Construction orders rise at fastest pace in 5 years last year

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Construction orders rise at fastest pace in 5 years last year

Construction orders clinched by Korean builders grew at the fastest pace in five years in 2020 on the back of an increase in overseas projects planned as economic stimulus measures, data showed Wednesday.
Local builders secured a combined 287 trillion won ($246.7 billion) worth of construction orders last year, up 12.2 percent from the previous year, according to the data compiled by Statistics Korea.
It marked the fastest on-year gain since 2015, when the value of such orders rose 12.9 percent.
The increase was attributable to countries' efforts to boost slumping economies with massive construction projects amid the pandemic, according to the statistics agency.
Korean builders clinched 29 trillion won worth of overseas orders last year, up 72.2 percent from a year earlier. Demand from Asia, the Middle East and America accounted for 87.4 percent of the total overseas orders.
Domestic orders rose 8 percent on-year to 258 trillion won, the data showed.
Meanwhile, the value of construction projects completed by local builders declined for the first time in 10 years last year due to the fallout of the Covid-19 pandemic.
Construction firms completed a combined 289 trillion won worth of construction projects last year, down 1.7 percent from the previous year, the data showed.
It marked the first on-year decline since 2010, when the corresponding reading fell 1.1 percent.
The fall came as major countries' border restrictions caused by the pandemic suspended or thwarted the completion of construction projects.
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