The Ministry of Economy and Budget, led by Acting Minister Lim Gi-geun, held the 1st Fiscal Project Evaluation Committee to review and approve the appropriateness of five major projects exempted from national policy in August 2023, as well as two projects for re-examination. The reviewed projects cover a wide range of fields, including the Rural Basic Income Pilot, Integrated Medical and Care Support, Overseas Expansion Support for Distribution Companies, AI-Based Distributed Energy Special Zones, and AI-Based Distributed Power Grid Industry Development. Additionally, the expansion of the Gangneung Public Sewage Treatment Facility and modernization of the Incheon Samsan Agricultural Wholesale Market were re-examined. Each ministry pledged to swiftly complete the announcement procedures and ensure smooth project implementation.
The Rural Basic Income Pilot (Ministry of Agriculture and Food) will provide 150,000 KRW per month in local gift certificates to residents of 10 rural counties at risk of depopulation from 2026 to 2027, with a total budget of 1.2664 to 1.2676 trillion KRW. The Integrated Medical and Care Support project (Ministry of Welfare) will be implemented nationwide from 2026 to 2030 with a budget of 945.1 billion KRW, aiming to reduce care blind spots for the elderly and disabled. The Overseas Expansion Support for Distribution Companies (Ministry of Industry) will diversify K-consumer goods’ global market with a budget of 194.5 billion KRW from 2026 to 2028. The AI-Based Distributed Energy Special Zone Support (Ministry of Climate) will invest 140 billion KRW from 2026 to 2030 in next-generation power grid demonstration projects such as V2G and ESS Farm. The AI-Based Distributed Power Grid Industry Development (Ministry of Climate) will allocate 840.8 to 998.4 billion KRW from 2026 to 2030 to promote new energy industries like VPP and microgrids.
The Gangneung Public Sewage Treatment Facility Expansion (Ministry of Climate) will invest 64.9 billion KRW from 2024 to 2029 to expand sewage treatment capacity and improve local living conditions. The Incheon Samsan Agricultural Wholesale Market Modernization (Ministry of Agriculture and Food) will modernize outdated facilities and equipment from 2024 to 2027 with a budget of 89 billion KRW, enhancing competitiveness in the northwest region. Acting Minister Lim emphasized the need for rapid execution of national agenda projects to achieve tangible results for the public, urging ministries to accelerate the review process.
With these approvals, projects are set to launch between late February and April, aiming to stabilize rural incomes, close care gaps, expand K-consumer goods globally, and foster new energy industries. The AI-based energy projects are expected to be a turning point for Korea’s power industry, promoting digital transformation and efficient resource use. Infrastructure modernization will contribute to balanced regional development and improved quality of life. The government is committed to prompt execution and systematic management to deliver outcomes that citizens can truly feel.
This fiscal project review demonstrates Korea’s strategic response to structural challenges such as depopulation, aging, and energy transition. The AI-based distributed energy and power grid projects are pivotal for digital transformation and the growth of new energy industries, accelerating the demonstration and spread of advanced technologies like smart grids and VPPs. Social safety net projects, including rural basic income and integrated care, support balanced regional development and inclusive growth, while infrastructure upgrades lay the foundation for sustainable urban and rural progress. Collectively, these initiatives are expected to enhance national competitiveness and deliver real improvements to citizens’ lives.