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In accordance with recent world trends, Private Financing Initiative (PFI) has been introduced and tried on projects in Korea. As a new way of financing, PFI was expected to solve insufficient fund problems in developing infrastructure projects in Korea. But few infrastructure projects in Korea have been going well with application of PFI as planned. To cope with the global market and to attract foreign investment in Korea, more sophisticated ways of project financing in terms of risk management should be considered. The objective of this thesis is to identify the current situation and problems of Korean PFI, compared with successful PFI application in other countries. The basic scheme and key factors of the PFI will be reviewed at the beginning. Also, this thesis analyzes the Incheon International Airport Railroad Project, one of the pioneer PFI cases in Korea in order to identify the current status of PFI application in Korea. As key factors of the project, financial structure and risk management will be mainly dealt with. Based on the analysis of these key factors, this thesis will discuss about insufficient preparation, expensive cost, and unskillful risk management as problems and lessons from the pioneer case of Korea