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South Korea will spend over 26.4 trillion won to develop new towns in Incheon and build other infrastructure in the first half of the year to curb soaring housing prices.
The said infrastructure projects include the construction of a railroad linking Pohang and Samcheok in Gangwon Province and a highway connecting Hamyang County in South Gyeongsang Province and the Ulsan Metropolitan City will be included in the SOC project.
President Moon Jae-in identified housing market stability as a “crucial policy task.”
The expenditure is part of the government-led 110 trillion won investment project that will center on housing stabilization, the Korean New Deal, and fostering new industries to be carried out throughout the year by public agencies, state-run firms, and private companies.
According to Finance Minister Hong Nam-ki, the stimulus package will include 65 trillion won to build affordable housing and nurture renewable energy sectors, 28 trillion won for infrastructure in emerging business sectors, and 17.3 trillion won for funding private sector-led projects.
Of the amount set aside for public investment, 34 trillion won will be allocated mostly towards social overhead capital projects and energy sectors in the first six month
For the New Deal program, the government will earmark 2.7 trillion won in renewable energy and green remodeling projects.
Under the digital New Deal program, a total of 7.6 trillion won will be poured into developing technologies based on data, networks and artificial intelligence, such as self-driving cars, and smart factories.
The government plans to inject 58.2 trillion won into the New Deal program by 2025 and create around 900,000 jobs.
