Expert and Construction Industry Meeting to Overcome the Construction Sector Crisis
Comprehensive Measures to Revitalize the Sluggish Regional Construction Market
Surging unsold housing inventory, post-completion unsold units at a 10-year high! Is there no way to save the construction industry, which is on the brink of collapse?
Busan City (Mayor Park Hyungjoon) announced on the 20th that it held the "Construction Industry Crisis Overcoming Experts - Construction Industry Meeting" at City Hall at 2 p.m. on the 18th.
The meeting was chaired by the Director General of Urban Innovation and Balance of Busan City and attended by experts from the Korea Institute of Construction Industry, as well as construction and finance specialists, and representatives from general, specialized, and construction machinery sectors, who shared a variety of opinions.
This meeting was held as a follow-up to the regional construction market revitalization meeting in February, with the aim of listening to voices from construction sites and developing comprehensive measures to reinvigorate the stagnant local construction market.
As of February this year, construction orders nationwide amounted to 11.3 trillion won, marking the lowest February figure in the past six years and reflecting sluggish performance. As a result, construction volume has decreased, and the number of construction industry employees across the country has declined for 10 consecutive months since May of last year.
In the case of housing in the Busan area, ▲ "unsold units" have surged by 186% compared to the average of the past five years, and ▲ "post-completion unsold units" have increased by 215% compared to the previous five years, reaching the highest level in the past decade.
Furthermore, due to political and external uncertainties, it is expected that ongoing construction projects will also shrink, accelerating the pace of the construction market downturn.
At the meeting, the city listened to the opinions of experts and the construction industry and discussed ▲ revitalizing the construction industry by expanding public and private construction project volumes, ▲ increasing the participation rate of local subcontractors, and ▲ financial support measures for the construction sector.
Industry representatives emphasized that while increasing construction volume is important, ▲ adjusting construction costs to reflect reality and ▲ expanding volume with a focus on small-scale construction projects and maintenance construction are also necessary.
In addition, subcontractors pointed out that most construction projects must proceed on schedule, and therefore, early project bidding and prompt execution should be pursued in consideration of the characteristics of construction work.
They also stressed that the burden of unpaid construction costs due to unsold units is increasing, and called for institutional measures to address this issue.
Experts also shared their views on these matters.
They emphasized the need for urban restructuring in line with Busan's vision as a global hub city, as well as the promotion of large-scale construction projects through public-private cooperation.
They also noted that while expediting building permit procedures is important, there are many projects that have yet to break ground, and thus support for project commencement is needed.
Lim Kyungmo, Director General of Urban Innovation and Balance at Busan City, stated, "This meeting was urgently convened to overcome the crisis in the construction industry and to reflect on the role of Busan City," adding, "We plan to incorporate feedback from construction sites and experts into future measures, and if necessary, will hold meetings between the city, experts, and the construction industry on an ongoing basis."
Busan City is holding the "Construction Industry Crisis Overcoming Experts - Construction Industry Meeting."
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