Approximately 1,000 government officials, representatives, chiefs of construction organizations and people from the Korean construction industry assembled at the Construction Hall in Nonhyeon-dong, Seoul, on June 25 to participate in a ceremony to observe the 2015 Construction Day anniversary event. This year’s anniversary event was held in a festive mood to not only celebrate the 50th anniversary of Korea’s entry into the global construction market, to but also to coincide with the industry's surpassing a combined $700 billion in overseas construction projects during that time.
The anniversary event was hosted and organized by the Ministry of Land, Infrastructure and Transport and the Federation of Construction Associations (FCA) under the theme “Korea’s Construction Force, Constructing the Happiness of the Future in the World.”
Construction Day falls on June 18 in celebration of the establishment of the Construction Ministry on June 18, 1962. The government has observed a ceremony to commemorate Construction Day every year since 1981. During the period 1984 to 2000, a biennial rally to promote construction took place instead.
The Construction Day anniversary event is designed not only to reward the construction industry and industry people who have contributed greatly to the development of the Korean economy through the establishment of the Korean economic foundation, improving of the balance of payments, and expanding jobs — but also to encourage the construction industry community, which is charged with an immense task of building a welfare society.
The nation observed this year’s Construction Day anniversary event after the industry surpassed a combined $700 billion in overseas construction projects since it expanded into he global arena 50 years ago. The latest Construction Day ceremony is a significant event that is designed to encourage the pride and morale of 2 million construction industry workers, who have contributed to the development of the nation and industry, and to suggest a vision of hope for the Korean construction industry.
During the anniversary event, 156 people were presented with diverse prizes, including government orders and MOLIT Minister’s prize. The anniversary event also coincided with side events, including a photo exhibition celebrating the 50th anniversary of the nation’s entry into the global market and an anniversary seminar on Korea’s overseas construction.
Looking back, the Korean overseas construction industry, now 50 years of age, made its debut in the global stage by winning a project in Thailand in 1965.
Most recently, Samsung C&T won the $680 million Westconnex, Australia Road Project on June. The feat of surpassing $700 billion in accumulative project values comes one-and-half years after Korean contractors reached $600 billion in accumulative overseas construction project values for the first time, a great achievement considering such unfavorable conditions around the world as low crude prices and political uncertainties in the Middle East.
Korea’s booming overseas construction industry in the Middle East has greatly contributed to overcoming such economic hardships as crisies caused by crude oil price spikes. Since the mid-2000s, the Korean overseas construction industry has enjoyed a surge in winning projects, playing a part in propping up the national economy. In particular, Korea chalked up a huge current account deficit during the 1997 Asian financial crisis, whereas the overseas construction industry logged a trade surplus. Since 1998, Korea’s current account has grown at an annual average of 5.1 percent while the construction industry saw its current account surge annual average of 23.9 percent.
Looking into the latest trends, the Korean overseas construction industry has witnessed accelerating accumulative project values. The industry’s performances are extraordinary under the current government, as it took only one and half years to go from $600 billion to $700 billion, the shortest amount of time to grow $100 billion in value. It took 27.5 years, 13 years, three years, two years, two years, and one-and-a-half years to top $100 billion, $200 billion, $300 billion, $400 billion, $500 billion and $600 billion, respectively.
By area, the Middle East still comes up strong, but the past two years’ efforts to diversify markets have begun to pay off. The market share of the North America and Pacific region rose from 1 percent to 7 percent, while that of the Europe and Africa increased from 4 percent to 8 percent. Asia saw its market share grow from 31 percent to 33 percent. In particular, Europe/Africa and Central and South America recorded record-high project values in 2014.
The Order of Industrial Service, Gold Tower, went to FCA Chairman Choi Sam-kyu, Odae Construction Co. CEO Bang Moo-cheon, and Kyungil Construction CEO Lee Jong-yeon. They have been credited with their contributions to the development of the construction industry for the period between past 30 years to 40 years. Hwankyung ENG CEO Cho Ki-ho was honored with the Order of Industrial Service, Silver Tower, while Gangneung Construction CEO Kim Jung-hee was presented with the Order of Industrial Service, Bronze Tower. Isae Industry CEO Lee Wan-soo received the Order of Industrial Service, Steel Tower, while Hyewonkaci Architects & Associates CEP Kim Yeon-tae was presented with the Order of Industrial Service, Tin Tower. Six people, including Yoo Dong-kyu, assistant vice president of Daewoo E&C, were honored with the Industrial Service Medal, while six people, including President Park Mong-yong of Hwanam Construction, received the Presidential Award. Seven people, including President Park Seok-mook of Gwangkun Engineering, were presented with the Prime Minister’s Award.
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