Construction Industry Requests SOC Budget of Over 32 Trillion Won for Next Year

The construction industry has requested the government to allocate more than 32 trillion won for the social overhead capital (SOC) budget for next year.

The Korea Construction Association announced on the 17th that "amid worsening domestic and international economic conditions, we have proposed to the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport to allocate more than 32 trillion won for next year's SOC budget to overcome concerns about economic slowdown and to establish a foundation for balanced regional development."

The 32 trillion won SOC budget figure is based on the Korea Institute of Construction Industry & Economy's research titled "Stagflation Crisis, Direction of SOC Investment." According to the data, to achieve the Bank of Korea's projected economic growth rate of 2.5% for next year, SOC investment amounting to about 58 trillion won, which is 2.52% of the gross domestic product (GDP), is necessary, and thus an SOC budget allocation exceeding 32 trillion won is required.

The Korea Construction Association stated, "As the damage from COVID-19 has not yet been fully recovered and difficulties in the low-income economy persist, concerns about stagflation are increasing due to external risks such as raw material supply shortages caused by the Russia-Ukraine conflict, inflation, and interest rate hikes in major countries," adding, "To promptly recover the livelihood economy, expanding SOC investment, which is the most effective for economic growth and job creation, is urgently needed."