Construction for New Capital to Start in 2007 at the Earliest

Deputy Prime Minister and Minister of Finance and Economy Lee Hun-jai announced on Friday, “The detailed construction work and fund investment for the capital relocation may possibly occur in 2007 at the earliest.”

Minister Lee, at the regular press conference held at the Gwacheon Government Complex, said, “This matter has to be carried out calmly by the necessary process and planning in which the site has to be decided, secured, and designed for the new capital.”

He stressed, “Since this is a national policy requiring a long amount of time, a financial demand will not occur right at this moment. It will not particularly affect the current stagnant economic situation.”

Relating to the increasing financial burden from the huge national projects in which the government has recently engaged, Minister Lee added, “These are long-term projects and the financial burden will not be concentrated so there will not be much of a problem.”

However, with government debt rapidly increasing and with the supplementary budget certain to be drawn up this year for the 10th year in a row, in this situation where the “red light” is already showing in the finances, some are viewing that Minister Lee is taking this all too optimistic.

Jin-Hup Song jinhup@donga.com