Prime Minister Chung Hong-won joins other dignitaries in toasting in a 

New Year’s gathering for those in the construction industry at Lotte Hotel in 

downtown Seoul on Jan. 7. They included  Minister Suh Seong-hwan of the 

Ministry of Land, Infrastructure and Transport, Chairman Choi Sam-kyu of 

Federation of Construction Associations and also the Construction Association 

of Korea (CAK),  Reps. Shin Hak-yong, Lee Yoon-sok, Lim Nae-hyun, President 

Lee Jae-young of Korea Landand Housing President Lee Jae-young of Korea 

Land and Housing Corp. and President Kim Kwang-jae of the Korea Rail 

Network Authority. (photo: CAK)

The Federation of Construction Associations held a New Year's reception for the construction industry on Jan. 7 at Lotte Hotel in downtown Seoul with more than 1,000 people from the government, legislators, and construction executives attending led by Prime Minister Chung Hong-won, Minister Suh Seong-hwan of the Ministry of Land, Infrastructure and Transport. Also among the participants were Reps. Shin Hak-yong, Lee Yoon-sok, Lim Nae-hyun, President Lee Jae-young of Korea Landand Housing President Lee Jae-young of Korea Land and Housing Corp. and President Kim Kwang-jae of the Korea Rail Network Authority, among others.

Chairman Choi Sam-kyu of Federation of Construction Associations and also the Construction Association of Korea (CAK) has a big job ahead this year putting its members’ businesses back on track after 24 construction firms went out of business last year. 

Minister Suh Seong-hwan of the Ministry of Land, Infrastructure gives a 

speech at a New Year's reception for the construction industry at Lotte 

Hotel in downtown Seoul on Jan. 7.

In his New Year’s address, the chairman said the overseas construction industry recorded a memorable year by securing more than $600 billion worth of various projects overseas in all sectors with the cooperation of the new Park Geun-hye government in fighting the adverse economic conditions at home and abroad.

“Again this year, the economic conditions don’t look too bright for the domestic construction industry like it has been for the past several years. We have to continue to reform and change to create new challenges and momentum for growth,” he said, adding that excessive competition among Korean construction firms should be avoided at any cost both at home and abroad. He said, “We need to develop new technologies and management skills to keep growing, as that will help us find ways to secure new projects, and not rely only on government construction.”

A third-generation construction man, Choi met with leaders in the industry, academics, government officials, and key legislators to find ways to get the industry back on track this year.

He concluded in saying that securing enough work is the key to the problems facing the industry this year along with the government’s support in providing work in such areas as repairing old SOC structures around the country such as highways, bridges, and public parks that are close to people’s everyday lives.

The CAK chairman will also have to put in long hours repairing the industry’s public image, tarnished somewhat by media reports of frequent misconduct on the part of the construction firms such as bribery and for underpaying their workers. “Many construction workers have been working abroad in various countries as if they are working for the national economy, so we would like to give the right impression to the public,” the chairman said.

He joined his relative’s construction after firm quitting Choongang University where he was majoring in pharmacology in his junior year in order to help is ailing father. His father wanted him to work for any other industry than the construction industry to make his life easy. He had to support his family when his father folded his businesses, which included a construction firm, due to financial difficulty.

He left his relative’s firm and set out on his own by taking over a construction firm in 1971 and he led the company as the CEO ever since renaming the company Ewha Kongyong specializing in the construction of industrial plants. In 1994, the company went public, a rarity in the construction industry back then.

The CAK was formed as a statutory organization under Article 50 of the Framework Act on the Construction Industry.

The main purposes of its establishment are to maintain the prestige of construction contractors, to promote mutual cooperation amongst contractors, to protect their rights and interests, and to strive for the improvement of construction-related legislation, construction economy policy and construction technology, thus contributing towards the sound progress and development of the nation’s construction industry.