Chungnam Supports Local Companies' Entry into Large-Scale Construction Projects

Chungnam Province supports the participation of local companies in large-scale construction projects within the region.

According to the province on the 20th, there are a total of 155 construction projects with a construction cost of 30 billion KRW or more being carried out locally this year, with a total construction cost of 13.2773 trillion KRW.

By type of work, there are 112 apartment complex projects worth 8.3118 trillion KRW, 10 urban industrial complex development projects worth 501.4 billion KRW, 9 plant facility projects worth 1.8785 trillion KRW, and 24 other civil engineering and architectural projects worth 2.5854 trillion KRW.

Among these, the contract amount awarded to local companies so far is 324.8 billion KRW, accounting for only 2.4% of the total contract amount. Additionally, the local subcontract amount is 505.6 billion KRW, which is about 17.6% of the total subcontract amount.

Accordingly, the province plans to manage the status of local company contracts for each project and promote support policies to expand local companies’ participation in subcontracting, aiming to raise the local companies’ subcontract participation rate to 35% this year.

As the first in the nation, the province will strengthen the qualification criteria for the “Chungnam Trusted Construction Company,” a local excellent company certified by the governor, and provide benefits such as increasing the floor area ratio based on the participation rate of local companies in each apartment construction project to boost the contract rate of local construction companies.

In addition, the province will prepare support measures such as reducing acquisition tax for projects involving local companies to facilitate win-win cooperation with large construction companies, which are the main executors of large-scale construction projects.

Kim Taek-jung, head of the Construction Policy Division of the province, said, “Competition for orders in the large-scale private construction market is based on trust and cooperation, making it virtually impossible for inexperienced local companies to enter the market. We will do our best to provide opportunities for local companies to take their first step in large-scale construction projects for the growth of the local construction industry.”