A view of Pohang City Hall. [Pohang city government]
A view of Pohang City Hall. [Pohang city government]

Pohang in North Gyeongsang Province saved 4.17 billion won ($3.15 million) through contract cost reviews in the first half of 2026, cutting that amount from 532 projects worth a combined 113.14 billion won, the city announced Monday.

The city focused on eliminating unnecessary costs by closely examining site conditions, design specifications, and unit prices for each project, while cross-referencing relevant standards and market prices. The reviews were designed to ensure appropriate cost estimates while accounting for project quality and construction conditions.

As a result, the city achieved a savings rate of about 3.7 percent of the total amount submitted for review in the first half.

Pohang is also running a policy sunset program that systematically evaluates ongoing initiatives for necessity, overlap and performance, retiring inefficient projects as part of a broader push to strengthen fiscal soundness.

Through the contract cost review process, the city intends to block excessive budget allocations and wasteful spending from the earliest stages of projects and to continuously improve the efficiency of fiscal management.

"We will continue to enhance the expertise and effectiveness of contract cost reviews, carefully examining the appropriateness of cost estimates from the initial stages of each project to prevent budget waste," Pohang Deputy Mayor Bae Yong-su said. "Through prompt and rational reviews, we will keep raising the reliability of public administration and the soundness of our finances."


kbj7653@heraldcorp.com