Ministry of Land, Infrastructure and Transport 2023 Key Work Plan
Strict Crackdown on Industry Illegal Activities... Cancellation of Worker Qualifications and Licenses
'One Team Korea' Overseas Orders $35 Billion+ Alpha
Minister of Land, Infrastructure and Transport Won Hee-ryong is delivering opening remarks at a meeting on jeonse fraud held on the 3rd at the Housing and Urban Guarantee Corporation (HUG) Western Management Center in the Federation of Korean Industries building in Yeouido, Seoul. / Photo by Heo Young-han younghan@
[Asia Economy Reporter Noh Kyung-jo] The government has decided to restructure the logistics market following the collective transport refusal incident by the Cargo Solidarity at the end of last year. It will also establish order in the construction industry by eradicating illegal activities by labor unions and curbing bid rigging. Through this, the government is determined to strengthen industrial competitiveness and become one of the top four overseas construction powers.
On the 3rd, Won Hee-ryong, Minister of Land, Infrastructure and Transport, announced the major work plan for 2023 at the Blue House State Guest House. The goal is to revitalize the land and transportation industry centered on the private sector.
The Ministry of Land, Infrastructure and Transport plans to prepare comprehensive institutional improvement measures, including the safe freight rate system, consignment system, and illegal multi-level schemes, at a logistics industry development council meeting with stakeholders and experts scheduled for March. To strictly punish illegal acts, the Cargo Vehicle Act will be amended in June to allow cancellation of qualifications and criminal penalties for those who disrupt transportation through text/phone threats or obstruction at sites.
Supply and demand management will also be addressed. Priority will be given to implementing a new permit system for direct management companies, and the scope of vehicle type replacement will be relaxed to ensure supply matches demand. To minimize damages such as delivery delays caused by courier strikes, the legal basis for alternative delivery will be clarified. This is expected to be realized through amendments to the Living Logistics Act by the end of the year.
Regarding the eradication of illegal activities by construction labor unions, penalties such as registration and license cancellations will be strengthened, and intensive inspections including joint investigations by ministries will be conducted. Fundamental measures such as establishing a private bidding system will also be prepared. Special investigators will be introduced within the Fair Construction Support Center of local offices, granting them authority not only to receive reports but also to enforce crackdowns and investigations. To encourage damage reporting, legal support including compensation lawsuits through associations will be actively provided when specialized construction companies suffer damages.
To establish a fair land supply order, administrative sanctions and land lot recovery will be pursued against illegal companies, and to address manpower shortages, foreign employment permit requirements will be relaxed in the second half of the year. The construction sector dispute committee will be operated in an integrated manner.
Amid the construction and real estate market downturn, the role of mutual aid associations will be strengthened to build a construction finance safety net. To promptly reflect inflation in construction unit prices, the revision cycle of the standard market price will be shortened from the previous two years to one year, and the price indices applied to material costs will also be changed. These institutional improvements are scheduled for June.
International flight routes with restricted operations will be gradually restored, and support for irregular flights and allocation criteria for transport rights will be improved to enable diversification of new routes for low-cost carriers (LCCs).
The digital transformation of the land and transportation industry will also be promoted. This includes integrating and linking transportation data, connecting and analyzing urban data to provide urban management and services. The data hub developed and demonstrated by last year will be distributed to 17 cities and provinces nationwide this year.
The target for overseas construction orders this year is set at over $35 billion. The Yoon Seok-yeol administration aims to achieve $50 billion annually and realize the status of one of the top four overseas construction powers. The core is 'One Team Korea.' In the first half of the year, key projects for focused pursuit will be selected through the public-private joint overseas construction order support group, and phased order plans will be established and advanced from July.
In this regard, the capital limit of the Korea Infrastructure and Urban Development Corporation (KIND) will be raised to 2 trillion won, and dispersed ordering information from the Overseas Construction Association, Korea Land and Housing Corporation (LH), and others will be unified into an integrated information system. A Ministry of Land, Infrastructure and Transport official said, "We will not only enter high value-added sectors but also provide one-stop services such as financial and legal consulting and difficulty counseling for companies expanding overseas."
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