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Gov't to invest in SOC, energy to spur economy
Finance Minister Hong Nam-ki speaks at the beginning of a meeting with economy-related ministers at the Government Complex in Gwanghwamun Seoul. Yonhap
By Lee Kyung-min
By Lee Kyung-min
State-run organizations will invest 60 trillion won ($51.2 billion) in building power plants and developing satellite cities to strengthen social overhead capital (SOC) to spur the economy, the government said Wednesday.
This is the latest of the government measures to revitalize the economy with a state budget of 512 trillion won in 2020.
Finance Minister Hong Nam-ki said the measures will be bolstered further by shortening the preliminary feasibility study period to seven months from the current 10 months.
The study is a prerequisite to initiating any state-commissioned projects over 300 billion won to measure economic viability.
“The government will spend 60 trillion won, up 6.5 trillion won from 2019, to foster job creation and identify sustainable growth engines,” he said at the beginning of a meeting with economy-related ministers at the Government Complex in Gwanghwamun Seoul.
Hong reiterated that the government will raise the budget execution rate to 62 percent in the first half of 2020, adding 37 percent of the budget related to job creation will be executed in the January-March period.
Regular reviews will be held to ensure timely provision of various social benefits ― income-based allowances for living expenses, childcare and medical costs.
The government plans to ensure effective organization and execution of state-run job training scheduled in the latter half of the year.
Briefly touching on the escalating Iran tension, Hong said the government has contingency plans in store to limit the fallout from the growing geopolitical uncertainty.
“The government will set up a task force to monitor the overseas construction and logistics, the overall financial market, foreign exchange fluctuations and oil prices. Particular attention will be paid to the negative developments of the financial market especially involving oil prices and export as they can trigger far-reaching repercussions in the real economy,” he added.
Yet Hong maintained caution against what he considers a rash judgment that the heightened volatility in the local financial market came as a direct result of the unfolding Mideast uncertainties.
“It is too early to conclude that the ongoing tension in the Middle East bears a direct causal relationship with the fluctuation in Korea's foreign exchange market and stock market.”
The remarks came as the Korean currency slid to 1,170 won against the U.S. dollar, Wednesday morning, down 10 won from the previous session, with the KOSPI sinking below 2,150, down 1 percent from the previous session.
At another event, Hong added that the government will seek to require state-run organizations to fill 10 percent of their new hires with those with only high school education by 2023, as a measure to give greater opportunity to those with underprivileged educational backgrounds.
“This year, 25,653 jobs will be available at state-run entities, up over 2,000 from the year before. The government will help create more jobs and strengthen the public service at the same time,” he said at a job fair for state-run organizations at the aT Center in Yangjae, southern Seoul.