[Post-Impeachment] Broken 'One Team Korea' Faces Crisis in Overseas Construction Orders... $40 Billion Target Difficult to Achieve

Decline in Expectations for Substantial Government Support Amid Impeachment Crisis
Ministries and Industry "Striving to Prevent Disruptions in Overseas Orders"
Red Flag Raised for $40 Billion Overseas Construction Orders This Year

Following the passage of the impeachment motion against President Yoon Suk-yeol, the normal activities of 'One Team Korea,' the joint public-private support group for overseas construction orders, can no longer be expected. The government plans to minimize the impact of political instability, and construction companies focusing on overseas orders have also prepared thoroughly in the wake of the emergency martial law. However, amid the impeachment and the ensuing presidential election campaign, industry concerns are growing over whether the government’s practical support will be realized.

Impeachment Just Before Czech Nuclear Power Plant Order

According to related industries on the 15th, the construction project for the Dukovany Nuclear Power Plant in the Czech Republic is scheduled to finalize the main contract in March next year. The order will be confirmed amid the transition to the presidential election campaign following the impeachment. This $17.3 billion project has 'Team Korea,' led by Korea Hydro & Nuclear Power, selected as the preferred negotiator.

As concerns about the contract after the declaration of martial law grew, the Ministry of Trade, Industry and Energy, the responsible department, stated its commitment to minimizing the uncertainty caused by political instability and its impact on overall exports. The Czech authorities also assured in a media interview that there would be no disruption to the contract or project schedule with Korea.

The construction industry is preparing its own countermeasures after the impeachment while closely monitoring the outcome of this project’s order. They believe it could serve as a gauge for the future activities of One Team Korea. A construction company official said, "On the day martial law was declared, construction companies held emergency meetings to review future scenarios, explored the possibility of impeachment this week, and discussed the potential aftermath. We plan to make efforts to ensure that overseas construction orders are not disrupted due to political instability after the impeachment."

The last project won by One Team Korea was the 'Nakas-Ba?ak?ehir Highway Investment Project' in T?rkiye, secured last October by a consortium including the Korea Overseas Infrastructure & Urban Development Corporation (KIND), Korea Expressway Corporation, and Samsung C&T. One Team Korea was formed when the government launched the 'Overseas Construction Order Support Group' in 2022, involving most central government departments, to achieve an annual overseas construction order target of $50 billion.

Uncertain Achievement of This Year’s Overseas Order Target

Political risks arising from recent martial law and other issues are increasing uncertainty, and there are concerns that prolonged instability could weaken competitiveness. A construction company official said, "This is linked to national creditworthiness, so the longer the political turmoil after impeachment continues, the worse it is. Especially the exchange rate is beyond control, and raw material prices could rise further, so we are watching closely."

The government’s overseas construction order target set at the beginning of the year is also expected to be difficult to achieve. According to the Korea Construction Association, the cumulative overseas construction orders from January to November this year amounted to $32.69353 billion. This marks the fifth consecutive year since 2020 that overseas construction orders have exceeded $30 billion annually, but achieving this year’s target of $40 billion has become unlikely.

A Ministry of Land, Infrastructure and Transport official said, "The target was raised from the previous $30 billion to $40 billion this year with the Czech nuclear power plant order in mind. Since the nuclear power plant order is expected to materialize next year, it is highly likely that the target for next year will be set higher." He added, "We are closely monitoring domestic and international variables while keeping track of trends in the construction industry."