Construction projects worth W12.6tr to break ground this year: govt

South Korea’s government will expand support for private investors so that ongoing infrastructure projects worth 12.6 trillion won ($11.1 billion) can break ground within the year, according to the Ministry of Economy and Finance on Wednesday.

The 13 projects, most of which were originally slated to kick off in 2020 or later, include the construction of a sewage treatment facility in the southern city of Gumi and a highway to connect Pyeongtaek with Iksan.

“The government will actively select new private investment projects that are closely related to the people’s daily lives, such as environmental facilities,” said Deputy Prime Minister and Finance Minister Hong Nam-ki in a ministerial meeting held to discuss economic revitalization.

He also pledged to alleviate the financial burden of private investors by raising the credit guarantee ceiling within April and to freeze or lower the fees of privately funded highways within the year in order to encourage people to use the infrastructure.

In line with the fiscal policymaker’s promises, a special task force is to kick off Thursday to explore the infrastructure sector more closely as a way to boost the nation’s stalled economy and create jobs.

During the meeting, the government also presented an action plan on legislation intended to improve the efficiency of policy finance in innovative growth.

The discussions took place amid mounting criticism that the government is not doing enough to fund high-risk businesses, despite an overall expansion in fiscal spending.

“We shall work to allocate the right money to the right business and to minimize the blind spot of policy finance,” Hong said, introducing the government’s forthcoming Innovative Growth Intelligence system.

The system has been devised to keep track of government funds to support innovative growth and to analyze the performance of beneficiary companies.

By Bae Hyun-jung (tellme@heraldcorp.com)