[Sponsored Report] Korean builders’ dramatic ascension

Since 47 years ago when the first construction company in Korea entered the global market, the orders the industry received from the market has exceeded $500 billion. This is a remarkable result since Hyundai E&C first received the Thailand high way construction project as Korea’s first overseas business in 1965. The industry people say it is a record that Korea as developed into one of world’s top seven construction countries in such a short time. What is the secret behind this success? It’s the status of Korean companies that has risen with sound construction results over time.

Of the 10 orders from Saudi Arabia, five were given to Saudi Arabian companies and 2.5 orders to Korean companies, second only to the Saudis. This means that the status of Korean builders has been recognized - since Korean builders are known to be high-tech and reliable, they are able to win at least 20% of the entire order.

The overseas construction order for Korean companies in the first quarter was only $8.2 billion, 40 percent less compared to last year, due in part to the financial crises in America and Europe haven’t been resolved and the competition between global construction companies is quite fierce. Despite this condition, the large construction companies in Korea are receiving substantial number of orders. As of end of May, Hanwha E&C won an Iraq residential construction project, and in just 10 days large construction companies received $9.7 billion worth construction projects, inspiring hopeful feelings of reaching the goal of $70 billion this year. According to the International Contractors Association of Korea and the construction industry on June 26, the Korean construction companies received orders for six projects worth $9.66 billion from June 14. These projects are known to be in the contract negotiating stage after the bid.Large-scale construction companies said, “Due to contract delays there was a drought in construction orders which led to expectations that it would be hard to meet the first half order goal but now we can get rid of these worries. Since the forecast for the second half contract and orders is good, we are hoping to exceed the last year’s record.”

By Lee Ji-hyun [concordia@joongang.co.kr]