[THE INVESTOR] The government will open rail network projects in Korea to the private sector, and attract nearly 20 trillion won (US$ 17.1 billion) private sector funds into the field over the next 10 years.

According to the plans revealed by the Ministry of Land, Infrastructure and Transport, rail projects across the country will be opened to the private sector. Until now, the majority of rail projects open to the private sector have been concentrated in Seoul and surrounding regions. 

The government is also reviewing a range of measures to make rail projects more attractive as investments for the private sector.

At present, there are nine rail routes operated by the private sector. However, no new projects have been suggested since 2010 due to the high costs involved, the ministry said.

As part of the plans, the government will speed up the review process for the 14 projects that have been considered for the private sector. The government plans to complete the review process and draw up guidelines for assessing plans for private sector-operated rail projects during the second half of the year.

In order to attract investment, the government will consider business models other than that based on transportation fees.

In addition, private rail operators will be allowed to operate express services, and to charge different fees for faster services.

By Choi He-suk (cheesuk@heraldcorp.com)