The construction industry stated that in order to achieve the economic growth rate forecast of 1.6% (according to the Bank of Korea) for next year, the social overhead capital (SOC) budget needs to be allocated at over 30 trillion won.
The Construction Association of Korea welcomed the government's announcement on the '2026 budget proposal and the 2025-2029 National Fiscal Management Plan' on the 29th, noting that the SOC budget was increased by 2 trillion won compared to the previous year.
The association expressed disappointment that, despite the total expenditure budget proposal of 728 trillion won for next year, which is an 8.1% increase from the previous year, the SOC budget only increased by 7.9%. In particular, the SOC budget, which was set lower than those for culture (8.8%), defense (8.2%), and welfare (8.2%), is seen as insufficient for the recovery of the construction market.
The association noted, 'The recent downturn in the construction market has a negative impact on economic growth, and according to the Bank of Korea and others, construction investment is expected to plummet by 8.3% this year,' adding that 'there is a need for an expansion of the SOC budget through discussions on the budget proposal in the National Assembly to revive the stagnant construction market.'
In particular, an increase in the budget for the road sector, which has been cut by about 1 trillion won compared to the previous year, is necessary to promote regional balanced development and stimulate the construction market, and there is also a need for budget allocation to ensure safety.
Han Seung-gu, president of the Construction Association of Korea, said, 'It is essential to allocate more than 30 trillion won for the SOC budget so that the construction industry, a pillar of our economy's domestic demand, can rise again and contribute to economic growth and job creation.' He added, 'The construction industry will also make every effort to create a safe workplace free from disasters through diligent construction.'