River development project to help regional economy: official

SEOUL, Dec. 17 (Yonhap) -- Government plans involving development around South
Korea's four main rivers to protect against floods and drought can help boost
regional economic growth, a senior policymaker said Wednesday.

Vice Finance Minister Kim Dong-soo said in a radio interview that the 14 trillion
won (US$10.5 billion) social overhead capital (SOC) investment will be a boom to
regional construction companies, who have been hard hit by the current economic
slump.
He said studies have shown that 1 trillion won worth of SOC can create 18,000 new
jobs and fuel 2 trillion won in related production and services.
"Because these projects create jobs in construction, they should benefit the
underprivileged the most," the official claimed.
The Ministry of Land, Transport and Maritime Affairs announced Monday that
initial work could begin within the year to develop the Han, Nakdong, Geum and
Yeongsan rivers, with the entire project slated for completion by late 2011.
Work will be focused on strengthening embankments, restoring the eco-system and
maintaining appropriate depth to facilitate water flow.
Kim also said that employment conditions in the first half of 2009 could be worse
than the current situation as the economy is expected to bottom out.
He stressed, however, that creating 100,000 new jobs next year would be possible
if the government pushes forward its economic stimulus package, including the
front loading of its budget spending before June and implementation of tax cuts
and other incentives to fuel consumption and investment.
The government said Tuesday that it is aiming for 3 percent growth in 2009, down
from an earlier projection of 4 percent.
The vice minister added that concerns about the country's fiscal health due to
increased spending amid dwindling revenues were overrated. He pointed out that
compared to other countries in the Organization for Economic Cooperation and
Development, South Korea's fiscal balance sheet remained sound.
Kim, meanwhile, said that there may be a steady drop in housing prices in certain
neighborhoods but speculated that such trends would not affect the entire real
estate market.
yonngong@yna.co.kr
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