Public–private Partnerships for Urban Projects: A Korean Case of Partnership Failure

In past literature, key attention has been paid to public-private cooperation as a condition for partnership success. However, there have been few studies on the circumstances in which public and private actors choose not to cooperate. Drawing upon the theories related to contract-based and relational cooperation, this study examines when and why public and private actors opt not to cooperate while taking account of local contexts that undermine cooperation. The study conducts a case analysis of the Yongsan project in Korea that had ended up in termination. It suggests that although the actors would have negotiated a deal that maximizes their benefits within options available, they might choose not to cooperate when they have lost assurance of achieving self-interests and have little practical control over the project. The study emphasizes the need to pay greater attention to local contexts which shape the business deal and public–private relationships for cooperation.