Issue Focus

● Infrastructure investment not only contributes to long- and short-term economic growth, but also can grow social benefits such as job creation, individual and regional improvement of income inequality, quality of life of the people, and welfare spending. ● In Korea, (assuming that other conditions are the same) the real GDP growth rate is expected to increase by 0.076%p and the number of employed by 13,900 persons by 1 trillion won in infrastructure investment. ● In order to maintain the economic growth rate over the long term, infrastructure expenditure of 2.5-2.8% to GDP is needed, and it is estimated that there will be insufficient amount of 8.3-16.9 trillion won per year on the average. ● The policy direction of infrastructure investment should be ① preemptive response to improvement and reinvestment infrastructure demand, ② activation of private infrastructure investment through strengthening of publicity, ③ reflecting infrastructure investment object and construction method suitable for 4th industrial revolution era, and ④ expanding scope of infrastructure etc.