By Lee Dasom

The Ministry of Land, Infrastructure and Transport will support investment and development projects abroad by domestic companies, with a view to landing construction orders overseas worth a combined KRW 69 trillion by 2027.

The ministry on July 23 in a meeting of economy-related ministers announced measures like this to invigorate such projects.

Demand for new and expanded infrastructure and housing and urban development has steadily grown in construction markets abroad, the ministry said. Such projects to attract private investment are accordingly rising to alleviate the fiscal burden of each host country.

For winning an investment development project, orders can be accepted at all stages such as business planning and development, financing and construction, and operation and management. So front and backward ripple effects and high added value can be expected.

Korean corporations, however, seem focused on contracting when landing foreign deals.

On this, the ministry said, "We've prepared a plan to enter the top market for investment and development abroad by raising the added value market for overseas construction and expanding advances to all building fields."

The plan has four main pillars: set up governance for private-public cooperation; reinforce support for packages; expand specialized entry into urban development; and boost the capabilities of investment projects by private companies.

First, the selection of strategic countries and projects and a plan to support investment and development projects every year will seek to maximize the effects of summit diplomacy.

In addition, public institutions will get a stronger role through the drafting of public-private entry strategies for each promising market for specialized public companies such as those of rail, roads, airports and housing.

The promotion of new projects connecting official development aid and the Economic Development Cooperation Fund will boost the profitability of investment and development projects and alleviate corporate burden due to long-term investments.

Considering the long-term and large-scale nature of urban development projects, the ministry will promote the Urban Growth Partnership Project.

If a specialized public institution finds a project, private builders make equity investments and clinch construction deals, and the institution later supports the companies with development of the project, completion and occupancy.

The ministry will also promote a new town project in Vietnam's Bac Ninh Province that is sized similarly to Pangyo New Town in Seongnam, Gyeonggi-do Province, as Korea's first urban export project. This order came thanks to diplomacy conducted last year by President Yoon Suk Yeol.

"Now is the time to expand our advance to the investment and development project sector, a leading high value-added market, in line with our corporations' global capacities," Minister of Land, Infrastructure and Transport Park Sangwoo said. 

"We will boost K-New Town exports through an active public role and front-end orders with the public sector's participation."

dlektha0319@korea.kr