Public Investment Target of 63.3 Trillion Won This Year... 55% Executed Early in the First Half

[Asia Economy Sejong=Reporter Dongwoo Lee] The government plans to accelerate the execution of investments by major public institutions by more than 50% in the first half of this year in response to the sharp economic downturn. The plan focuses on investing in essential infrastructure projects such as energy, transportation, and logistics to strengthen the role of public services for the stability of people's livelihoods.

On the morning of the 3rd, the Ministry of Economy and Finance held an emergency economic ministers' meeting at the Government Complex Sejong in Sejong City to discuss the '2023 Major Public Institutions Investment Efficiency Promotion Plan.' While continuing efforts to strengthen the financial soundness of public institutions, the government intends to carry out efficient investment execution in response to the economic conditions characterized by a low start and high finish.

First, the investment target for 27 major public institutions this year was set at 63.3 trillion KRW, with approximately 55% (34.8 trillion KRW) to be executed early within the first half of the year. Although the investment performance (33.9 trillion KRW) compared to the first half of last year slightly decreased, the execution rate increased by 3.7 percentage points. The major public institutions targeted include 26 institutions, excluding 13 financial institutions with small domestic real investment scale among the 39 institutions preparing mid- to long-term financial management plans, as well as the Korea Racing Authority.

National agenda and core service projects will proceed as scheduled. Projects such as the Asan-Cheonan Expressway (59.6 billion KRW) and the Dongducheon-Yeoncheon electrification (52.8 billion KRW) will reflect planned investments to ensure completion. Housing welfare projects worth 5 trillion KRW (Korea Land and Housing Corporation) for national housing stability, general railway projects worth 2.2 trillion KRW (Korea Rail Network Authority), nuclear power plant construction worth 2.1 trillion KRW (Korea Hydro & Nuclear Power), and household recovery and corporate normalization support worth 1.1 trillion KRW (Korea Asset Management Corporation) will be executed within the first half of the year.

To ensure efficient investment, the government will finalize investment plans through board resolutions at each public institution within this month and promote the establishment of detailed quarterly and monthly execution plans. To improve investment efficiency, the threshold for preliminary feasibility study targets for public institutions will also be raised. Previously, the criteria for preliminary feasibility studies were set at a total project cost of 100 billion KRW and institution/government burden of 50 billion KRW or more, but going forward, the criteria will be revised to a total project cost of 200 billion KRW and institution/government burden of 100 billion KRW or more to enhance project autonomy.

Regular monthly inspection meetings will be held to review the achievement status of this year's public institution investment targets. Excellent cases will be actively shared, and difficulties arising from execution by affiliated public institutions will be resolved.

Additionally, financial soundness management, which began last year, will continue concurrently. While strengthening efficient investment, internal management environment improvements will also be sustained. The government aims to reduce the debt ratio in the mid- to long-term financial management plans of public institutions from 187.6% last year to 169.4% by 2026. Furthermore, the debt ratio of 14 institutions with financial risks is planned to decrease from 336.4% to 265.0% during the same period.

[Image source=Yonhap News]

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