Vice Minister of Economy and Finance: "Accelerating Private Investment Projects... Diversifying Ancillary Businesses Including Public Rental Housing"

Ministry of Economy and Finance Holds the 6th Fiscal Management Strategy Committee Meeting

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[Asia Economy Reporter Jang Sehee] The government is accelerating the promotion of metropolitan railway private investment projects. It is pushing for the revision of the 'Private Investment Act Enforcement Decree' to include ancillary businesses such as information and communication technology (IT) projects, public rental housing, and knowledge industry centers.

On the 19th, Ando Geol, Vice Minister of Strategy and Finance, chaired the '6th Fiscal Management Strategy Committee' at the Government Seoul Office, discussing plans to revitalize the development of state-owned land in 2022, review the promotion of metropolitan railway private investment projects, the progress of fiscal performance target management, and the results of in-depth evaluations of fiscal projects.

First, the types of ancillary businesses, currently limited to 17 categories, will be significantly expanded. Accordingly, the revision of the Private Investment Act Enforcement Decree is being pursued to allow various projects such as IT-related businesses, public rental housing, and knowledge industry centers.

Regarding this, a government official stated, "If profitability is supplemented through ancillary businesses, it can be included in the entire project, so it is expected to have a somewhat positive effect on private investment."

The preparation period for project commencement will also be shortened by up to about eight months. Plans are to conduct eligibility investigations and strategic environmental impact assessments concurrently. Vice Minister Ando emphasized, "We will also pursue measures to shorten the project period as much as possible, such as simultaneously conducting preliminary feasibility studies, private investment project eligibility investigations, and strategic environmental impact assessments."

For five metropolitan railway projects in non-capital regions, including Busan~Yangsan~Ulsan, Gwangju~Naju, and Daejeon~Sejong~Chungbuk, the government will first consider promoting them as private investment projects. It plans to actively utilize new project methods such as the mixed private investment method (BTL).

Regarding the development of state-owned land, the scope of developable state-owned property will be expanded from unused properties for more than five years to all general and administrative properties. In addition, the national investment limit will be increased from the current 30% to a maximum of 50%.

The government will also discuss measures to improve fiscal expenditure efficiency related to next year's budget formulation. It will promote the financial soundness of the Employment Insurance Fund, adjustment of diversified big data platform projects, efficiency in policy fund operations, and efficiency in agricultural and fishery policy insurance operations. Furthermore, for in-depth evaluation of fiscal projects, it selected tasks such as analyzing the investment performance of the first phase of the Saemangeum New Deal 300 and organizing competitive startup support project groups promoted among ministries.

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