The Federation of Construction Association held its New Year ceremony at the Hotel Lotte on Jan. 6 in downtown Seoul with some 1,000 dignitaries and the people from the construction industry and related industries in attendance. Notable guests were Prime Minister Chung Hong-won, a number of legislators including Reps. Chung Seong-ho, Kim Tae-won, Lee Yoon-seok, Kim Hee-kook, President Lee Jae-young of the Korea Land and Housing Corp., and President Kang Young-il of the Korea Rail Network Authority. Also present were President Chung Soo-hyun of Hyundai E&C, President Choi Chi-joon of Samsung E&C, President Park Young-shik of Daewoo E&C, President Hwang Tae-hyun of POSCO E&C, President Cho Ki-haeng of SK E&C, President Lim Byung-yong of GS E&C, President Lee Keun-po of Hanwha E&C, President Yang Hi-sun of Doosan E&C, President Kim Dong-soo of Daelim Industrial, and President Kim Chi-hyun of Lotte E&C, among others.
Prime Minister Chung said the overseas construction industry last year clinched a total of $66 [1]billion worth of construction projects, the second largest ever, despite the uneasy political situation in the Middle East and a slowing global economy. The figure will help surpass the $700 billion level this year. As of the end of last year, the total accumulated figures recorded $676.1 billion.
This is the year of goat by the lunar calendar, and the prime minister hopes that the construction industry will be filled with hope and happiness, as the goat is a symbol for prosperity.
The government is ready to back the industry with tailor-made financial support, the export of a Korean-developed new city model, and superb construction technologies to further expand the overseas construction market for Korean builders, the prime minister said. The prime minister added that the entire nation should send a huge round of applause to the overseas construction industry for its astounding record last year, which is hard at work around the world.
The government will do its best to revitalize the economy this year.
The government will continue to work on its Three-Year Economic Development Plan to reform the economic structure for economic revitalization this year so that people feel the economic vitality first-hand. The government hopes the construction industry plays a key role in spurring economic growth and creates jobs, the prime minister went on to say.
The government will expand investment in social overhead capital projects, including highways and railroads, and execute its budget early for an early recovery in economic growth this year.
The construction industry is about to take off this year, especially with the anniversary of overseas operations for the industry having reached half a century and capturing $700 billion worth of projects.
The construction industry is at a crossroads of continued growth or decline this year, with the business environment for the industry both at home and abroad not looking bright. Investment in housing construction is being reduced at home, while the overseas construction market has also been regressing due to low oil prices and uncertainty in the global financial market.
“We should explore new construction markets in the world in the areas of high-tech and environmentally friendly construction projects that are being opened up around the world, getting away from the dependence on projects handed out by the government in such areas as highway, plant and housing construction,” Choi said. “We also have to work to recover public trust by cleaning up various illegal and irrational deals in the construction industry.”
