Issue Focus

​The public works advance payment system in Korea was introduced to ease the initial financial burden on contracting partners and induce rapid financial execution.

​- The limit of advance payment has been maintained at the same level in the National Treasury Management Act for a while since it was specified as 70% of the contract amount in the "舊 (Accounting Budget) Advance Payment Guidelines" enacted in 1997.

​- Since then, the limit has been raised to 80% through the revision of the Enforcement Decree and temporary contract guidelines to ease corporate financial difficulties caused by the impact of COVID-19 in April 2020. Since the announcement of the special case to expand to 100% in response to the prolonged economic recession in February 24, the application period of the relevant guidelines has been extended every half year.

​However, the expansion of the upfront payment limit goes beyond the original purpose of the "timely support of necessary funds" system, resulting in various side effects, undermining the soundness of construction work and the stability of the overall construction market.

​- If the advance limit is extended to 100%, general administrative expenses that are not directly related to the construction will be paid in advance, directly contradicting the purpose of the system and reducing policy effectiveness.

​- In particular, in a situation where business conditions across the industry have deteriorated, excessive execution of advance payments beyond necessary acts as an incentive for construction companies to divert the amount for non-construction purposes such as debt repayment.

​- In addition, the person placing an order maintains the practice of forcing the execution of advance payments regardless of the operator's ability to manage funds due to economic stimulus and securing early financial execution performance compared to institutional evaluation, increasing the burden on the principal and subcontractors.

​In addition, excessive advance payments negatively affect each entity, such as construction business operators, guarantee institutions, and orderers who are stakeholders of construction contracts and accompanying guarantees and insurance contracts.

​- As the number of cases of corporate bankruptcy and financial transaction suspension due to the economic downturn has increased, short-term cash outflows have surged during the process of returning advance payments and settling basic payments during construction, forming a vicious cycle of worsening corporate liquidity.

​- (Financial and guarantee institutions) The number of guaranteed accidents and subrogation cases increases in a situation where construction businesses' dependence on guarantees and insurance increases, and as a result, the overall loss ratio of the guarantee institution rises, reaching its limit with its own risk management efforts alone.

​- As the amount of advance payment increases, the difficulty of settlement and collection of advance payment due to the destruction of the construction contract also increases, and the loss increases due to additional costs and time input for the resumption of the contracted construction.

​Therefore, this paper realizes the original purpose of the system based on the execution and management of public construction advance payments and proposes reasonable improvement measures to secure a balance between financial efficiency and industrial stability.

​- First, by adjusting the current payment limit (100%), which has a limited effect on revitalizing the domestic economy, to 70%, the previous level, it is necessary to curb the advance execution of funds and secure fiscal soundness.

​- Second, it was proposed to introduce an 'intermediate advance system' to increase the flow of funds and execution efficiency of the site. After the first advance payment is paid as much as the mandatory ratio at the start of public construction, a certain percentage of the second advance payment is made when the process rate is reached 50%, and a procedure is prepared to verify the use of the existing advance payment when additional payment is made.

​Future policies should not only support short-term liquidity through quantitative expansion of fund execution, but should shift to strengthening the construction industry ecosystem in the mid- to long-term by creating orders and boosting demand from the public and private sectors.​

​On September 7, the government announced the "Housing Supply Expansion Plan" (hereinafter referred to as the September 7 Measures) to respond to concerns about a shortage of housing supply in the market and to prepare a stable housing supply environment.

​- The supply (construction) target reached an annual average of 270,000 units and a total of 1.35 million units over the next five years, which is expected to resolve the supply shortage.

​- In particular, by designing the roles of the public and private sectors in harmony, three types are presented: ① (public-led) expansion of public roles, ② (public-private cooperation) legal and institutional support, and ③ (private-led) deregulation and support.

