Group proposes SOC investment covering climate response, balanced development and AI

Han Seung-gu, chairman of the Korea Construction Association. [Korea Construction Association]
Han Seung-gu, chairman of the Korea Construction Association. [Korea Construction Association]

The Korea Construction Association said Thursday it had submitted recommendations to the Ministry of Land, Infrastructure and Transport and the Ministry of Planning and Budget calling for next year's social overhead capital (SOC) budget to exceed 30 trillion won (about $19.7 billion) to help revive the economy.

The association delivered the proposal to the government on Wednesday. It said SOC investment — given its broad economic ripple effects — must be deployed in a timely manner, and that 2027, when tax revenues are expected to rise, would be the optimal window to lift the country's long-term growth potential.

The group also outlined three priority areas: public safety, balanced regional development and future-oriented growth.

On public safety, the association said the government should proactively address climate change and aging infrastructure. With natural-disaster recovery costs rising sharply and the number of facilities more than 30 years old increasing, it urged the government to concentrate budget resources on upgrading vulnerable bridges, tunnels and other structures.

To counter regional depopulation and ease the widening gap between the capital and the provinces, the association called for aggressive infrastructure investment. It said the government should accelerate construction of inter-regional transport and logistics networks and expand lifestyle SOC — including healthcare and cultural facilities — in underserved areas, while activating mega-city clusters across different regions to stem the outflow of capital from Greater Seoul.

On future-oriented SOC, the association said the government should move quickly to supply advanced data centers, power grids and other infrastructure where shortages exist, and boost economic efficiency through digital transformation powered by AI.

Association Chairman Han Seung-gu said an active SOC budget was essential to provide "a sure catalyst for an economic rebound" so that the Korean economy could sustain solid growth momentum. "In line with expanded infrastructure investment, the construction industry will also mobilize all its capabilities to support economic recovery and build a foundation for the future," he said.

Meanwhile, the association also addressed the recently revised Trade Union Act, warning that the revision was deepening labor-management conflict in the construction sector. It said safety management measures taken by prime contractors should not be used as grounds for recognizing them as employers under labor law.


lucky@heraldcorp.com