Though government is pushing forward the policy to remove public institution so as to ensure restraint of overpopulation in the metropolitanarea and balanced development of the territory and the individual facilities which became inappropriate facilit...
Though government is pushing forward the policy to remove public institution so as to ensure restraint of overpopulation in the metropolitanarea and balanced development of the territory and the individual facilities which became inappropriate facilities in the downtown due to rapid urbanization of neighboring area are pushing forward the removal of relevant institution, irrespective of government policy, the research on method to raise fund, i.e., the important factor for success/failure of removal project is insufficient. The method of public institutions to raise fund was simple way which sold land suitable for removal and input government fund for the deficiency. This is because there was no problem in inputting government fund as there were not so many removal institutions and the removal was not intensivelydone in any specific period. Since the removal plan of government is intensively converged in any specific period these days, however, government will undergo financial burden if the past method is adopted. If unsold, the government may bear debt. If the land suitable for removal located in important position is simply sold at low price when the concept of autonomous management is expanded to public sector, the relevant public institution may object. Especially, if the land is sold to private sector, it is virtuallyimpossible to utilize in public use and to collect the development profit. Thus, the disposition method should be selected with care. Considering this problem, it is essential to dispose the land suitable for removal by increasing its value instead of simply selling at the present state. For this objective, methods such as concession or trust may be utilized. Specifically, public sector may actively participate in the development of land suitable for removal through PF method in concession type which is recently applied in order to ensure public property in reasonable level and to collect development profit. When trust method is applied, fund can be easily raised by trust of national or public land or collateral trust. However, since PF method in concession type shows low equity rate of public sector in the enforcement process, the guarantee of public property and collection of development profit is lower than expected level. Thus, the local self-governing body of the region shall participate additionally to increase equity rate or to enhance the screening of public offering proposal in order to eliminate problem.