​- Specific measures include ① expansion and earlyization of housing supply in the metropolitan area, ② expansion of housing supply in the city center, ③ improvement of private housing supply conditions, and ④ establishment of demand management and transaction order

​Expansion and Early Supply of Housing in the Seoul Metropolitan Area" aims to accelerate the experience of supply through direct implementation of LH in housing construction projects in the Seoul metropolitan area, land efficiency, conversion of non-housing land → housing land, and visualization of sales."

​- Through this, it aims to start construction of 37.2 million units, 12.1 million more than the expected construction volume of 251 million units for public housing in the Seoul metropolitan area between 2026 and 2030.

​- However, the actual net increase is limited and there is a possibility that the incentive to participate in the private sector may decrease due to construction delays and financing risks.

​- Therefore, it is necessary to strengthen private incentives such as risk hedging and incentives in the process of improving procurement conditions and construction, and to secure additional construction volume, it is necessary to improve public business conditions (reorganize LH contract structure and convert non-construction construction), and to gradually increase new public housing sites and present roadmaps.

​Expansion of Housing Supply in the City" is a plan to revitalize housing construction by utilizing old and idle sites, revitalizing maintenance projects, and reorganizing the system."

​- The amount of construction is expected to be secured over the next five years through this plan, reaching about 403,000 units.

​- As a result of the analysis of ways to expand housing supply in the city center, mid- and long-term effects are expected, while short-term effects are expected to be limited, and market stability effects are also more likely to appear in the mid- to long-term than in the short-term.

​- To compensate for this, it is necessary to improve the public nature of private implementation, improve the city's public housing complex system, establish a master plan for old planning cities, induce integrated maintenance by selection, and improve additional system maintenance, supplement concerns about side effects of maintenance (expanding support for migration funds and drawing public rental housing), ease the obligation to green parks, and improve delays in litigation.

​'Improving private housing supply conditions' improves unreasonable regulations raised and strengthens incentives for private participation.

​- It is expected to promote construction and increase short-term supplies by rationalizing licensing, expanding PF guarantees, incentives for early construction, and expanding short-term supply of non-apartments, but there are concerns about limited profitability improvement, increased financial burden, lack of preference for non-apartments, and supply constraints.

​- As supplementary measures, long-term regulations such as integration of development profits, easing the burden of school land, flexible use areas, revitalizing modular and new construction methods (improving legal systems, licensing, and performance standards), and expanding public-supported private leases (urban and youth-specific).

​"Establishment of Demand Management and Transaction Order" designs a supply-demand balance adjustment mechanism to increase the effectiveness of supply expansion.

​- The government immediately strengthened LTV in regulated areas, restricted rental businesses' LTVs, unified lease loan guarantees, and expanded the authority of land transaction permits, but monitoring is needed to prepare for balloon effects in unregulated areas and instability in the rental market.

​- It is necessary to establish the principle of division of roles and long-term operation between LTV, DSR, and guarantees as a mid- to long-term improvement plan, reorganize the regulatory area system in the direction of minimizing duplication and unifying, and strengthen AI-based abnormal transactions prevention and investigation automation.​

​In 2025, the number of old buildings in Seoul increased by 61.2% compared to the previous year. Considering the government's recent will and policy to quickly support urban renovation projects, demand for ready-mixed concrete is expected to increase significantly.

​- Related construction such as replacement, demolition, and repair of old facilities is actively carried out in the northeastern and southwest areas of Seoul.

​- Among the total buildings, old buildings that are 30 years old account for 61.2%, which means the aging of the city.

​- The aging rate in downtown Seoul is 41.4%, at least 0.4%p higher than other living areas by up to 16.2%.

​In fact, old buildings in Seoul are increasing mainly in residential facilities, and 114 of the urban renovation projects under way are expected to inevitably supply a large amount of ready-mixed concrete due to the high probability of construction.

​- The provisional estimate of ready-mixed concrete during the period when there are many old buildings is 65,439,341.1㎥, which is 89.8% of the time when the shipment of ready-mixed concrete from Seoul and Gyeongin was the highest.

