Korea's Mega Projects Need 84 Trillion Won for Power and Water

South Korea's ruling party estimates 84 trillion won ($57 billion) in power and water infrastructure costs through 2036, while the parliament committee that must fund it failed to pass the budget bill. The gap between estimate and approval defines the story.

The Democratic Party's Special Committee on Mega Growth released the figures on the 13th at a budget briefing at the National Assembly. The numbers came from a government report on medium- and long-term infrastructure investment. Six ministries attended, including Trade, Industry and Energy; Science and ICT; Land, Infrastructure and Transport; Climate, Energy and Environment; and National Defense.

What does the 84 trillion won buy?

The report breaks down as follows:

• 79 trillion won for power infrastructure
• 5 trillion won for water supply
• Roughly 58 trillion won of the total from state coffers
• About 2 trillion won already in next year's budget: 1.5 trillion won for power, 370 billion won for water

Rep. Jang Chul-min, the ruling party's floor spokesman on the committee, said power dominates mega-project spending both next year and long term. "Power forms the foundation of these projects, from physical artificial intelligence to data centers," he said. The claim is broad. The report does not itemize which projects consume which share.

The committee was also briefed on "demand-driven substations" (facilities converting transmission voltage, built in advance where large-scale demand is confirmed). The briefing did not state how many substations are planned or what they would cost.

Why did the budget bill fail?

The same day, the National Assembly's Trade, Industry, Energy, SMEs and Startups Committee held a full session and failed to pass next year's government budget bill. The committee had planned to act on budgets for the industry ministry, the Ministry of SMEs and Startups and the Ministry of Intellectual Property. It recessed without agreement, approving only peripheral items such as a consent motion on trade insurance contract ceilings.

A budget subcommittee had met on the 11th and 12th but withheld approval. Two items blocked progress: an integrated fiscal support program for the southwestern semiconductor cluster and a future response fund.

The parties sit 7.5 trillion won apart on the cluster. The People Power Party wants the entire 1.5 trillion won allocated to the chip cluster struck, arguing the calculations are unclear and the contribution was set before verification. The Democratic Party wants the figure raised by 4.5 trillion won to 6 trillion won. Neither side has moved.

What happens next?

The committee says it will hold further talks. Observers give them little chance. "No schedule has been set yet for a budget subcommittee to continue negotiations, and it looks difficult for the People Power Party to agree on items such as the future response fund," a Democratic Party official said. The official added: "There is a high likelihood it will be referred directly to the Special Committee on Budget and Accounts."

Article 84 of the National Assembly Act provides the mechanism. It allows the Assembly speaker to refer a budget bill straight to the budget committee if a standing committee fails to complete its review within the set period.

The unresolved question is fiscal, not technical. The 84 trillion won estimate assumes sustained state commitment across a decade. With the parties 7.5 trillion won apart on a single line item, and committee review stalled, that assumption remains untested.