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A Fresh Momentum for the Household Economy
A Boost for the Economy in the Doldrums
People have become so used to hearing the words “economic recession” as the household economy is going through a period of cold spell. Against this backdrop, K-water has put in place a series of measures to spend its budget ahead of schedule to give a boost to the local economy that is mired in a prolonged recession.
📝Text by. Editorial Team / 💾Source. K-water
The specialty agricultural products booth set up at the Nakdong River Love for Community Market of Lunar New Year celebration held on January 22 at the Nakdong River Basin Head Office of K-water in Daegu.
Customized Support for the Local Economy
As a major public corporation, K-water will spend KRW 170.4 billion of its budget ahead of schedule in an effort to help stimulate the household economy. The budget has increased by KRW 68.0 billion compared to the average spending during the same period in the last four years. This is part of the efforts being made by K-water to be in synch with the government’s policy measures aimed at economic recovery amid the sluggish domestic consumption.
Early budget spending will focus primarily on finalizing contracts for medium- and large-scale SOC construction projects earlier than planned and making advance payments for the projects. This move is intended to boost the sluggish construction sector and create spill-over effects for subcontractors, suppliers, and construction workers.
K-water will be the first public corporation to extend the special support program voluntarily introduced in 2021, under which it subsidizes advance payment guarantee insurance fees for qualified companies by the end of 2025. Advance payment guarantee insurance fees must be paid as a precondition for advance payment, with K-water subsidizing up to 100% of the fee to ease the financial burden for small & medium enterprises and small business owners.
K-water also implements other projects tailored for boosting the local economy.
K-water will spend part of its budget on helping residents of local communities directly affected by sluggish consumption to fuel domestic demand. To that end, KRW 45.0 billion will be spent earlier than scheduled on projects to help boost the local economy in areas located around dams. K-water will expand the farmers’ market for local specialty products—which opens regularly—and help increase income for local farming households. It will also run campaigns to promote local tourism. Specifically, K-water will create videos highlighting local attractions in areas around its regional offices across the country and carry out aggressive promotional campaigns on social media, providing a major driving force for boosting local tourism. Lastly, K-water will finish its annual recruitment for regular positions in February—which is earlier than usual—and recruit over 400 interns. K-water also plans to create more than 4,000 win-win jobs for elderly and middle-aged people living in areas around dams.
“As uncertainty over the economy continues to grow both at home and abroad, public organizations are required to play their respective role and make concerted efforts to cope with economic uncertainty now more than ever. We will mobilize all the resources available to us including our budget and programs to invigorate local tourism in order to help increase domestic demand and create economic effects that can be felt," K-water president Yun Seog-dae said.
Highlights of K-water’s Early Budget Execution Plan
