en.Wedoany.com Reported - The Construction Association of Korea (CAK) suggested to the South Korean government on the 10th that next year's budget for social infrastructure (SOC) be set at over 30 trillion won to boost economic recovery.

The association has submitted this proposal to the Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance. The CAK believes that among government fiscal expenditures, SOC investment is the most effective in raising the economic growth rate, and the construction industry has a significant economic ripple effect across various sectors. Therefore, timely execution of SOC investment is necessary to preserve the momentum for economic recovery.

The association pointed out that 2027, when tax revenues are expected to increase, will be the optimal time to enhance the nation's growth potential. It proposed three major tasks—national safety, balanced development, and future leap—as reasons for expanding the SOC budget. In terms of national safety, due to the increased burden of natural disaster recovery costs caused by the climate crisis and the growing number of aging facilities over 30 years old since completion, budgets for performance improvements of bridges and tunnels should be prioritized. Additionally, the association suggested overcoming the crisis of regional extinction by building a wide-area transportation and logistics network and expanding living infrastructure in underdeveloped areas, as well as boosting the mid- to long-term potential growth rate by providing advanced data centers and power grids.

Han Seung-gu, Chairman of the Construction Association of Korea, stated that to sustain the growth trend of the South Korean economy, active SOC budgeting is essential to provide a reliable catalyst for economic rebound. Alongside the expansion of infrastructure investment, the construction industry will also support the restoration of economic vitality and the foundation for future development.

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