As economic trade between Korea and China has been encouraged with the rapid growth of Chinese economy and port competition in Northeast Asia, Korean government is trying to promote development and consolidation of ports to cope with the lack of facilities. Thus, many projects for port development have been propelled including the enactment the 'Private investment promotion law for social overhead capital 1994.' However, there are still some unsettled issues since considerable part of risk is still allocated to the Government when it has to support the private businesses in these port investments whenever unexpected problems arise. Allocation of risk among the participants - in this case especially - is a very subtle issue, however, it was revealed that not many precedent researches were done on the subject. In my previous research, I classified and analyzed 4 principle risks i.e, construction, management, financial and social risk. This research investigates the reasonable allocation of the risks among the participants using the Hierarchial Fuzzy Process. In the result of analysis, responsibility of private party is the most important and it must put the responsibility before Government' roll concerned. Also, this research displayed and proposed the direction of management method on port development in a view of minimizing risk and maximizing initiative of a private party.

• Yu-Chang Seong
• Myung-Ou Youn