Gov`t to invest 50 tln won in `green` projects

SEOUL, Jan. 6 (Yonhap) -- The government will invest 50 trillion won (US$37.87
billion) in "eco-friendly" development projects over the next four years to
create jobs and bolster the slumping economy, the finance ministry said Tuesday.
The investment plan, which was endorsed at an earlier cabinet meeting, comes as
the government is stepping up efforts to generate more jobs and kick-start the
economy, which is slowing at a faster-than-expected pace.
"The government will invest 39 trillion won in nine major businesses and spend 11
trillion won on 27 related businesses into 2012," the Ministry of Strategy and
Finance said in a statement, forecasting its so-called "Green New Deal" project
would create around 1 million jobs.
Job creation slumped to a 5-year low in November, while the economy, Asia's
fourth-largest, grew 0.5 percent on-quarter in the third quarter of last year,
the slowest pace in four years.
Of the nine major businesses, a total of 18 trillion won will go towards
enhancing use of the country's four major rivers by building dams, reservoirs and
other water-management facilities through 2012. The project will create around
280,000 new jobs, the ministry said.
"South Korea suffers an average of 2.7 trillion won in damages from flooding
every year. Dam construction and overall river-streamlining efforts will
significantly reduce the damage while at the same time generate leisure and
tourism demand in provincial areas," the ministry said.
The government will also push to build nationwide "green" transportation
networks, including low-carbon emitting railways, bicycle roads and other public
transport systems costing some 11 trillion won and creating 160,000 new jobs over
the next four years.
Around 2 trillion won will be set aside to build small and medium-sized dams to
help secure more water resources and stave off flooding and other weather-related
disasters. According to the ministry, the project is expected to create some
30,000 new jobs.
Investments will be made in the production of low-carbon emitting cars, including
hybrid vehicles, and developing clean energy sources. Diverse energy-recycling
projects will also be launched, according to the ministry.
As part of efforts to protect the environment, the ministry said that it will
spend 3 trillion won in expanding forests. The public sector will join in the
effort by building 2 million "green" homes and offices nationwide, which will use
less energy and electricity.
"Under the Green New Deal project, we will be able to obtain a potential growth
engine, while at the same time generating jobs without hurting the environment,"
the ministry said. "We will do our utmost in carrying out the envisioned
investment and business plans as scheduled by effectively sharing roles among
government agencies."
The ministry said that it will provide diverse financial, tax and regulatory
benefits to facilitate the overall business activities and open a consultation
body between the government and companies to encourage the participation of the
private sector.
kokobj@yna.co.kr
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