The Ministry of Land, Infrastructure and Transport announced that the supplementary budget for the 2nd additional budget in 2025 was finalized after a vote in the National Assembly on the 4th.

This supplementary budget includes a new expenditure budget of 1.8754 trillion won under the jurisdiction of the Ministry of Land, Infrastructure and Transport to revitalize the construction industry, which is struggling with reduced new construction investment and a lack of liquidity, and to lower housing costs for low-income residents.

However, 1.2265 trillion won in budget that is expected to be difficult to execute this year due to unforeseen changes in business conditions has been reduced and utilized as supplementary budget resources. Considering the reduced budget adjustments, this year's budget for the Ministry of Land, Infrastructure and Transport has increased by 648.9 billion won to 59.9601 trillion won, compared to 59.3112 trillion won based on the first supplementary budget.

On the 4th, Speaker Wo Won-sik declares the opening of the 5th plenary session of the 426th National Assembly (extraordinary session) at the National Assembly in Yeouido, Seoul. 2025.7.4 /Courtesy of News1 © News1 Reporter Ahn Eun-na

Looking at the main contents of the supplementary budget under the Ministry of Land, Infrastructure and Transport, 847.5 billion won has been added to expand SOC investment to invigorate the construction market. A total of 1.21 trillion won will be invested in construction costs and compensation for two expressways, including the Hamyang-Ulsan expressway (200 billion won) and two national roads, including Taen-Gonam-Changgi (860 billion won), as well as eight industrial complex access roads (150 billion won) to accelerate the expansion of regional road infrastructure.

A total of 4.894 trillion won will be invested in the construction of nine railway lines, including two high-speed railways, such as Pyeongtaek-Osong (200 billion won), and two conventional railways, such as Boseong-Imseongri (400 billion won), one GTX-C metropolitan railway (300 billion won), and four urban railways, including Daejeon Line 2 (2.194 trillion won).

Additionally, 169.2 billion won will be invested in the maintenance and repair of aging railway facilities (signals, tracks, electricity, etc.) to ensure that the public can use the railways safely.

The supplementary budget will also be invested in the aviation institutional sector. 5 billion won will be allocated to expand the runway at Muan International Airport and establish a new control tower at Jeju International Airport to enhance airport safety. 3 billion won will be allocated to support the establishment of a comprehensive drone infrastructure for the first time in the Honam region.

In the dwellings institutional sector, 59.9 billion won has been allocated to support small-scale housing maintenance projects to improve the living environment in aging low-rise residential areas and to expand housing supply.

To support business sites experiencing a liquidity crisis, 650 billion won has been allocated. Tailored liquidity support at various stages of business, including land purchase contracts, bridge loans, land acquisition, permits, primary financial projects, construction commencement, sales, and completion will normalize construction businesses that are experiencing difficulties in financing.

An additional 377.9 billion won has been allocated to support the recovery of livelihoods through strengthening housing stability for low-income residents. An additional 57.2 billion won has been allocated to support up to 200,000 won per month in rent for 157,000 young people under 60% of the median income over two years. To provide an additional 3,000 rental units at lower than the market price to young people and newlyweds (from 45,000 to 48,000 units), 320.8 billion won has been allocated.

Funds for anticipated expenditures that are expected to be difficult to execute this year were secured through budget cuts from the existing budget. 1.2265 trillion won has been reduced.

The budget for road, railway, and airport construction projects that are expected to face difficulties in execution this year due to project plan reviews and delays in selecting contractors has been adjusted to utilize supplementary budget resources, amounting to 950 billion won. Plans are in place to resolve obstacles to quickly normalize the projects that had their budgets adjusted this time.

Funds of 276.5 billion won for public housing construction, which are expected to be difficult to execute this year due to changes in project plans, have also been adjusted. However, there are plans to expedite ongoing housing construction and to support housing stability for the public without any disruptions, including additional supplies of rental units.

The Ministry of Land, Infrastructure and Transport stated that, "As this supplementary budget is designed to revive the frozen economy and recover people's livelihoods even in difficult financial conditions, we plan to maximize the effects of the supplementary projects through swift execution."

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