Chairman Kim Sang-soo of the Construction Association of Korea (CAK). (Photos: CAK)

The Construction Association of Korea (CAK) proposed to the Ministry of Land, Infrastructure and Transport (MOLIT) and the Ministry of Economy and Finance (MOEF) that more than 30 trillion won in the 2022 social overhead capital budget be allotted to achieve inclusive economic growth, secure public safety and make a leap forward as an advanced country in the post-COVID-19 pandemic era.

CAK said on May 16 it made the proposal based on outcomes of research conducted by Construction & Economy Research Institute of Korea.

It turned out that the nation needs to invest about 53 trillion won into the SOC sector, equivalent to 2.5 percent of GDP, in order to achieve a 2.5 percent annual economic growth rate in 2022, as predicted by the Bank of Korea in February. To this end, more than 30 trillion won should be set aside for the SOC budget.

The association stressed that investments in the construction sector will inject vigor into a variety of related industries, such as raw materials, equipment businesses and construction workers, thus creating jobs and reinvigorating the domestic economy.

CAK claimed that Korea needs to continuously expand investments into the SOC sector, as the U.S. Biden administration came up with a $2.25 trillion infrastructure investment package to restore the economy and boost national competitiveness.

CAK Chairman Kim Sang-soo said the upper 20 percent of income groups saw their income shrink 1.5 percent during the period between April and December of last year, compared to the same period of the previous year, but lower 20 percent saw their income drop a whopping 17.1 percent.

This revealed the fact that the economic shocks of the COVID-19 pandemic hit those in the low-income bracket the most and income disparity and bipolarization are feared to be exacerbated.

Investments into the SOC sector is the most effective means of securing jobs and recovering incomes, thus contributing to stabilizing society like a rise in household incomes, so proper levels of SOC budget amounts need to be set aside, he added.

Dignitaries, including Vice Minister Yoon Sung-won of the Ministry of Land, Infrastructure and Transport (MOLIT) and Chairperson Jin Sun-mi of the National Assembly Land, Infrastructure and Transport Committee, attedn a ceremony to mark the 19th New Construction Technology Day at EL Tower in Seoul on June 3.

19th New Construction Technology Day Observed

The Ministry of Land, Infrastructure and Transport (MOLIT) hosted a ceremony to mark the 19th New Construction Technology Day at EL Tower in Seoul on June 3.

Roughly 50 people from government, industry and academic circles attended the event designed to inject a sense of pride into people with the development of new construction technologies and encouraging the development of new technologies.

Twenty-four technology developers and people from local governments and institutions under the umbrella of the central government were honored with government prizes and MOLIT minister’s award in recognition of their contribution to developing new construction technologies.

The coveted Order of Industrial Merit Service, Bronze Tower went to Vice President Kim Jong-soo of Lotte E&C.

More than 55,000 new construction technologies have been developed so far and they have been applied to a variety of construction worksites, thus contributing to reducing construction costs and period and raising quality levels.

MOLIT Vice Minister Yoon Sung-won said, “A majority of new construction technologies, developed by SMEs, are widely employed in the public and private sectors, and it has contributed to developing of technologies of the construction industry and raising competitiveness.”

The government will focus on smart construction to advance the future construction industry and expand R&D investments and drive institutional reform so that new construction technologies can be developed and utilized at construction sites, he added.