Hard Time
It has been found that South Korean construction companies are having a hard time in overseas construction markets. The values of the orders they have are on the decline in Latin American markets as well as the Middle East.
According to the International Construction Information Service provided by the International Contractors Association of Korea (ICAK), the total value of the overseas construction orders South Korean builders obtained between the beginning of this year and June 14 added up to US$14.13837 billion, down 40% from a year earlier. This amount is a four-year low.
By region, the total value dropped by 37% in the Middle East from US$6,848.93 million to US$4,291.87 million and plummeted by 68% in Latin America from US$4,154.41 million to US$1,313.8 million. Even a 302% increase in the Pacific and North America (from US$337.98 million to US$1,361.04 million) and a 112% increase in Africa (from US$239.77 million to US$510.5 million) were not enough to offset the decline.
This can be attributed to a decrease in government spending in oil-producing countries suffering from low oil prices, the slowdown of the global economy, an interest rate hike in the United States, etc. The ICAK explained that it is likely to take some time for oil-producing countries to place new orders although the international oil prices are showing some signs of a rebound these days.