​- The demand for ready-mixed concrete at a time when urban maintenance projects are expected to increase rapidly was 2,016,000㎥, accounting for 91.9% of the total production of ready-mixed concrete factories in Seoul.

​- There is an urgent need to come up with realistic measures to expand production and supply for ready-mixed concrete delivery.

​The successive demolition of ready-mixed concrete plants in Seoul has resulted in a decrease in production and a gap in the supply chain. In addition, restrictions on vehicle traffic and operation in urban areas also act as a factor limiting the supply of ready-mixed concrete.

​- Since only two ready-mixed concrete plants in Seoul will operate, it creates supply chain gaps in the downtown area, the northeast area, and the southwest area along with a decrease in production.

​- Restrictions on vehicle traffic and driving lead to a decrease in productivity, as well as a decrease in daily supply, allowing work only for a certain time.

​The government has implemented several systems and eased regulations for stable ready-mixed concrete deliveries. However, the expected effect is expected to be less than expected as the changed supply chain for ready-mixed concrete deliveries is not taken into account.

​- Some contributions are expected to stabilize the delivery of ready-mixed concrete by implementing the priority delivery system and the installment delivery deadline system at public construction sites. However, problems such as lack of objectivity and equity for the selection of targets, and increased complexity in contracts and management are inherent.

​- Areas that cannot produce all of them through on-site deployment plants should make efforts to secure supplies from outside and manage the operation of on-site production equipment. Therefore, it is expected to introduce only a small part of Seoul's urban renovation project sites.

​Putting together the above, various policies and self-rescue efforts are required as demand for ready-mixed concrete is expected to increase significantly within the next few years.

​- Government-level and private-level ready-mixed concrete have similar problems. Policy efforts should establish standards for coordinating and strengthening supervisory authority for delivery instruction and implementation, introducing a performance-based contract system, improving quality, and clarifying responsibility.

​- Self-rescue efforts are required in consideration of policies for the development and diffusion of various deployment plants, cost reduction, and eco-friendliness.

​- In order to spread the site layout plant, it is also necessary to adjust the layout standards of contractors and supervisors and to allocate costs.

​- Exceptional provisions should also be considered that allow temporary increases in production to address delays in delivering ready-mixed concrete and instability in supply and demand at sites with limited production of field placement plants.

​- A consensus should be formed for "rent-production-operation and maintenance" by mobile deployment plants to settle into businesses suitable for the changed supply chain.​

​The system for calculating the industrial accident rate of construction companies has been changed from the existing converted accident rate to the accident death rate, and it was originally targeted at general construction companies, but it will also include professional construction companies from 2021.

​- The converted accident rate refers to the accident rate calculated by assigning weights to death accidents among occupational accidents, and has been changed to the ratio representing the number of deaths from occupational accidents per 10,000 full-time workers since December 2018.

​The Ministry of Employment and Labor calculates the accident death toll rate for each company every year and reflects it in public works bids to promote autonomous disaster prevention activities of construction companies.

​- The accident death toll rate is used as a basis for intense administrative sanctions that hold construction companies responsible for industrial accidents because it is used to reduce the construction performance of construction capability assessment, creditworthiness for preliminary bidding qualifications, and comprehensive screening and qualification screening criteria.

​If there is work relevance even if there is no negligence of death accidents in compliance with industrial accident prevention obligations, the accident death rate can be calculated regardless of whether the Occupational Safety and Health Act is violated, so the industry's demand for improvement is high.

​- The Ministry of Employment and Labor operates an objection system to the accident death toll rate of construction companies, but if the objection is rejected, it will be included in the calculation of the accident death toll rate of the construction company regardless of the court's final negligence, and even if it is acquitted or acquitted later, it will have to bear the damage of sanctions due to the calculation of the accident death toll rate.

​Most small and medium-sized construction companies with relatively weak administrative capacity compared to large companies are having difficulty responding appropriately, such as preparing and reviewing documents for objections.

