Choi Sang-mok "Construction Market Difficult... Will Take Steps to Revitalize Construction Investment"

Amid a sluggish real estate market and the workout (corporate rehabilitation) of Taeyoung Construction, which have frozen the construction industry, Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, announced that "policy efforts to revitalize construction investment will be strengthened."

On the morning of the 29th, at an emergency economic ministers' meeting held at the Government Seoul Office in Jongno-gu, Seoul, Deputy Prime Minister Choi said, "The construction industry is struggling due to the sluggish real estate market," and added, "In the first half of the year, the government, public institutions, and private capital will swiftly execute social overhead capital (SOC) investments in the public sector at an all-time high level."

[Image source=Yonhap News]

First, the public sector will play a pioneering role in construction investment. Not only will SOC investments be executed at record levels, but to support this, contract special measures such as expanding the advance payment limit (from 70% to 80%) and shortening the payment period (from 14 to 7 days) will also be extended until the first half of next year.

Support for expanding private construction investment will also be pursued. Deputy Prime Minister Choi stated, "We will closely support accelerating the establishment of advanced industrial clusters as much as possible, and the regional revitalization investment fund will be launched early within February," adding, "We will significantly ease the industry's cost burdens such as development charges and school site charges, and actively improve unreasonable location regulations such as farmland and mountainous areas."

Regarding the Korean economy this year, he gave a positive assessment, saying, "Our economy has been gradually improving since the second half of the year." He said, "Inflation, which started at the 5% level at the beginning of the year, has stabilized downward to 3.2% this month, the economic recovery centered on exports is becoming visible, and employment continues to show favorable trends."

He forecasted, "The recovery trend centered on exports is expected to continue next year," but also noted, "As the speed of recovery varies by sector, difficulties in people’s livelihoods persist, and demands for structural reforms such as expanding growth potential are expected to increase."

He emphasized that the focus of next year's economic policy direction will be on four areas: ▲ Recovery of the livelihood economy ▲ Management of potential risks ▲ Realization of a dynamic economy ▲ Strengthening policies for future generations. Deputy Prime Minister Choi said, "We will devote all efforts to recovering the livelihood economy through price stabilization, support for vulnerable sectors such as small business owners, and revitalization of domestic and regional economies," adding, "We will thoroughly manage potential risk factors such as real estate project financing (PF), household debt, and supply chains, and seek fundamental improvement measures." The government plans to supplement the economic policy direction through this meeting and announce it next week.

Deputy Prime Minister Choi said, "Being appointed as Deputy Prime Minister for Economy in a challenging domestic and international economic situation brings a heavy sense of responsibility," and stated, "We will become a stronger 'economic one team' than ever before to improve the livelihoods of the people and focus our policy capabilities on enhancing the dynamism of our economy."

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