Construction Association Welcomes Supplementary Budget... Calls for Over 30 Trillion Won in SOC Budget Next Year

The Korea Construction Association announced on the 19th that it welcomes the supplementary budget proposal released by the government.

In particular, the association expects that the allocation of 2.7 trillion won in the supplementary budget to revitalize the construction industry will be helpful for the sector. The industry has consistently emphasized that its business environment has become increasingly difficult due to a sharp rise in construction costs, profitability deterioration caused by interest rate hikes, and insolvency at project financing (PF) sites.

According to the association, the construction investment growth rate has declined by more than 5% for consecutive quarters since the third quarter of last year. In the first quarter of this year, it fell by more than 12%. The GDP growth rate has also remained below 0.1% for four consecutive quarters, which is worse than during the foreign exchange crisis of the 1990s.

Seoul Gangnam-gu Yeongdong-daero Underground Complex Development Construction Site. 2025.04.23 Photo by Dongju Yoon

The construction industry, led by the Korea Construction Association, has recommended that the government allocate more than 3 trillion won for social overhead capital (SOC) in this year's supplementary budget and over 30 trillion won next year to support economic rebound and boost domestic demand. This year's SOC budget stands at around 25 trillion won, about 1 trillion won less than last year.

Han Seunggu, chairman of the Korea Construction Association, stated, "In order for our economy to overcome the low-growth crisis, secure new growth engines, recover livelihoods, and create jobs, the SOC budget for 2026 must also be expanded to more than 30 trillion won."