Built-Transfer-Lease (BTL) type projects were introduced as a private participation program in non-profit public facilities such as school, dormitory, public health care center etc. Private investors build facilities and transfer the ownership to government. Then the government leases the facilities to the private investors and pay for the rent for 10-30 years which cover the construction cost and the interest and operation cost. Since BTL projects was launched in 1995, it has been criticized to transfer heavy financial burden from the present to the future generations, which occur intergenerational equity problem and financial rigidity. In this context, in order to support National Assembly's decisions related to BTL business such as BTL investment limit, National Assembly Budget Office researched and evaluated financial administrations of BTL businesses and promotion processes of each BTL institutions.
As a result, government needs to pay 22.7 billion$ (1$=1,250won) to private investors for next twenty years. The overall economic effect is slight positive. However it turns out that there is intergenerational inequity since most of positive consumer welfare and GDP growth happen in the former half but negative effect in latter half of the projects. Not only did government fail to consider thoroughly of future financial burden in BTL business, but it also fails to utilize creativity and efficiency of the private efficiency during propulsion.
First of all, it is necessary to include operating expenses with total expenses in BTL business credit limit and report to the National Assembly. Secondly, evaluation report on propriety and eligibility of BTL projects planned to be launched next year should be reported to the National Assembly it is also necessary to include government disbursement for BTL business of current year, and for remaining periods until the end of the investor's management & operating right together. In order to implement business management infrastructure, government should establish business administration system like British one by modifying National Financial Law.
At last, it is necessary to establish national accounting transactions standards regarding BTL business.