Private Investment Act does not exclude private investment projects based on other individual laws, even for the same facilities. Through several amendments, the Private Investment Act has relatively well-organized various means to secure the legitimacy of private investment projects, including the necessary requirements and procedures. However, private investment projects based on other individual laws are regulated by only a few provisions, making the means to secure the legitimacy of such projects very limited. If the competent authority or private operators carry out the project based on the individual law, they may avoid the necessary procedures and requirements that the Private Investment Act has already established to secure the legitimacy of the private investment project. Therefore, there is a need for a systematic review and fundamental reform of the private investment regulations under the Private Investment Act and individual laws. Previously, the Private Investment Act listed specific infrastructure facilities, but recently, the scope has been expanded to include all infrastructure under a comprehensive approach. Additionally, the Private Investment Act provides a complete system for the requirements and procedures necessary for promoting private investment projects. It may be worth considering establishing the Private Investment Act as the general law for private investment projects in infrastructure. At least, even if the current parallel order of the Private Investment Act and individual laws is maintained, the regulations related to private investment projects under individual laws should include provisions for pre-feasibility studies, open competitive procedures, appropriateness of business conditions such as user fees, continuous public interest preservation, securing legitimate investment and returns for private operators, equal standing in the execution agreement between the competent authority and private investors, public expropriation and compensation, and other related regulations, either by applying or referring to legislative measures