Vice Minister Ki Jae: "We will execute 3.3 trillion won in consumption and investment in the first half of the year"

Early Ordering and Advance Compensation for Private Investment Projects Promoted in Unstarted Construction Projects

Koo Yoon-chul, 2nd Vice Minister of the Ministry of Economy and Finance, is speaking at the 1st Private Investment Activation Promotion Council of 2020 held on the 14th at the International Conference Hall of the Government Seoul Office Annex. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jang Sehee] The government announced that it will prepay consumption and investment plans worth 3.3 trillion won within the first half of the year.

On the 14th, Koo Yoon-cheol, Vice Minister of Strategy and Finance, held an emergency fiscal management inspection meeting at the Government Seoul Office and stated, "All public sectors including central government departments, local governments, and education offices plan to execute consumption and investment worth 3.3 trillion won as quickly as possible within the first half of the year." The meeting was convened to discuss follow-up measures for domestic demand support through prepayment and advance purchase announced at the 4th Emergency Economic Meeting.

Vice Minister Koo said, "The public sector will boldly break away from existing spending practices and take the lead in introducing prepayment and advance purchase systems to create early domestic demand worth 2.2 trillion won." He added, "In particular, the public sector will play a role as a catalyst for virtuous consumption by prepaying business promotion expenses to the dining industry, which is struggling due to COVID-19, and by purchasing stockpiled goods and assets as early as possible."

He continued, "The government and public institutions will advance the timing of construction and equipment investment execution to inject 1.2 trillion won early." He emphasized, "To ensure funds circulate quickly at construction sites, we will promote early ordering of projects not yet started, purchase of materials, and advance payment of compensation for private investment projects."

Meanwhile, the fiscal authorities plan to revise and distribute today the budget execution guidelines that stipulate special cases for advance payment of customized welfare expenses, consignment service fees, overseas travel expenses, and business promotion expenses.

This content was produced with the assistance of AI translation services.