Ruling Party and Government Aim to Secure Legislation and Budget for Mega Projects Within the Year

[Financial News] The Lee Jae Myung administration and the Democratic Party of Korea (DPK) said on the 13th that they will secure legislation and budget support for three major mega projects, including an 800 trillion won semiconductor investment in Honam, to extend the semiconductor boom. They plan to pass the Special Act on Mega Regulatory Free Zones, which the government is preparing, by the end of the year and reflect mega project spending in next year’s budget by trimming mandatory expenditures as well.
Han Byung-do, acting leader of the DPK and floor leader, said at the economic growth strategy meeting held at the National Assembly Members' Office Building that this is "the first year of a major economic leap forward to realize the early implementation of the three mega projects, create future growth engines, achieve region-led growth, and advance an irreplaceable Korea through structural reform to address polarization." He added, "We will process key bills such as the Special Act on Mega Regulatory Free Zones and the Strategic Export Finance Support Act by the end of the year, and since the party has set up a special committee to oversee the mega projects, we will firmly support both legislation and the budget."
From the government side, Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy Koo Yun-cheol stressed that "we will push ahead with the three mega projects — semiconductors, AI data centers, and Physical AI — at speed to foster a globally unmatched growth engine and build the Five Mega-Regions and Three Special Self-Governing Provinces Policy growth engine, thereby strengthening region-led growth."
Minister of Planning and Budget Park Hong-keun also spoke about supporting the mega projects through the creation of the Future Response Fund and investment in growth engines and talent development. He said, "To do this, we will review the performance of all projects from scratch and carry out a high-intensity spending restructuring." He added, "We will also begin a full-scale overhaul of mandatory spending that has long been treated as untouchable, including reforming the education grant system to improve investment stability." The outline of the Future Response Fund and next year’s budget is expected to emerge later in the day at the National Fiscal Strategy Meeting chaired by President Lee Jae Myung.
On power supply for the mega projects, Minister of Climate, Energy and Environment Kim Seong-hwan said it would be secured through renewable energy such as wind and solar power rather than fossil-fuel generation. He said, "We will support the green transformation that will proceed alongside the AI transformation."
uknow@fnnews.com Kim Yun-ho, Kim Hyeong-gu Reporter