Government Announces Stabilization Plan for 'Targeting 2% Increase in Construction Costs'

The government held a meeting of economy-related ministers today and announced a stabilization plan to curb construction costs that have soared in recent years.

First of all, as part of stabilizing material costs, the government decided to flexibly operate the limit on the collection of sea aggregates, and to change the law so that forest aggregates can be quarried as needed in 'soil-restricted areas'.

In order to stabilize labor costs, the government will give preferential treatment to construction companies, such as reflecting them in the construction capability evaluation, and ease related regulations so that foreign workers can be used in the right place.

In the case of national policy projects, the purchasing stage will be reduced so that public institutions, which are ordering companies, can directly purchase products from SMEs without going through the Public Procurement Service, and large-scale public works such as the third new city will install batch plants, which are on-site ready-mixed concrete manufacturing facilities.

Through these measures, the government said it will stabilize the increase in construction costs, which has been an annual average of 8.5% over the past three years, to around 2% by 26.