Budget ministry plans to restructure 900 state projects to save up to 7.7 trillion won

Korea's budget ministry said Monday it has designated around 900 state-funded projects for budget cuts, consolidation or abolition in a move expected to help the government save up to 7.7 trillion won ($5.12 billion).

The Ministry of Planning and Budget made the announcement after reviewing 2,487 state-funded projects over the past four months, deciding to restructure 36.2 percent of them.

From 2021 to 2025, the government restructured an average of 15.8 percent of the projects reviewed.

In detail, the budget for 858 projects will be reduced, while 40 will be consolidated with others. Three projects will be abolished entirely.

Projects subject to budget cuts will be required to reduce spending by at least 15 percent.

"The latest evaluation marks the start of efforts to restructure spending ahead of the formulation of next year's budget," a ministry official said.

Under the evaluation, the budget for commuter buses for employees of the interior ministry in the central city of Sejong will be reduced, with the funds to be redirected to areas that lack adequate public transportation.

Korea will also abolish the science ministry's 3-D printing promotion initiative, citing the private sector's strong growth potential.

Yonhap