​- The objection period is limited to 10 days from the date of notification of the accident death toll, and there are cases in which the objection cannot be filed even though it is excluded from the number of accident deaths due to the demand for many documents depending on the type of objection.

​- Small and medium-sized construction companies that have to carry out various tasks such as safety, quality, accounting, and administration with limited manpower are likely to have difficulty responding to the exclusion and correction application even if they receive an objection

​It proposes two ways to improve system accessibility and support system so that most small and medium-sized construction companies with insufficient administrative capabilities can receive fair evaluation by improving the usability of the accident death rate objection system.

​- It is necessary to extend the period of objection allowed within 10 days according to the enforcement regulations to 14 days or two weeks to ensure a sufficient period for construction companies who wish to raise objections to the accident death toll rate.

​- Cooperation and organizations in the construction sector need to establish a system to support the insufficient administrative and rental capabilities of small and medium-sized construction companies through distribution of manuals related to the accident death rate objection system.

​In addition, if a trial on the negligence of a death accident is pending, it is necessary to consider suspending the calculation of the number of accident deaths in the ongoing trial to calculate the accident death toll rate after the industrial accident negligence is confirmed.

​- This is a proposal for rational calculation, not an exemption from the inclusion of the number of accident deaths, and the possibility of abuse of lawsuits by construction companies due to the revision will be limited as lawsuits for inappropriate purposes can lead to accumulation of the number of accident deaths and consequent disadvantages in the process of operating the human rate-based system.​

( 목적) 구독제도의 사회적 중요성에 비해 실증분석에 기반한 연구는 많지 않다. 본 연구는 실증적 데이터를 기반으로 특별공급 청약제도의 운영 현황을 파악하고, 이를 바탕으로 장기적인 시스템 효율화 방향을 모색하는 것을 목표로 한다.

- 2020년 1월부터 2024년 6월까지 청약홈 1,853개 단지와 90만 가구의 청약 데이터를 분석하였다. (물량) 총매출의

49.0 - 특별공급 균형의 12.9%는 청약자가 없어 배정된 전체 물량을 일반공급으로 전환하였다. - 특별공급의 73.7%는 저출산 대응(다자녀, 신혼부부, 다자녀, 초산아, 신생아)에 광범위하게 공급된다. - (유형 및 지역) 특별공급 내에서도 - 특별공급의 절반은 청약자가 없는 것으로 분석되었다. 특히 다자녀(73.0%), 기관 추천(62.5%), 노부모 부양(61.6%) 특별공급은 60%를 상회하며 청약자를 찾지 못했다. - 그럼에도 불구하고 서울과 세종 지역의 특별공급 청약경쟁률은 두 자릿수를 상회하는데, 이는 분양가 상한제 적용에 따른 자산 배분 기대감 때문으로 해석된다. - 동일 균형점에서 특별공급과 일반공급의 청약경쟁률 차이가 크다. 특별공급 균형의 19.2%만이 경쟁하는 반면, 일반공급의 76.7%가 경쟁 상태에 있습니다. ( 방향) 지역별·품목별 수요 편차가 지속적으로 확대됨에 따라 새로운 주택 분양 시스템인 청약제도의 운영 효율성을 저해할 수 있어 개선이 필요합니다. - 공급 부족 물량은 일반공급으로 전환되어 현재까지 분양 시장은 지역 및 유형과 관계없이 초과수요 시장을 형성하고 있어 주택 시장에 심각한 문제를 야기하지는 않았습니다. 그러나 시장 상황이 급변하고 있어 제도적 효율성이 필요한 시점입니다. ( 단기) 특별공급 물량과 실제 공급량 간의 괴리를 해소하고 유형별·지역별 물량을 재조정해야 합니다 .



















