The South Korean government recently announced that it is organizing a project that will convert unused state-owned land into public housing spaces and business spaces. This new policy was confirmed by the nation's chief fiscal policy maker during a meeting on Wednesday.
Many have noted that South Korea's newest development project is rather ambitious and will cost a lot of money. The government is quite aware of that and in order to fund this massive undertaking, a total of 65 percent of the country's annual social overhead capital within the first half of the year will be pumped in order to finance the project. This undertaking is seen by many analysts as South Korea's strategy to resuscitate its domestic economy which has experienced quite a lot of hurdles over the past few quarters.
During a meeting on economic revitalization held at the Seoul Government Complex, South Korea's Deputy Prime Minister and Finance Minister Hong Nam-ki said, "(The government) has selected 11 units of unused state-owned land with an area that totals 6.9 million square meters or 2.4 times that of Yeouido."
Mr. Hong added that the chosen area will be utilized to build and supply 22,000 units of public houses. As part of development, this area will also host a number of facilities that will help nurture and improve innovative venture firms as well as startups.
Mr. Hond said that the South Korean government will be pumping around $14.9 billion in developing unused state-owned lands around the country. This massive project will run up until 2028 and is expected to create at least 205,000 jobs. Additionally, these development projects will create at least $30 billion in terms of production value.
Despite a handful of criticism over the new development project, South Korea's top officials are positive that this project will indeed help the country cope up. Additionally, these projects are seen as long-term investments rather than an emergency pump to instantly resuscitate the economy.
South Korea admits that its economy is experiencing stagnation. Some of the country's top ministers have attributed this slump to the ongoing trade war between China and the United States which has affected almost every country that relies on these two superpowers for trade. In order to remedy this economic slowdown, the South Korean government is keen on providing financial assistance for overseas construction and plant orders.
