Government announces measures to bolster regional construction

A host of measures has been unveiled to bolster regional construction by expanding related development projects, as struggles in the sector have become a cause of concern.

Our Park Kun-woo has more.

At an economic policy meeting held in Seoul on Wednesday, the government unveiled plans to boost the local economy, especially in the struggling construction field.

"We're facing downward pressure due to a delayed recovery in domestic demand, and rising external uncertainties. The construction sector, hit by fewer orders, is seeing sluggish investment and employment, delaying any regional recovery. The government will boost support for the sector in its first quarter spending plan."

This comes after the Bank of Korea predicted another decrease in construction investment this year, following a decline last year.

Among the plans the government put forward are underground railway projects, worth around 3 billion U.S. dollars, in the cities of Busan, Daejeon and Ansan.

These cities were chosen as their local governments have already completed discussions, regarding the project areas and cost-sharing with the central government.

The projects involve either putting elevated railways running through the city center underground, or covering them with deck structures while developing the surrounding land for residential and commercial facilities.

The government also plans for the state-owned Korea Land and Housing Corporation (LH) to buy around three thousand unsold apartments in areas outside the capital region.

This follows an increase in the number of unsold houses in regional areas at the end of last year that nearly doubled compared to 2023.

On Wednesday, the government hinted at the possibility of even increasing the number of purchases, depending on market conditions.

Additionally, new strategic projects exempt from greenbelt zone restrictions will be announced next week to enable more flexible land development.

Park Kun-woo, Arirang News.