In Korea, rural village improvement has mainly been led by goverment investment. This approach, however, has its own limit since there are so many village to be improved while the budgetary sources are restricted, As an alternative, inducement of private investments to these area is considered in order to promote rural village improvement. The possibility of inducing private investments to the rural village improvement depends on the location of the village. The possibility may be highest in the sub-urban area since expected benefits from land development is usually high. One desirable approach to induce private investment to these area is the cooperative development system. Residents, private investors and governments plays its own role, independently and cooperatively, But benifits from the investment to improve rural village in general plain area are so low that it is difficult to induce the private investments to these area. In that case, indirect development system will be a proper strategy which maintaining government-led development method as usual, expanding the participation of private developers such as the construction companies. In general, rate of returns from investment to the rural sectors is lower than that to the other sectors, therefore financial support such as the long- term, low loan rate and a partial value-added tax exemption should be given to the investors to the rural village improvement projects.