PURPOSES : A North Korean private-financed highway is constructed in this study using an appropriate financing introduction method.

METHODS : Based on the North Korea traffic demand prediction model, we assume that private finance investors construct three lines in North Korea. In addition, private finance can recover invested money with real toll income via the South Korean toll system in 30 years.

RESULTS : The results indicate that private finance parties can recover invested money in two lines in North Korea within 30 years, whereas the remaining line cannot. A collection period is 30 years, the future traffic volume, utilization rate by vehicle type, and toll rate based on the Korea Highway Corporation system are assumed.

CONCLUSIONS : The public private partnership market undergoes many types of changes. In the early stages of private investment projects in England, the toll model is implemented, followed by the shadow toll model. Subsequently, the availability payment model is implemented. To promote private finance funding for the North Korean expressway, the South Korea government should subsidize money for uncollectable lines. Using these models, the availability payment and hybrid annuity model will reduce the risks of private parties in North Korea private financed highways.