- 공공, 민간, 지역별(분양가 상한제 적용 여부), 유형별 수요를 점검하여 정책 목표 물량을 재설정할 필요가 있습니다. 초혼·신혼 부부 수와 다자녀·시설 추천 건수 간의 조정을 시급히 고려해야 합니다. 저출산 대응, 분양 후 사후 관리 개념 도입, 민간 부문 자율성 확대 등 특별공급 정책 효과성 검토가

필요 - 특별공급은 1978년부터 50년 동안 시행되어 왔지만, 그 효과는 검증되지 않았습니다. 거주 기간, 자녀 출산 여부, 분양가 등 특별공급 수혜자의 행태를 관찰하여 정책 효과성을 검증할 필요가 있습니다. - 영국 퍼스트홈즈는 분양가를 규제하고 분양 후 관리하고 있습니다. 지역 내 분양가상한제 판매를 위해서는 자산배분 정책의 효과성을 높이고 저렴한 주택 재고를 유지하는 방안을 검토하기 위한 후속 관리 방안도 마련해야 할 것입니다. - 청약제도는 청약통장, 국민주택채권, 주택도시보증금 등 다양한 제도와 얽혀 있기 때문에 주택 분양제도 개선을 위한 장기적인 로드맵을 수립하는 것이 필요합니다 .

January 2006, the Ministry of Land, Infrastructure and Transport introduced the direct construction obligation system, which requires construction companies to directly construct a certain portion of the construction work contracted as a general contractor, in order to ensure proper construction of construction projects and promote sound development of the construction industry.

● In addition to the direct construction obligation system stipulated in the “Construction Industry Framework Act,” a policy has been announced to strengthen and expand the direct construction obligation and scope of general contractors for domestic metropolitan and local government (local government) construction projects with the goals of improving unfair subcontracting practices and enhancing quality through responsible construction.
- The Ministry of the Interior and Safety will introduce a “direct construction evaluation system” that will reflect the direct construction ratio of bidders in the evaluation for all general construction projects worth KRW 3 billion or more ordered by local governments from January 1, 2025.
- The Seoul Metropolitan Government has been promoting various forms of direct construction expansion policies since 2016, and recently announced plans to make direct construction mandatory for key major types of work with the goal of achieving ‘Zero Defective Construction in Seoul.’

● However, the direct construction policy, which is being strengthened centered on local contracts, is likely to cause various problems, such as causing confusion in the construction production system that has been maintained for a long time, which is different from the original purpose of the direct construction obligation system, and it is expected to cause various adverse effects, including the contraction of the local construction industry.

● Therefore, this study examines the issues of the direct construction obligation system from various angles, focusing on the changes in the local contract system for the introduction of direct construction evaluation and the Seoul Metropolitan Government policy promoting the direct construction expansion policy, and proposes reasonable policy improvement measures based on the identified problems.

● This study examines how ESG management, which has recently emerged as a new management paradigm, can generate future results at the level of construction companies and the construction industry. ● As a result of analyzing previous studies, the promotion of ESG management by construction companies is expected to have a positive impact on corporate performance in the long term through the path of enhancing corporate sustainability and improving financial performance. ● First, ESG management's path to enhancing corporate sustainability is divided into a path to reduce sustainability threats from stakeholders and a path to respond to ESG-related market transitions and stranded assets in the future. ● Second, the financial performance improvement path of a company is divided into the cost reduction path of a company and the output increase path of a company. - The cost reduction path is divided into direct cost reduction such as energy/resource cost and regulatory violation cost, and indirect cost reduction such as financing cost, civil complaint management and dispute cost. - The performance improvement path is divided into the performance of preoccupying new markets related to ESG management, such as green construction and renewable energy plants, and the improvement of transaction/collaboration performance with stakeholders. Examples of improving transaction/collaboration performance include increasing follow-up orders by improving the reliability of the client, improving productivity by improving employee immersion/loyalty, and improving the performance of pre-sale/rental projects by improving reputation. ● The performance improvement from the promotion of ESG management can be seen not only at the individual construction company level but also at the construction industry level. - Expanding ESG management to the construction industry means that all participants, including comprehensive and professional construction companies, material manufacturers, orderers, and licensing agencies, practice ESG management and establish the value of ESG management in the industry. ● If all participants in the construction industry, including construction companies, practice ESG management, structural problems such as the culture of A, corruption practices, and excessive safety accidents, which have been negatively affected by the rebirth of the construction industry, can be improved. ● To create ESG management performance at the construction industry unit, we first extract core values of ESG management and apply them to the four structural problems of the construction industry to derive improvement directions and action tasks to improve problems from the ESG management perspective. - As a result of extracting core values of ESG management, responsibility for the environment and society, stakeholder consideration, win-win and public, compliance and ethics, long-term performance pursuit, and financial/non-financial performance balance were extracted. - Directions for improving the four structural problems of the construction industry through the application of core value factors: ① Conflict/conflict structure between participants under the original contract structure → Win-win cooperation based on fairness and trust and long-term mutual benefit maximization ② We are vulnerable to corruption due to the nature of the industry dependent on orders and licenses → Spread sound business practices based on fairness/ethics ③ Vulnerable safety accidents due to outdoor production and continuous on-site changes → Establishment of safety-first practices and cultures ④ Damage to the natural environment and characteristics of pollutants/carbon emissions of construction activities → Conservation of the natural environment and securing a preemptive response system to climate change

