Democratic Party "Open to Including SOC Construction in Korean New Deal and Considering It"

Kim Tae-nyeon, the newly appointed floor leader of the Democratic Party of Korea, is attending the Supreme Council meeting held at the National Assembly on the 8th and delivering an opening remark. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] In addition to digital projects, social overhead capital (SOC) construction such as railroads is expected to be additionally considered under the Korean New Deal initiative.

Kim Seong-hwan, head of the Korean New Deal Task Force of the Democratic Party's COVID-19 National Crisis Overcoming Committee, said in a phone interview with Asia Economy on the 8th, "The government has primarily set the Korean New Deal plan focusing on non-face-to-face and digital sectors, and additional tasks related to green (environment) and bio industries will be derived through party-government consultations," adding, "SOC can also be included."

He continued, "(The Korean New Deal) differs from the Tennessee Valley development approach during the Great Depression in the U.S., but conceptually, it is not very different. We will keep the SOC projects open for consideration without closing them off."

The day before, the government announced the direction of the Korean New Deal focusing on accelerating digitalization and promoting non-face-to-face activities, and plans to announce detailed measures early next month. Although it distinguished itself from the existing civil engineering-centered stimulus New Deal policies, the Democratic Party does not exclude SOC construction projects from future initiatives. Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki also mentioned in a briefing after the emergency economic meeting on the 22nd of last month that "an expanded concept of SOC New Deal, including living SOC, could emerge."

In particular, the Democratic Party pledged to establish a rail-centered public transportation system through this general election. The plan includes upgrading conventional railroads (150 km/h) to quasi-high-speed rail (260 km/h), starting construction of the Jungang Line (Wonju~Jecheon) from this year, and reorganizing the railway operation system based on distance, speed, and usage patterns?operating long-distance routes as high-speed rail and medium- to short-distance routes as conventional rail. Additionally, Lee Nak-yeon, head of the Democratic Party's COVID-19 National Crisis Overcoming Committee, stated during a campaign in the Busan area before the general election, "We will work with the government to resolve various issues Busan faces, including the new airport issue."

SOC construction projects have strong demands from local regions. In the Busan, Ulsan, and Gyeongnam (PK) area, the Democratic Party has proposed a metropolitan railroad plan connecting Masan-Changwon-Busan-Ulsan. This is a core foundation of the strategy to form another 'mega-city' economic zone in the southeastern region besides the metropolitan area.

Kim Young-choon, a member of the National Assembly who is a leading candidate for the next Democratic Party mayor of Busan, said in a phone interview with Asia Economy on the same day, "While focusing the Korean New Deal on digital and green sectors, structurally necessary SOC plans can be advanced ahead of schedule," adding, "I believe the PK region's railroad network plan can be sufficiently reviewed."

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