The Korea Construction Association Requests Over 31 Trillion Won in Government SOC Budget for Next Year

The Korea Construction Association announced on the 23rd that it has requested the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport to allocate more than 31 trillion won for next year's social overhead capital (SOC) budget to overcome the economic crisis, achieve balanced regional development, and ensure public safety.

A construction site at an apartment in Seoul city / Photo by Yonhap News

The association emphasized, citing data from the Korea Construction Industry Research Institute, that the appropriate scale of SOC investment considering next year's economic growth rate and inflation is 31 trillion won. Earlier, the Bank of Korea forecasted in January this year that next year's economic growth rate would be over 2.4%. To achieve this, SOC investment of about 59 trillion won, which is approximately 2.49% of the Gross Domestic Product (GDP), is necessary, and the government should prepare a budget of more than 32 trillion won, the association stated.

An association official said, "Due to the impact of economic downturn and high inflation, real income is decreasing, and difficulties in the livelihood economy continue," adding, "With worsening external conditions, the trade balance has recorded a deficit for 14 consecutive months, and this year’s economic growth rate is expected to be the lowest since past economic crises, excluding those periods."

He continued, "We must swiftly overcome the current crisis and establish a foundation to expand growth potential for continuous economic growth amid rapid changes in economic and social conditions to leap forward as a global leading country," adding, "Expansion of SOC investment, which is the most effective for economic growth and job creation, is necessary."

He particularly expressed concern that "SOC serves as the foundation for citizens' lives and industrial production activities, playing an important role in strengthening national competitiveness; if not supplied in a timely manner, social costs will increase, potentially causing greater fiscal burdens in the future."

He also stated that expanding SOC investment is necessary to improve living and economic conditions in local areas and to create jobs by encouraging corporate investment. Kim Sang-su, the association president, said, "Recently, local cities are facing the risk of extinction, and the polarization between the metropolitan area and local regions is intensifying, raising concerns about social instability and a decline in national competitiveness," adding, "We must expand SOC investment to enhance infrastructure in underdeveloped areas, significantly improve transportation convenience and industrial activity conditions, and promote balanced national development."

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