Port Budget Will Increase While SOC Budget Decreases

A total of 42.1 billion won will be supplied to the sea-transport and
sailor divisions next year. According to the MOMAF (Ministry of Marit
ime Affairs and Fisheries), coastal navigations will get 7.9 billion w
on as a fuel subsidy for the first time because of rising diesel fuel
prices. Coastal navigations was the last one not to have been provided
with duty free oil amongst the maritime transport industries. This ca
used continual disputes over the principle of equity in taxes.
MOMAF will decide on the details of who will receive subsidies method
s, and times by collecting coastal navigations' opinions through an ex
planatory meeting. This subsidy will help coastal navigations to stabi
lize their manaqements and changing their business style. Even though
MOMAF has decreased the SOC (Social Overhead Capital) budget for next
year, the port budget will gain. The government has planned to invest
comparatively highly in the port, to prepare for increasing cargoes in
next decade and to free the northeastern logistic centers of detentio
ns.
According to these plans, the total SOC budget for next year is 149.6
8 billion won, up 1.4 percent over this year's budget of 147.68 billio
n won. Despite this, the SOC for the port will be increased 2.3 percen
t over last year's.
Several 2001 port plans have been suggested. As a new port developmen
t, Pusan New Port and Kwangyang Port will be built without hesitation,
costing 208.4 billion won. Also, the main ports, Northern Inchon Port
, Asan Port (Pyoungtaek Port), Mokpo new Port, and the New Pohang Youn
gil Port will be developed with 165.5 billion won and will receive a f
urther 325.5 billion won to expand main port facilities.
To handle the export and import cargoes, Pusan, Ulsan and Inchon will
be supplied with 78.9 billion won. Kunsan, Mokpo and Sokcho will rece
ive 119.9 billion won to prepare the ports for import and export with
China and other northern Asian countries.