Minister Kim Yoon-deok of the Ministry of Land, Infrastructure and Transport said on the 14th, "We will do our best to promote local economic recovery and construction investment," adding, "We will actively consider the 'Local Social Overhead Capital (SOC) New Deal' project."
On the same day, Minister Kim said at the Economic Ministers' Meeting held at the Government Seoul Complex in Jongno District, Seoul, "Recently, the housing market in the metropolitan area has overheated, while the provinces continue to be stagnant, worsening the polarization of the real estate market."
Minister Kim diagnosed the local real estate market, stating, "The increase in unsold homes concentrated in the provinces and the contraction of construction investments directly linked to the regional economy are further accelerating the local economic downturn."
Accordingly, the government announced a plan to reinforce 'construction investment in the provinces.' This plan includes 56 tasks, such as ▲supplementing demand for local real estate ▲prompt execution of SOC budgets ▲preventing public project failures and delays ▲mitigating construction cost burdens.
Minister Kim emphasized the need to proactively resolve unsold homes that are burdensome on the local housing market, stating, "We will swiftly promote public projects to ensure that liquidity circulates in the region and also realistically adjust construction costs to be able to carry out projects at fair prices and on time."
He promised, "We will also establish a foundation for stable investment, such as expanding the supply of materials and training skilled workers." He added, "The effects of this plan will be delivered not only to construction companies but also to small subcontractors and construction workers, so that warmth can circulate in the frozen local economy."
Minister Kim also indicated that he would additionally promote projects at the central government level to support local governments' infrastructure safety management. He emphasized, "Although this is not included in the current plan, I will actively consider a project called 'Local SOC New Deal,' which responsibly supports the safety management of local government infrastructure that cannot receive sufficient investment due to poor financial conditions."