MOLIT Draws Up Record-High Next-Year Budget of Up to 69 Trillion Won, Strengthens Public Support

[Financial News] The Ministry of Land, Infrastructure and Transport has secured a record-high budget allocation in the government’s next-year budget proposal. The ministry plans to promote shared growth by focusing on public support measures such as expanding rent assistance for young people.
MOLIT said on the 1st that the next-year government budget proposal, worth up to 69 trillion won, was approved at the State Council of South Korea. The approved proposal is scheduled to be submitted to the National Assembly on the 3rd.
MOLIT’s budget for next year totals 69 trillion won, up 6.2 trillion won, or 9.9%, from this year’s 62.8 trillion won. The proposal includes 8.8 trillion won for housing supply and 900 billion won for future mobility.
To maximize fiscal efficiency, MOLIT reviewed all budget projects closely. Through spending restructuring on items such as traditionally executed budget lines and projects with sluggish implementation, the ministry reinvested the secured funds entirely into the government’s key policy tasks. The items subject to spending restructuring totaled 9.6 trillion won, including institutional improvements such as reducing advance payment ratios for railcar purchases, integrating programs such as purchase-rental housing, and taking into account execution conditions for delayed projects such as Jeju Second Airport.
MOLIT said the next-year budget proposal is centered on four major areas: livelihood vitality, future growth, balanced growth, and public safety.
The government plans to steadily deliver 1.1 million+ public housing units by 2030 and improve housing support for young people. The goal is to drive shared growth by improving living conditions. Specifically, it plans to supply a total of 218,000 public housing units, including 172,000 public rental homes, to stabilize housing. Of that amount, 620 billion won will be spent on newly supplying universal rental housing near transit stations and with medium-sized floor plans.
In particular, 169.6 billion won will be allocated to the Housing Facility PF Loan Interest Support Program for residential projects financed through Project Financing (PF) loans. As the Lee Jae-myung administration is placing emphasis on actual construction rather than permits, the plan appears aimed at accelerating supply on site.
The budget for housing policies targeting young people has also been increased. More than 50% of the universal rental housing supply will be reserved for young people, while funding for rent support for young tenants will rise sharply from 130 billion won to 231.9 billion won, helping build a housing ladder for the younger generation.
Support for victims of rental scams will also be strengthened. The government will continue a program that covers any shortfall when compensation payments, designed to guarantee minimum recovery for victims, fall below one-third of the tenant’s deposit. To this end, MOLIT has set aside 84 billion won.
The Lee Jae-myung administration is also focusing on regional development. It will allocate 29.4 billion won to a new project that designates aging downtown areas in regional hub cities as concentrated revitalization zones, supports space through vacant-unit rentals and purchases, and encourages the influx of young people, artists, and entrepreneurs by expanding infrastructure. The budget also includes funding to ensure the smooth progress of major SOC projects, including the Sejong–Anjeong Expressway and GTX-A, GTX-B, and GTX-C.
In addition, MOLIT said it has allocated budgets to expand future mobility projects and overseas investment development projects.
A ministry official explained, "The next-year budget proposal sharply strengthens investment in projects that people can directly feel, while reducing wasteful spending through aggressive spending restructuring and maximizing investment efficiency."
[email protected] Jung Kyung-soo Reporter