Geonhyeop Proposes to the Ministry of Economy and Finance Measures to Revitalize Private Investment Projects Including Easing Minimum Capital Adequacy Ratio Requirements

The Korea Construction Association announced on the 30th that it has proposed 'Institutional Improvement Measures for Revitalizing Private Investment Projects' to the Ministry of Economy and Finance to enable the private sector to lead economic recovery.

The association presented improvement measures from three perspectives: 'Creating conditions for revitalizing private investment projects,' 'Resolving difficulties in project implementation,' and 'Restoring trust in private investment projects.'

First, to create conditions for revitalizing private investment projects, they argued that the following are necessary: ▲activation of government-notified projects ▲establishment of standards for improving aging and existing infrastructure to enable various types of projects to be promoted ▲creation of conditions for activating new types of projects following the introduction of the principle of comprehensiveness ▲introduction of the principle of comprehensiveness for ancillary projects ▲expansion of eligibility investigation agencies to specialized institutions to facilitate the swift implementation of privately proposed projects.

Along with this, to resolve difficulties in project implementation, they proposed: ▲relaxation of the minimum equity ratio ▲improvement of the profit-sharing system for fund refinancing ▲establishment of national treasury support standards for reconstruction projects of aging sewage treatment plants (undergrounding and modernization) ▲increase in the national treasury support rate for wastewater reuse facilities ▲recognition of losses in freight revenue due to COVID-19 and losses in private railway connection fare settlements as force majeure, and expansion of support from the competent authorities. Additionally, they added that projects with completed proposal reviews under the Private Investment Act should be exempted from feasibility studies under the Local Finance Act to improve the unreasonably overlapping administrative procedures.

To restore trust in private investment projects, they proposed: ▲strengthening government-level publicity so that the public can socially empathize with the increased public convenience and economic effects of private investment projects ▲avoiding unilateral fiscal conversion of private investment projects ▲strengthening the expertise of the competent authorities.

Chairman Kim Sang-su said, "To timely establish infrastructure for industrial foundation and expansion of growth engines, and to supplement the accompanying fiscal limitations, it is necessary to actively utilize private capital," adding, "Conditions for revitalizing private investment projects and resolving difficulties in project implementation must be promptly established so that the private sector can actively propose and promote projects."

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