LH to Order 15.3 Trillion Won in Second Half of This Year... Aiming to Revitalize Construction Market

This Year's Order Volume Rises from 17.1 Trillion to 18.2 Trillion
"3rd New Town Construction to Proceed Without Delay"

Korea Land and Housing Corporation (LH) announced on the 17th that it has set the scale of construction and service orders for the second half of this year at 15.3 trillion KRW to revitalize the private construction market.

LH increased the scale of construction and service orders this year from 17.1 trillion KRW to 18.2 trillion KRW. This is more than 180% increase compared to the annual average order scale (10 trillion KRW).

Second half of this year construction and service order plans by type for Korea Land and Housing Corporation (LH). [Data provided by Korea Land and Housing Corporation (LH)]

It will place orders worth 15.3 trillion KRW in the second half of this year alone. Among this, 9.4 trillion KRW is expected to be invested in the public housing construction sector. The purpose is to activate housing supply through this.

In particular, this plan includes construction work for 5,000 housing units in the 3rd new towns such as Namyangju Wangsuk, Goyang Changneung, and Bucheon Daejang. The construction consists of a total of 9 projects worth 1.5 trillion KRW. LH plans to proceed smoothly with the groundbreaking of the 3rd new towns through this.

The order plan by type is divided into 14.7 trillion KRW for construction and 600 billion KRW for services. The main construction sectors are ▲Comprehensive Evaluation Bidding System 10.2 trillion KRW (77 projects) ▲Simplified Comprehensive Evaluation System 1.3 trillion KRW (65 projects) ▲Qualification Evaluation System 2.2 trillion KRW (504 projects) ▲Turnkey, Construction Management (CM), and others 1 trillion KRW (12 projects). The Comprehensive Evaluation Bidding System is a system that determines the successful bidder by comprehensively evaluating construction performance capability and bid amount for construction projects with an estimated price of 30 billion KRW or more. The Simplified Comprehensive Evaluation System is a simplified version of the comprehensive evaluation bidding system conducted for construction projects with an estimated price between 10 billion KRW and less than 30 billion KRW.

The construction sector accounts for about 82% of the total order amount. Specifically, it includes ▲Building construction 10.6 trillion KRW (222 projects) ▲Civil engineering construction 1.9 trillion KRW (49 projects) ▲Electrical, communication, and fire protection construction 1.4 trillion KRW (279 projects) ▲Landscaping construction 300 billion KRW (30 projects) ▲Other construction 500 billion KRW (78 projects).

The service sector includes ▲Comprehensive evaluation 400 billion KRW (57 projects) ▲Qualification evaluation 100 billion KRW (243 projects) ▲Others 100 billion KRW (53 projects). The Qualification Evaluation System is a system that determines the successful bidder by evaluating contract performance capability in order of the lowest bid price (above the bid floor rate) among construction projects with an estimated price below 10 billion KRW.

Among the entire service sector, technical services such as design and supervision amount to 400 billion KRW (243 projects). In addition, general services amount to 200 billion KRW (110 projects), with technical services accounting for about 66% of the service orders in the second half of the year.

LH manages order performance monthly and quarterly. In particular, it plans to intensively manage the order schedule for public housing construction to actively support policies for expanding housing supply.

Lee Han-jun, President of LH, said, "Through the adjusted order plan this time, we will smoothly carry out the groundbreaking of 50,000 public housing units including 10,000 units in the 3rd new towns within this year," and added, "LH will take the lead in stabilizing the real estate market quickly."

Detailed information on this order plan can be found on the LH website's electronic procurement system.