● Studies on the construction industry's manpower in the early 2000s mainly dealt with the shortage of young skilled manpower, but in recent years, the shortage of young technical manpower has also become serious. Accordingly, it seeks to find the reasons for the decline in values that the young generation values and job attractiveness of the construction industry, and to prepare strategies to secure young talent. ● The current youth generation is evaluated as the smartest and most creative generation in history and the generation with excellent digital capabilities. Cooperation between the young generation with technical competencies and the older generation with abundant work experience will be the basis for the sustainable growth of the construction industry. ● The youth generation is the fastest group to accept and lead changes in the times, and their values and perceptions are important indicators for predicting the future of the construction industry. This study summarizes the values of the youth generation into 'seeking growth' and 'a member of an advanced society', and suggests strategies for securing young talent in the construction industry in these two directions. ● Based on the values of the young generation of pursuing growth and being a member of an advanced society, the following three strategies are derived to secure young talent in the construction industry. ● Close cooperation among all participants in the construction industry, such as companies, academic and research circles, cooperative organizations, and educational institutions, is required to secure young talent in the construction industry. In addition, the government's policy efforts to secure good jobs and establish a growth ecosystem in the construction industry, which is the basis for securing young talent, are also very important.

● Since the inauguration of the Yoon Seok-yeol administration, supply measures (August 16, 2023, September 26, 2024, January 10, 2024) have been announced every year, but concerns about supply instability from 2025 to 2026 remain as it does not lead to a visible increase in supply. - The recent reduction in construction could lead to a decrease in completion in 2025. - By region, the Seoul metropolitan area is likely to affect the market from 2025 and the provinces from 2026. ● This study examines policies by major sectors such as ① public housing, ② maintenance projects, ③ non-apartments, and ④ regulation and demand growth. Through this, it is intended to reflect on the meaning of the housing supply policy and suggest the direction of future policies. ● It is intended to expand the volume of (public housing) and speed up the construction. It will be possible to convert unstable demand into standby demand only when rapid housing supply is made in the area where the green belt is released. - The proportion of supply in public housing sites during the completion of apartments is high at 33.6%, and the short-term mass supply effect is also large. If it is supplied quickly from a symbolic location, a market stabilization effect similar to that at the time of supply of nesting housing can be expected. ● It supports simplification of procedures and improvement of business feasibility, but it is difficult to feel the policy effect in a short period of time due to the specificity of a long-term project. While maintaining the direction of revitalizing the maintenance business, it is important to restore market trust through rapid legislation. - As the most important means of supplying housing in the city center, 65.4% of the completion of Seoul apartments accounted for maintenance projects. However, it is difficult to feel the effect of policy support as a long-term project with an average project period of 14 years. - Due to the effect of the expansion of integrated deliberation, the number of complexes that have moved to the construction deliberation stage has increased, but the increase in new entry complexes is insignificant. The direction of shortening the business period, such as fast track, is positive, but it will help increase the number of workplaces in the entry stage only when market trust is restored through rapid legislation. ● Public new construction purchase agreements, which are strong policy interventions (non-apartments), are attracting market attention. Strengthen monitoring of purchase performance in the short term. In the long term, it is necessary to find a balance with urban management. - BEPART is experiencing major housing supply channels or supply declines, accounting for 26.6% of all houses, so direct public purchases are sufficient. As if representing market difficulties, there is a lot of interest in public new purchase agreements, but the performance situation may be different, so monitoring of implementation is necessary. ● (Regulation and demand increase) It is necessary to find mid- to long-term countermeasures against the local market undergoing structural changes and to improve the sensitivity of supplier financial support. - Local markets, such as population decline, are facing structural demand changes, requiring long-term consideration, and supplier financial support requires efforts to increase the experience of policy support from the perspective of companies. ● (Comprehensive Evaluation) Regardless of fluctuations in housing prices, the supply of affordable housing is a direction that the government should continue to promote. However, it is more important to maintain a stable policy direction as it is effective over a long period of time compared to the demand policy.

