Since 2005, the Korean government has been carrying out a project to activate social capital by utilizing private funds in the form of BTL, a rental form of private investment business. The establishment of childcare centers is included in this project in order to ensure the quality of childcare services with large funds, since childcare centers run with small private funds tend to pursue profit-making and the quality of services provided vary to a great extent.
The purpose of this study was to explore possibilities for childcare-related private businesses to participate in the establishment and operation of BTL-type childcare centers and to develop an appropriate implementation model. The results of this study are as follows.
Firstly, this study identified the characteristics of the system and policy in terms of the establishment and operation of childcare centers as well as issues surrounding financial support. The current situations of and policies on childcare including establishment scale, children, characteristics in childcare center operation, childcare subsidies, and regulations for financial management were reviewed.
Secondly, the circumstances surrounding supply and demand in town (eup), sub-county(myon), block(dong), city(shi), county(gun), district(gu) or city(shi), province(do) were identified. Based on this information, areas in need of more supply were estimated.
Thirdly, we explored the structure of BTL-type public facilities and businesses, the current circumstances of BTL-type businesses and comprehensive childcare centers under establishment, and reasons for shortcomings in the above areas.
Fourthly, three different possibilities for the establishment of BTL-type childcare centers were explored. 1) Private businesses in the field of early childhood education and care and non-profit corporations could possibly establish childcare centers.2) companies that are obligated to operate a childcare center for children of employees could run a BTL-type childcare center as a partial fulfillment of these requirements. 3) BTL type childcare centers could be established by city(shi), county(gun), district(gu) and run by the companies that participate in the project. In fact, businesses in the field of early childhood education and care showed a positive sign of agreement on the condition of autonomous management, and some city(shi), county(gun), district(gu) areas were flexible in acceptance of this condition.
Fifth, this study proposed a model for the establishment of BTL-type childcare centers. Model criteria was set and the suitability and appropriateness of the business were examined. Preconditions such as facilities, quality of service and expenses, construction costs, operational expenses, rates of companies' own capital, the term of redemption, operating system; and the structure of the BTL childcare center project including RFP/Agreement such as MOU between the subjects and market inducements were presented.