Ministry of Land, Infrastructure and Transport: "Record High 12 Trillion Won Social Infrastructure Budget Execution in First Half of the Year"

Announcement of the "2025 Ministry of Land, Infrastructure and Transport Major Work Plan"
70% of This Year's SOC Budget to Be Spent in the First Half
Measures to Promote Vacant House Renovation
Revitalizing Regional Tourism Linked to Railways

Sinpaldang Bridge Construction Site (Photo by Namyangju City)

The Ministry of Land, Infrastructure and Transport announced that it will execute the largest-ever social overhead capital (SOC) budget in the first half of the year to support regional economic recovery. Including 4.1 trillion won for roads and 4.4 trillion won for railways, it plans to spend about 12 trillion won, approximately 70% of the SOC budget, during the first half.

On the 13th, the Ministry revealed this through the announcement of the "2025 Ministry of Land, Infrastructure and Transport Major Work Plan," stating, "In particular, we will increase early fiscal spending from the beginning of the year by executing 2.5 trillion won for roads and 2.1 trillion won for railways in the first quarter to enhance the tangible effects." Public institutions such as Korea Land and Housing Corporation (LH) with 12.3 trillion won, Korea Rail Network Authority with 3.5 trillion won, and Korea Expressway Corporation with 2.7 trillion won will also execute 57% of their budgets in the first half, the highest level ever.

They will also carry out projects for renovating aging spaces and regional development. The first phase of the railway undergrounding project will announce the selection results within the first quarter of this year as soon as consultations with local governments that applied for the project are completed. Additional project proposals will be accepted until May, and a nationwide integrated development master plan for railway undergrounding will be created by the end of the year.

The "New:Village" project for renovating old low-rise residential areas will commence in 32 pilot projects selected last year, and additional projects will be promoted according to the budget for the second year.

To address the social issue of vacant houses, a "Vacant House Bank," "Vacant House Management Business," and "Vacant House Specialized New:Village" project will be introduced as part of the "Vacant House Renovation Activation Plan," which will be prepared in the first half of this year.

Separate projects within vacant house dense areas or renovation projects at the alley level including vacant houses will be promoted. To improve local living conditions, the "Regional Vitality Town," which integrates support for "housing + living infrastructure + living services," will expand multi-department linked projects from the existing 18 to 22, selecting 10 new projects by May.

Additionally, to revitalize regional tourism using railways, the number of participating regions in the "Love for Region Railway Travel," which offers integrated discounts on trains, accommodations, and rental cars, will be increased. The "Gyoeoseon Free Travel Pass," allowing travel along the Gyoeoseon line opened in January this year, will also be introduced.

Within this month, the support target for the Urban Regeneration Seed Loan, previously limited to commercial buildings, will be expanded to include mixed-use residential buildings (with residential floor area within 50%). The Urban Regeneration Seed Loan is a system that supports low-interest loans when creating commercial and startup facilities in declining downtown areas.