LH to Issue New Construction and Service Contracts Worth 8.2 Trillion KRW in Second Half of the Year

Construction worth 7.7 trillion KRW, service contracts worth 500 billion KRW
Full-scale development of 6 sites in 3rd New Town begins

Korea Land and Housing Corporation (LH) announced on the 19th that it will newly order construction and service projects worth a total of 8.2 trillion KRW in the second half of the year. This is an increase of 700 billion KRW compared to the second half of last year.

LH explained that considering the '2023 Second Half Economic Policy Direction' announced by the government on the 4th and the ongoing concerns about the construction industry downturn, it finalized the second half ordering plan two months earlier than last year to ensure the smooth execution of the annual investment plan.

By type, the construction sector accounts for 7.7 trillion KRW and services for 500 billion KRW. The construction sector includes ▲Comprehensive Evaluation Bidding System 3.6 trillion KRW (32 cases) ▲Simplified Comprehensive Evaluation System 1.3 trillion KRW (65 cases) ▲CM (Construction Management with Contractor Responsibility), Turnkey, etc. 2 trillion KRW (14 cases). The service sector includes ▲Comprehensive Evaluation 300 billion KRW (72 cases) ▲Qualification Evaluation 100 billion KRW (127 cases), with the service ordering plan increased by 300 billion KRW compared to the plan at the beginning of the year.

Looking at the second half ordering plan by construction type, building and civil engineering works, which have significant economic ripple effects, account for about 76% of the total order amount.

Specifically, ▲Building construction 3.8 trillion KRW (82 cases) ▲Civil engineering construction 2.5 trillion KRW (26 cases) ▲Electrical, communication, and fire protection construction 900 billion KRW (189 cases) ▲Landscaping construction 400 billion KRW (63 cases) ▲Other construction 100 billion KRW (34 cases). In the service sector, technical services such as design amount to 400 billion KRW (174 cases), and general services amount to 100 billion KRW (70 cases).

In particular, in July, the apartment construction project in Incheon Gyeyang will be ordered for the first time in the 3rd New Town development. The order targets are Incheon Gyeyang A2BL and A3BL, complexes where pre-subscription has been conducted.

LH plans to order land development projects worth a total of about 600 billion KRW in six 3rd New Town sites (Goyang Changneung, Namyangju Wangsuk, Namyangju Wangsuk 2, Bucheon Daejang, Incheon Gyeyang 2nd district, Hanam Gyosan 3rd district) in the second half of the year.

As of the end of June, LH has completed ordering for seven districts in six 3rd New Town sites including Namyangju Wangsuk 1st and 3rd districts and Incheon Gyeyang 1st district, and has started construction in three of these sites.

LH plans to actively participate in economic recovery by executing the announced order volume as planned.

Lee Han-jun, President of LH, said, “We will place orders for construction and services in a timely manner to smoothly carry out policy projects such as urban development and housing supply. In addition, we will do our best to contribute to revitalizing the construction economy by achieving investment goals, including activating advance payments.”