Ministry of Land, Infrastructure and Transport Leads Mobility Innovation and Strengthens Fairness at Construction Sites through Proactive Administration

Infographic for the preliminary subscription starting from the second half of next year (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] The Ministry of Land, Infrastructure and Transport (MOLIT) is leading support for mobility innovation and strengthening fairness at construction sites through 'active administration.' Accelerating housing supply in the metropolitan area with 60,000 pre-sale units was also cited as a key task of active administration.

MOLIT announced on the 17th that at the 38th Vice Ministerial Meeting held that day, it presented key active administration tasks and best practices through the 'Active Administration Relay Presentation' involving major government ministries.

The Active Administration Relay Presentation at the Vice Ministerial Meeting is an event where 27 ministries attending the meeting and 2 agencies at the bureau level consecutively present their key active administration tasks and best practices. It is scheduled to be held seven times from the 3rd of this month until the 22nd of next month.

Through the presentation that day, MOLIT selected four major implementation tasks: ▲supporting the growth of innovative companies ▲strengthening fairness at construction sites ▲accelerating housing supply in the metropolitan area ▲full-scale green remodeling, and announced that it is focusing on promoting them.

In the field of supporting innovative company growth, MOLIT is focusing on measures to revitalize small and medium-sized ventures in land, infrastructure, and transport, such as platform mobility innovation, establishment of the Land, Infrastructure and Transport Innovation Fund, and expansion of sales channels for excellent technologies. In particular, in July, MOLIT established a Corporate Growth Support Team to expand the application of excellent innovative technologies held by SMEs in the field and launched a Corporate Growth Support Committee chaired by the minister, demonstrating proactive administration.

To strengthen fairness at construction sites, MOLIT is expanding the public client wage direct payment system to other public institutions, lowering the payment threshold from 50 million KRW to 30 million KRW, and promoting the spread of the system to the private sector to eradicate construction wage arrears.

MOLIT also stated that it will finalize the 3rd New Town metropolitan transportation improvement plan within the year, proceed without delay with the supply of 60,000 pre-sale housing units starting in the second half of next year, and fully promote green remodeling through public buildings and public rental housing to create key outcomes of the Korean New Deal.

MOLIT plans to check and support the progress of active administration through minister-chaired urgent issue inspection coordination meetings and the Corporate Growth Support Committee, while providing exceptional benefits such as the highest grade of performance pay and special promotion points to outstanding active administration public officials.

MOLIT also announced best practices of active administration that day.

MOLIT cited the institutionalization of platform businesses for mobility innovation as the first best practice. With the enforcement of the Transport Business Act, which institutionalizes platform mobility businesses, scheduled for April next year, MOLIT proactively applied the regulatory sandbox system in advance to support early market entry of platform transportation companies supplying customized services such as Banban Taxi. Currently, through the regulatory sandbox, franchise taxis such as ▲'Banban Taxi' with voluntary ride-sharing discounts ▲'Starix' with pre-determined fare systems ▲'Papa' allowing renter driver mediation ▲'Macaron' with app meter-based dynamic fare systems have entered the market.

Accordingly, MOLIT evaluated that the mobility market has been further activated, with the franchise taxi service areas and the number of vehicles increasing more than threefold and sixfold respectively, from 8 areas and 2,600 vehicles to 26 areas and 16,264 vehicles in just five months since March.

MOLIT also cited the eradication of wage arrears at construction sites as a best practice. Through the Job Committee involving labor, management, experts, and government, MOLIT prepared the 'Improvement Plan for Direct Wage Payment System' in May and restructured the wage payment system by separating labor cost accounts based on it. As a result, the wage payment system, which was vulnerable to construction company seizures, has been supplemented, creating a foundation where construction workers' wages can be thoroughly protected.

Son Myung-soo, MOLIT’s 2nd Vice Minister, said, "To overcome the economic crisis caused by the novel coronavirus disease (COVID-19) and promote livelihood stability, bold innovation and active administration are more important than anything else," adding, "Since many of MOLIT’s policy issues are directly related to the economy and people's livelihoods, we will actively support active administration to contribute to the growth of innovative companies and a fair economy, and strive harder to create policy outcomes that many citizens can feel."