Construction Association "Next Year's SOC Budget to Be Set at Over 30 Trillion Won"

The Korea Construction Association announced on the 28th that it has conveyed the construction industry's opinion to the National Assembly that the SOC budget for 2020 should be set at over 30 trillion won to leap forward as a leading country in the post-COVID-19 era.

The 30 trillion won SOC budget is based on the Korea Construction Industry Research Institute's study titled "Appropriate SOC Investment for Economic Recovery and Revitalization of Domestic Demand." To achieve an economic growth rate of over 2.5% in 2022, SOC investment of about 53 trillion won (government + local governments + private investment + public enterprises), which is approximately 2.52% of GDP, is required, and to this end, an SOC budget of over 30 trillion won must be allocated.

Chairman Kim Sang-su said, "In the second quarter of this year, the income of the top 20% income group increased by 1.4% compared to the same period last year, but the bottom 20% decreased by as much as 6.3%," adding, "The economic shock caused by COVID-19 has been concentrated on low-income groups, raising concerns about worsening income inequality and polarization."

Chairman Kim stated, "SOC investment is the most effective means to secure jobs and restore income, and it will also contribute to social stability such as increasing household income," emphasizing, "It is essential to allocate an appropriately sized SOC budget for next year."

An association official said, "SOC investment has been sufficiently proven as a means to overcome crises during past economic downturns," adding, "In particular, construction investment breathes life into various related industries such as materials, equipment suppliers, and construction workers, creating jobs and revitalizing the domestic economy."