Won Hee-ryong "Securing Mobility for Overseas Construction Order Support Team... Considering Open Platform"

Focus on Package Orders in Construction, Defense, and Digital Sectors
Overseas Construction Orders Achieve $30 Billion for 3 Consecutive Years

Minister of Land, Infrastructure and Transport Won Hee-ryong is delivering a welcoming speech at the launch ceremony and the 1st meeting of the Overseas Construction Contract Support Group held on the 28th at the President Hotel in Jung-gu, Seoul. / Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Noh Kyung-jo] "The overseas order target for next year is set at 35 billion dollars. The Overseas Construction Order Support Group will be operated with agility, focusing on practical projects."

On the morning of the 28th, Minister of Land, Infrastructure and Transport Won Hee-ryong met with reporters after the launch ceremony of the Overseas Construction Order Support Group at the President Hotel in Jung-gu, Seoul, and stated, "We are considering making the support group an open platform."

The support group is a consultative body led by the Minister of Land, Infrastructure and Transport, involving related ministries, affiliated organizations, and the industry. Its role is to consolidate capabilities and establish and implement policies so that South Korea can achieve annual overseas construction orders of 50 billion dollars by 2027 and rise to become the 4th largest country in the global construction market. A total of 47 institutions and companies attended the launch ceremony.

Minister Won emphasized the agility of the support group. The strategy is to operate by project, similar to the 'Saudi One Team Korea' that departed for Saudi Arabia last month on the 4th. When the support group selects key projects, it plans to form a One Team Korea to provide full support in business discovery, information provision, complaint resolution, diplomacy, and finance.

Project discovery will focus on package orders encompassing infrastructure and content. It will cover not only construction but also 5th generation (5G) mobile communications, drone and robot smart logistics, and renewable energy.

Minister Won said, "South Korea is one of the few countries that can secure overseas projects as a package including construction, defense, energy, and digital sectors," adding, "Through the support group, we will consolidate our strengths and export the entire industry overseas together, so that companies can showcase their technological prowess globally and the national economy can grow."

He continued, "There are remarks that only companies (people) included in the support group have something special, but that is not the case," adding, "We need to consider openness."

He expressed satisfaction with this year's overseas construction order performance. According to the Overseas Construction Association, as of the 27th of this month, the scale of overseas construction orders reached 30.97 billion dollars, exceeding 30 billion dollars for three consecutive years. This is a 1.3% increase compared to last year (30.58 billion dollars). By region, the order amounts were ▲Asia 12.2 billion dollars (39%) ▲Middle East 9 billion dollars (29%) ▲North America & Pacific 4.5 billion dollars (15%) ▲Europe 3.4 billion dollars (11%) in descending order.

Next year, news of overseas construction orders is expected from the beginning of the year. Park Sun-ho, president of the Overseas Construction Association, said, "Orders worth about 10 billion dollars have been virtually confirmed but the contracts have been deferred to next year." These include Saudi petrochemicals (4 to 5 billion dollars), United Arab Emirates (UAE) gas field (2 billion dollars), and Vietnam real estate (700 million dollars).

The support group plans to establish regional entry strategies, focusing on the Middle East and Asia as the two main markets, and Latin America, Europe, the United States, Australia, and high-risk countries as three new markets with opportunities.

Minister Won said, "Our companies cannot announce it first, but comprehensive results are ripening regarding Saudi Neom City," adding, "Through the support group, companies will showcase their technological capabilities globally, and we will do our best to ensure the national economy grows."