Korean gov’t to increase budget for SOC projects, parental benefits

Great Train eXpress (GTX) A. [Courtesy of Ministry of Land, Infrastructure and Transport]

The South Korean government has decided to speed up social overhead capital (SOC) projects by budgeting the early opening of the lines for the Korea Train eXpress (KTX) from Incheon and the Great Train eXpress (GTX) A. The move is seen as a way to revive the sluggish economy by using the SOC budget as a means to prime the pump.

The announcement was made by the government and the People Power Party (PPP) on Wednesday. The KTX line from Incheon spans over to Songdo Station in Incheon, Choji Station in Ansan, and Ucheon Station in Hwaseong and is expected to open in June 2025 if the budget for early completion is approved.

GTX A is a route that connects Unjeong Station in Paju, Gyeonggi Province, Samseong Station in Seoul, and Dongtan Station in Hwaseong and is expected to open between Suseo and Dongtan in April next year and between Unjeong and Seoul Stations in the second half of the year.

The government and the ruling party will also reflect a number of regional projects in next year‘s budget, including Gadeokdo New Airport in the Yeongnam region, Seosan Airport in South Chungcheong Province, and the tram line for Daejeon Metro Line 2. It will also allocate budget for a medical specialty center in Gangwon Province and a public sewage treatment facility in Jeju.

“Seoul is preparing complementary measures to improve old facilities such as safety-related electric vehicles and escalators and will increase budget during the National Assembly review process,” said Song Eon-seok, a member of the PPP and National Assembly’s Special Committee on Budget and Accounts.

“Gwangju has decided to allocate budget for the creation of an Asian water history theme experience center and South Jeolla Province a project to create an artificial intelligence (AI) high-tech agricultural convergence zone.”

The budget supporting ordinary citizens will also be significantly increased. Parental benefits for parents with children aged 0 to 1 will be raised to 700,000-1 million won ($524.34-$739.06) next year from 350,000-500,000 won, and the limit for low-interest loans for college students will be increased to 4 million won from 3.5 million won.

“We have organized the budget by focusing on key areas such as strengthening the welfare of the vulnerable, investing in the future, and creating quality jobs,” said Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance.