LH to Issue New Construction and Service Contracts Worth 10 Trillion Won This Year to Support Construction Market Recovery

[Asia Economy Reporter Cha Wanyong] Korea Land and Housing Corporation (LH) announced on the 15th that it will newly order construction and service projects worth 10 trillion won this year. The 10 trillion won scale of orders is the largest among all public institutions. This surpasses the 9.7 trillion won in 2021 and the 9.9 trillion won last year. The total number of planned orders is 1,066.

Considering the construction market downturn due to rising loan interest rates, soaring construction costs, and instability in real estate project financing (PF), LH plans to continue its support. Of the 10 trillion won, 4.4 trillion won (44%) will be ordered in the first half of the year to enhance liquidity in the construction industry. This is the largest scale in the past five years.

LH headquarters building exterior. [Photo by LH]

By type, 9 trillion won will be allocated to construction and 1 trillion won to engineering. The construction sector includes ▲Comprehensive Evaluation Bidding System 4.5 trillion won (48 cases) ▲Simplified Comprehensive Evaluation System 1.5 trillion won (80 cases) ▲Qualification Evaluation 1.4 trillion won (473 cases). The engineering sector includes ▲Comprehensive Evaluation 600 billion won (118 cases) ▲Qualification Evaluation 200 billion won (211 cases).

By construction type, projects with significant economic ripple effects such as job creation, including architecture and civil engineering, account for about 67% of the total order amount. ▲Architectural construction 4.6 trillion won (122 cases) ▲Civil engineering construction 2.1 trillion won (48 cases) ▲Electrical, communication, and fire-fighting construction 1.3 trillion won (272 cases) ▲Landscaping construction 800 billion won (101 cases) ▲Other construction 300 billion won (71 cases). In the service sector, technical services such as design amount to 800 billion won (323 cases), and general services amount to 100 billion won (129 cases).

LH plans to carry out the ordering schedule as planned this year to actively participate in economic recovery. It will also closely monitor the ordering schedule in the second half of the year, when large-scale construction orders are concentrated, and support participation by many companies.

LH President Lee Hanjun emphasized, "We will place orders for construction and engineering projects in a timely manner to ensure the smooth implementation of policy projects such as urban development and housing supply."

Detailed information on LH orders can be checked on the LH website's electronic procurement system starting from the 17th.