Construction Association "More than 30 trillion won in SOC budget needed for 1.6% growth rate in 2026"

[Financial News] The Korea Construction Association expressed its welcome for the government's allocation of 27.5 trillion won for the 2026 social overhead capital (SOC) budget. However, it emphasized that at least 30 trillion won or more in SOC expansion is necessary to recover the stagnant construction market and achieve an economic growth rate of 1.6%.
The association positively evaluated the 2026 budget proposal and the 2025-2029 National Fiscal Management Plan announced on the 29th, stating that "the increase of 2 trillion won in the SOC budget compared to the previous year will help the industry struggling with soaring construction costs and PF insolvency." It also stated that the resource allocation plan to increase the SOC budget by an average of 4.3% annually over the next five years could contribute to alleviating uncertainties in the construction industry.
However, it pointed out that the SOC growth rate (7.9%) is lower than the overall total expenditure growth rate (8.1%), limiting the economic recovery effect. According to the Bank of Korea's forecast, construction investment is expected to decrease by 8.3% this year, so the SOC budget needs to be further expanded during the National Assembly's budget review process.
In particular, it mentioned that some sectors, such as roads, have been reduced compared to the previous year, and emphasized the need for budget increases to ensure regional balanced development and safety. Han Seung-gu, President of the Korea Construction Association, said, "For the construction industry, a pillar of our domestic economy, to rise again and contribute to economic growth and job creation, it is essential to allocate more than 30 trillion won in SOC budget," and added, "The construction industry will also make its best efforts to create a safe workplace without disasters through diligent construction."

en1302@fnnews.com Jang In-seo Reporter