[2021 Economic Policy] Public Institutions to Invest 65 Trillion Won in SOC Expansion... Expecting 28 Trillion Won in Corporate Investment

Government Announces '2021 Economic Policy Direction'
Launching Investment Projects Worth 110 Trillion Won to Achieve 'Rapid Economic Recovery'

[Sejong=Asia Economy Reporter Kim Hyunjung] The government’s key card for this year’s ‘economic rebound’ is an investment project worth 110 trillion won. It has increased by about 10% (10 trillion won) from last year’s level of 100 trillion won, with public institutions expected to invest 65 trillion won, private investment projects 17.3 trillion won, and companies about 28 trillion won.

First, the investment amount by public institutions, which will serve as the catalyst for related projects, is at an all-time high. It increased from 55 trillion won in 2019 and 61.5 trillion won last year to 65 trillion won. The investments mainly focus on expanding social overhead capital (SOC) infrastructure such as public housing, railroads, highways, and ports, as well as power plant construction and facility reinforcement, and investments in the Korean New Deal.

To accelerate execution speed, the government plans to hold monthly investment execution inspection meetings and improve the efficiency of execution management systems between headquarters and branches by the end of next year. Until an integrated management system is established, public institution investments will be managed so that execution and contract performance monitoring and aggregation can be done within seven days.

In particular, SOC investment is expected to act as a key pillar in boosting economic vitality across both public and private sectors. First, next year’s living SOC investment will expand to 11 trillion won, an increase of 500 billion won compared to this year. A total of 438 living SOC complex projects will be selected and promoted, and by 2022, 30 trillion won in national funds will be invested to expand and complexify living SOC facilities such as libraries and gymnasiums. To enhance tangible results, project methods will be diversified, such as combining schools and parks in the 3rd new town with public rental housing and living SOC.

Additionally, old government buildings and idle national properties will be developed into mixed-use complexes such as ‘government buildings + rental housing’ starting next year as part of expanding public housing. Seven mixed-use development projects will be promoted in 2021, with construction starting on a total of 1,400 housing units (about 690 billion won). Furthermore, strategic environmental impact assessments will immediately commence for routes requested for investigation, such as the Siheung-Songpa highway private investment project, to shorten project implementation periods. The third-party announcement of routes with completed strategic environmental impact assessments, such as the Pyeongtaek-Siheung highway expansion and Sasang-Haeundae highway, will also be promptly pursued. In addition, project management will be strengthened to ensure timely opening and groundbreaking of ongoing projects such as GTX and the Shinansan Line, and new private investment projects will be reviewed. Moreover, port redevelopment projects and infrastructure investments, such as the Incheon New Port and Pyeongtaek-Dangjin Port hinterlands, will proceed without delay, with investments for safety reinforcement of aging infrastructure such as roads, railroads, and reservoirs increasing from the existing 5.4 trillion won to 6.1 trillion won.

Alongside this, the government will actively support the resolution of investment difficulties through institutional improvements and stakeholder coordination to discover new corporate investment projects worth 18 trillion won. It will also support the commencement of projects worth over 10 trillion won within next year among already discovered corporate investment projects, aiming to lead a total corporate investment of 28 trillion won. Prominent corporate projects currently include Hwaseong Complex Theme Park (4.6 trillion won), Goyang Content Park (1.8 trillion won), Yongin Semiconductor Cluster (1.6 trillion won), and data centers (3 locations, 1.4 trillion won).

Furthermore, linked with the Korean New Deal, the government will expand and strengthen the current Corporate Investment Support Meeting from January next year to provide one-stop support for resolving corporate investment difficulties across ministries. Corporate difficulties will be identified and managed integrally through various channels such as central ministries, local governments, and public institution online applications. Additionally, a joint New Deal Investment Support Meeting involving related ministries will be established to support the resolution of corporate difficulties.

Investment in private projects worth 17.3 trillion won will also be pursued. In addition to existing types such as roads (8 trillion won) and railroads (2 trillion won), new types of projects will be discovered in line with the Korean New Deal, such as green smart schools (800 billion won) and buffer storage facilities (300 billion won), and the execution of other private projects totaling 3.5 trillion won will be carried out without delay.

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