Overseas Construction
Much attention is being paid to whether or not this year’s total value of orders received by Korean builders will be able to exceed US$70 billion for the first time in three years. According to the government, the outlook is positive in that the total value tends to increase more in the latter half than in the first. Also, a series of major construction projects are scheduled until the end of this year in the Middle East and Asia.
The government is considering that the water management project in Thailand, worth six trillion won (US$5.6 billion) in total, is the key to reaching the goal. It is going to make full-scale efforts to help Korean companies win the final deal.
According to the Ministry of Land, Infrastructure and Transport and the International Constructors Association of Korea (ICAK), the total value for this year reached US$48.3 billion as of October 25, which surpasses last year’s record for the same period by a margin of US$5.5 billion.
Though the amount posted in the Middle East decreased a bit from a year earlier, those in the Asia-Pacific and North American markets showed some substantial increase to lead year-on-year growth. Specifically, the total value stood at US$20.1 billion, which is lower than US$24 billion for the same period last year. However, the amount of orders from Asian countries increased from US$11.7 billion to US$20.2 billion, and those from the Pacific and North American regions skyrocketed from US$0.2 billion to US$6.1 billion.
Still, it is not yet certain whether or not the goal of US$70 billion will be met smoothly. This is because the final contract for the water management project in Thailand, which is the largest one in the second half of this year, has been postponed to December, and may be put off again to next year.