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2022 MOF Budget Finalized at KRW 6.4171 Trillion

Date. 2021-12-06
Hit. 261

-Marking a 4.1% increase from the 2021 budget, with KRW 80.6 billion added to the original proposal after parliamentary deliberation-


□ The South Korean Ministry of Oceans and Fisheries (MOF; Minister MOON, Seong-Hyeok) announced that the National Assembly finalized the MOF spending bill for 2022 (including funds) at KRW 6.4171 trillion*, up KRW 80.6 billion** from the originally proposed KRW 6.3365 trillion. This represents a 4.1%, or KRW 254.3 billion, increase from last year’s budget of KRW 6.1628 trillion.

* The combined total of MOF expenditures (KRW 6.3849 trillion, up 3.6%) and the Climate Response Fund (KRW 32.1 billion, to be set up in 2022)
** KRW 94.1 billion added to and KRW 13.5 billion cut from the original budget proposal


□ The final budget can be broken down into three broad categories: KRW 2.8326 trillion for fisheries and fishing villages (up 5.9% from 2021), KRW 2.0290 trillion for maritime and port affairs (down 3.8% from 2021) and KRW 1.3083 trillion for marine and environmental affairs (up 11.8% from 2021).


○ It also includes KRW 823.7 billion for R&D, a 5.3% increase from KRW 782.5 billion in 2021.

○ There are a number of programs and projects that account for the KRW 80.6 billion increase after parliamentary deliberation. Please see below for more details.


(1) Coastal and Marine Carbon Offset and Stronger Marine Conservation: + KRW 10.3 Billion


□ (Coastal and Marine Carbon Offset) As part of its efforts to secure carbon sinks in coastal and marine areas, MOF is set to double its tidal flat halophytic vegetation restoration* program from the current two locations to four (from KRW 1.5 billion to KRW 3 billion). The allocated amount also includes KRW 1.1 billion for R&D in eco-friendly artificial marine structures to boost the settlement of submarine plants.


* After taking restoration costs into account, tidal flat vegetation is found to have a carbon absorption rate that is 3.45 times higher than that of forests.


○ In order to manage coastal and marine carbon sinks, including the nation’s tidal flats registered as Ramsar sites, other coastal wetlands and underwater forests, in a more systemic manner, the budget includes KRW 100 million for a feasibility study on the Ramsar Tidal Flat Center and KRW 1.2 billion for field investigations on the existing 129 Underwater Forest sites.


□ (Marine Conservation) The budget also includes KRW 3.6 billion for the first-year phase of the Garolim Bay Marine Garden Construction Project, a new project to conserve and sustainably manage the Garolim Bay, which is home to highly valuable coastal ecosystems, and build an eco-tourism model for shared growth with local communities.

○ To conserve and promote marine diversity, the budget includes KRW 1.6 billion for the first-year phase of the National Marine Species Restoration Center Establishing Project.

(2) Greater Safety in Marine Fisheries: + KRW 11.4 Billion


□ (Greater Coastal and Offshore Safety) The budget includes KRW 9.2 billion for the e-Nav Disaster Recovery Center Construction Project to prevent unexpected service failures of the e-Nav* system in the event of contingency situations such as natural disasters or power outages.

* Utilizing the LTE-M network for marine digital communications, it provides real-time, uninterrupted maritime traffic, weather forecast and other marine safety information (Launched in January 2021).


○ It also includes a KRW 1.6 billion addition to the existing Coastal Improvement Project (from the current KRW 59.3 billion to KRW 60.9 billion) to convert areas prone to coastal erosion and other natural hazards into safe waterfront spaces.


* Imrang-Mundong District, Gijang-gun, Busan (KRW 600 million); Jigyeong-Hyangho-Sodol District, Gangneung (KRW 600 million); Oeong District, Sokcho (KRW 400 million); etc.


□ (Seafood Safety) The budget includes KRW 600 million for more radiation testing tools to be installed at 10 seafood auctions to encourage private-sector engagement in enhancing seafood safety.


(3) Greater Competitiveness in Marine Fisheries: + KRW 32.5 Billion


□ (Fisheries Competitiveness) To nurture a high-value fish and seafood industry and enhance its competitiveness in export markets, the budget includes KRW 2.1 billion to design the Busan Seafood Cluster as well as KRW 1.1 billion to enhance the capacity of companies in the Cluster to develop new technologies, etc.


* Busan Seafood Cluster (2022-2025): With two development complexes, the Cluster will be operated with a budget of KRW 81.3 billion (KRW 56.9 billion and KRW 24.4 billion funded by the central and local governments, respectively).


○ The budget includes a KRW 7.5 billion addition to the existing local aquaculture infrastructure building project*, including eco-friendly Pacific oyster farming facilities, as well as KRW 20 billion for the Win-Win Seafood Discounts to promote seafood consumption across the nation.


* Eco-friendly Pacific oyster farming facilities (+ KRW 3 billion), eco-friendly compound feed manufacturing facilities (+ KRW 2 billion), oyster shell recycling facilities (+ KRW 700 million), etc.


○ It also includes KRW 500 million for replacing the aged joint job training vessel with a new vessel*, which is expected to improve the job training environment for the students of fishery high schools.


* The job training vessel to be constructed from 2022 until 2025 for a joint use by three fishery high schools in Pohang, Wando and Boryeong.


□ (New Industry Development) The allocated amount also includes KRW 200 million for a feasibility study on the construction of the Marine Biomedical Care Intermediary Technology Development Center to create a marine bio cluster near the East Sea.


(4) Coastal Economic Revitalization: + KRW 28.1 Billion


□ (Port SOC) In response to a substantial increase in vessel size, port automation, and other trends in global logistics, the budget includes new spending items: KRW 14.5 billion for the construction of the Jinhae New Port to expand the operations of Busan Port and KRW 4.6 billion for the construction of a test bed for port automation at Gwangyang Port*. It also includes KRW 1 billion for dredging and facility maintenance at Gunjang Port. These new spending items total KRW 20.2 billion, driving up Port SOC outlays from KRW 1.498 trillion in 2021 to KRW 1.5182 trillion.


* A test best for port automation to be constructed from 2022 until 2026: a total of KRW 691.5 billion (KRW 345.7 billion and KRW 345.8 billion from the central and local governments, respectively) for four automated container berths


□ (National Fishing Port Designation) The budget also includes a KRW 5.6 billion* increase to the existing national fishing port designation program (from KRW 263.9 billion to KRW 269.5 billion) for three newly designated fishing ports as part of the Ministry’s efforts to ensure the safety of fishery workers and tourists and prevent disasters.


* Tongyeong Yokji Port (+ KRW 1.9 billion), Ulleung Jeodong Port (+ KRW 3.2 billion) and Wando Dangmok Port (+ KRW 500 million)


□ (Marine Tourism and Culture) The budget also includes a KRW 400 million increase to the existing Study on Marine Healing Resources to promote the culture of marine healing as well as KRW 200 million each for two feasibility studies for the construction of the National Marine and Fisheries Museum to promote marine culture and protect the marine industry and the construction of the Marine Leisure Safety Experience Center.


□ In order to seamlessly support the marine, fishing, and maritime sectors as well as those employed in them, MOF will set up detailed operating plans so that the budget can be executed as planned from the beginning of Fiscal Year 2022 (January 1, 2022) to ensure the prompt yet smooth operations of the FY 2022 programs.


○ In addition, MOF will improve budget execution by encouraging prompt budget spending through meetings to check the status of budget execution and strengthening its oversight of programs operated by local governments and the private sector to ensure the smooth flow of public funds to the ultimate end-users.