[On-site video +] "Project cost increase rate of around 2%...Strengthening consumption and investment"

[Anchor]
These days, construction costs have risen so much at every difficult construction site.

The government is holding a meeting of economy-related ministers to discuss ways to manage construction cost growth at around 2% a year by 2026 and promote consumption and investment to strengthen the domestic economy.

Let's listen to all the remarks made by Deputy Prime Minister for Economy Choi Sang-mok at the Seoul Government Complex a while ago.

[Choi Sang-mok / Deputy Prime Minister for Economy and Minister of Strategy and Finance]
Iran launched a missile attack on Israel early this morning.

This has heightened tensions in the Middle East and led to increased volatility in global stock markets and international oil prices.

The government will closely examine the impact of the financial market and the real economy with a high sense of vigilance, while responding quickly in cooperation with related agencies if necessary.

Consumer inflation in September, announced just before, was 1.6%, entering the 1% range for the first time in 42 months, showing a downward stability.

However, uncertainties such as increased volatility in international oil prices and rising agricultural prices due to abnormal climate exist, so we will do our best to stabilize prices without letting go of the tension.

The economy is continuing a long-term recovery trend on the back of strong exports.

Exports reached $58.8 billion in September, the largest this year and the top of all-time September, continuing its 12th consecutive month of export plus and 16th consecutive month of trade surplus.

However, in the case of domestic demand, there is still a relatively slow recovery, and there is a temperature difference between sectors.

Facility investment is recovering in the second half of the year, but construction is affected by last year's sluggish orders with a time lag.

Consumption is a trend in which the service sector has increased for three consecutive months, showing signs of recovery, and the consumption capacity is improving due to the increase in real wages.E is also constraining the recovery of vulnerable sectors such as small business owners and provinces, along with structural factors such as accumulated debt burden, outflow of local population and aging population.

The government will gather the capabilities of all ministries to further accelerate the recovery of domestic demand through "customized prescriptions for each sector."

Today, we will launch the 'Investment Revitalization Ministerial Meeting' to discuss various measures to accelerate investment recovery.

In order to speed up the recovery of investment, we will support you on a two-track basis, such as promoting the execution of planned businesses and strengthening the investment capacity of companies.

We will support the operation of the on-site waiting project worth about 24 trillion won within the fourth quarter and draw up a dispute mediation plan for the 20 trillion won joint public-private construction project.

Among the 110 trillion won worth of facility investment targeted by the top 10 manufacturing industries this year, we will also closely manage the implementation of the 62 trillion won investment planned for the second half.

In addition, the temporary investment tax credit, which is being extended until the end of this year, will be extended by one more year until 2025 for small and medium-sized companies.

We will also push ahead with the "Three Major Projects for the Vitality of Construction Investment."

First, we actively supplement the sluggish construction orders with additional public investment and private capital revitalization.

We will increase additional investment in public institutions by 1 trillion won in the second half of the year to a total of 8 trillion won, and accelerate the early supply of public housing.

With the aim of expanding private investment by 30 trillion won over the next five years, we will expand the inflow of private funds and rationalize regulations, while implementing various measures, including special cases to ease the burden of rising construction costs.

Second, we will actively respond to the rise in construction costs, a key obstacle in the construction industry.

We will induce self-consultation among industries to stabilize the supply and demand of core construction materials such as cement and aggregates, and expand the material supply base to manage the construction cost increase rate stably at around 2% per year.

Third, we will strengthen incentives to resolve local unsold apartments to revitalize the local construction industry.

We will temporarily extend the exclusion period from the total comprehensive real estate tax for unsold houses owned by home builders to seven years.

Finally, we will strengthen customized support for each consumer sector.

We will promote consumption of durable goods by redesigning various consumption promotion programs centered on the non-metropolitan area and expanding electric vehicle subsidies for multi-child households from November.

We will also strengthen support for vulnerable people such as ordinary people and small business owners.

We will ease the financial burden on the vulnerable by expanding the scope of suspension of repayment of policy-based financial services and establishing a full exemption system for small debts of basic recipients.

In order to ease the management burden of small business owners, we will provide three sets of financial support and a new start fund without a hitch, while working to come up with a win-win plan for the delivery sector within this month.

In addition, we will establish a solid foundation for small business sales by activating the use of Onnuri gift certificates during the consumption promotion event.

We will also strengthen support for farmers and fishermen, such as setting a limit on the price of gifts for agricultural and fishery products at 300,000 won at all times under the Solicitation Prohibition Act.

We will also do our best to stabilize perceived prices such as vegetables.

To stabilize the supply and demand of cabbage, we will supply an additional 10,000 tons through early shipment of government available supplies and expansion of imports, and extend the allocation tariff on cabbage and radish, which is scheduled to end at the end of this month, until the end of the month to ease the burden of shopping carts.

All ministries will work together to check the domestic support tasks prepared today so that they can work well in the field.