Ministry of Land, Infrastructure and Transport to Release KRW 12.4 Trillion for SOC in First Half of This Year in Advance

The Ministry of Land, Infrastructure and Transport will expedite the execution of the social overhead capital (SOC) budget of 12.4 trillion won in the first half of this year. This corresponds to pre-executing 65.0% of the rapid execution management target (19.1 trillion won), marking the highest execution target rate ever.

Ministry of Land, Infrastructure and Transport / Photo by Hyunmin Kim kimhyun81@

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On the 16th, the Ministry of Land, Infrastructure and Transport announced the "2024 SOC Project Rapid Execution Plan" at the Emergency Economic Ministers' Meeting and the Price-Related Ministers' Meeting. Amid a sluggish private construction investment due to the downturn in the construction market, the government aims to play a catalyst role in economic recovery by expediting the SOC budget execution.

This year, the Ministry of Land, Infrastructure and Transport's SOC budget increased by 5.3% from the previous year to 20.8 trillion won. By sector, it is approximately ▲8 trillion won for roads ▲8.1 trillion won for railroads ▲900 billion won for aviation and airports ▲1.8 trillion won for regional and urban development ▲2 trillion won for logistics and others.

Among these, 12.4 trillion won, which corresponds to 65.0% of the rapid execution management target of 19.1 trillion won, will be executed in the first half of the year. This is the highest execution target rate ever. The annual execution rates were ▲59.2% in 2020 ▲60.0% in 2021 ▲56.6% in 2022 ▲61.2% in 2023.

Looking at the detailed plans by sector, 5.3 trillion won (67.5%) for roads will be expedited in the first half of this year. Major projects include the construction and maintenance of the Seoul~Sejong Expressway, Andong~Yeongdeok National Road, and Gwangmyeong~Seoul Private Roads. The Ministry of Land, Infrastructure and Transport will provide advance payments upon commencement for projects ordered in the first quarter, depending on the project scale and characteristics.

In the railroad sector, 4.6 trillion won (63.9%) will be expedited in the first half of this year. Major projects include metropolitan railroads such as the Greater Seoul Metropolitan Express Railroad (GTX) lines A, B, and C, and the construction of the Honam High-Speed Railroad. The Ministry stated that it will swiftly execute the budget focusing on ongoing projects with confirmed plans and will place contracts for new projects within the first quarter of this year.

For the construction of Gadeokdo New Airport, Jeju Second Airport, and airport noise countermeasures, 500 billion won (60.3%) will be spent in the first half of this year. The new airport construction projects will have execution strategies prepared for each promotion stage, and for subsidized projects, early ordering will be actively pursued.

In the regional and urban sectors, 1.1 trillion won (61.3%) will be executed in the first half of this year. Major projects include small-scale housing and old planned city renovations, as well as industrial complex development and support. The Ministry plans to promptly complete administrative procedures for national subsidy projects such as urban regeneration and to promote early ordering for directly implemented projects like industrial complex roads. Additionally, 900 billion won (64.1%) will be rapidly executed in the logistics and other sectors in the first half of this year, focusing on improving mobility convenience for transportation-vulnerable groups.

A Ministry of Land, Infrastructure and Transport official said, "To achieve the early execution target of 65.0% in the first half, we will establish a rigorous inspection and management system and thoroughly operate a safety management system prioritizing public safety."

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