Seoul: South Korean acting President Choi Sang-mok said Wednesday that the government will expand local development projects and buy unsold new homes in provincial regions in an effort to support the construction industry struggling with weak domestic demand.
Choi rolled out the plan during a meeting meant to check people’s livelihoods and the economy with relevant ministers, noting that South Korea is facing growing downside risks amid heightened uncertainties at home and abroad, Yonhap news agency reported.
“The Korea Land & Housing Corp. (LH) will buy around 3,000 unsold new apartments in provincial areas, and will review additional purchases in accordance with market situations,” Choi said.
The number of unsold homes has risen markedly in non-metropolitan areas amid the cooling property market and feeble growth momentum.
The government will give incentives to financial institutions that provide more mortgages for home buyers in provincial regions, and will announce details about potential preferential loan rates for such borrowers, Choi added.
To facilitate investment in provincial regions, the government will push for various local development projects, including the construction of new underground railway systems in the southern city of Busan, the central city of Daejeon and Ansan, southwest of Seoul.
Policy focus will also be on conducting infrastructure projects that help boost public safety.
“To ensure aviation safety, the government will install bird detection radars at 15 airports nationwide and improve facilities. For such projects, we will invest 260 billion won (US$180.36 million) by 2027,” Choi said.
(IANS)