● With Korea entering an aging society where the vitality of society is declining due to a decline in the fertility rate and an increase in the proportion of the elderly population, it is expected to enter an ultra-aged society next year Local small and medium-sized cities overlap with population outflows, and the risk of regional extinction is increasing. ● Amid the rapid supply and aging of Korea's infrastructure in the 1970s, extreme climate changes such as heavy rains and heat waves also increase due to global warming, increasing the risk to facilities. - Facilities older than 30 years from 2028 are expected to exceed 40% of all facilities ● Although the size of Korea's economy has continued to expand, low growth and low national competitiveness have continued recently, and public happiness is also low. ● Both the United States and Europe have recently expanded infrastructure investment, and in common, they promote people's safety and economic growth through infrastructure investment. ● Infrastructure investment has proven various investment effects such as economic ripple, job creation, and income distribution in many domestic and foreign literatures, and the United States recently emphasized the effectiveness of infrastructure investment once again in the Presidential Economic Advisory Organization (CEA). - In the 2016 Economic Report of the President, the U.S. Presidential Economic Advisory Organization analyzes that raw material purchases and labor demand increase in the short term, and in the mid- to long-term, the overall productivity of the economy and the potential economic growth rate increase - The European Investment Bank analyzes that infrastructure investment has increased because modern, properly functioning infrastructure is critical to national competitiveness and economic growth and provides social benefits for many years ● SOC was continuously supplied, but Korea's SOC stock is not much compared to major advanced countries. - As of 2018, the SOC capital stock, which combines Korea's land facilities (road, rail, etc.) and aviation facilities, is 21.5% of GDP, lower than France (31.3%), Germany (28.7%), and the United States (22.0%), and is more than 5%p lower than France and Germany ● While Korea's SOC fiscal investment has repeatedly increased and plummeted, it is far below the level of 2010 when real prices are converted considering price levels, and the future investment is not large. ● Meanwhile, the appropriate SOC investment in 2025 considering economic growth and inflation is expected to be KRW 58 trillion to KRW 60 trillion, and the central government's SOC investment is expected to be KRW 0.6 trillion to KRW 2.1 trillion short. - The size of SOC investment in 2025 (central government + local government + private investment + public corporation investment) is 54.7 trillion won, 0.6 trillion won to 2.1 trillion won short of 58.0 trillion won to 60.0 trillion won to achieve the economic growth rate ● Public construction investment centered on disaster and disaster-related facilities and aging infrastructure that can cause human damage is more important than ever to cope with aging in Korea, such as low birth rate, aging, regional extinction, and decline in national competitiveness. - While central and local governments need to expand SOC investment, incentives are needed to expand private SOC investment that can be partially supplemented