"K-Construction Needs Stronger Governance to Achieve $2 Trillion in Overseas Orders"

After Semiconductors and Automobiles, Cumulative Overseas Orders Surpass $1 Trillion Last Year
Strategic Keywords Chosen: "Advancement" and "Governance"

As the cumulative overseas construction orders by the domestic construction industry have surpassed $1 trillion (approximately 1,398.5 trillion won), there are calls for strengthened governance to reach the $2 trillion milestone.

According to the Korea Institute of Construction Industry (KIC), as of May 10, 2025, the cumulative overseas construction orders of the domestic construction sector have reached $1 trillion, making it the third industry after semiconductors and automobiles to achieve this record. Last year, the domestic construction industry surpassed the $1 trillion cumulative mark, 59 years after first entering the overseas market in 1965 with a project in Thailand.

The first overseas construction project was the Patani-Narathiwat Expressway construction in Thailand in 1965. This project covered 98 kilometers and had a total project cost of $5.4 million. At the time of the order, no expressways had yet been built in Korea, and it was the first such project attempted with domestic technology. Although the project recorded losses due to delays and additional construction costs, it holds symbolic significance as the first overseas construction project.

Since then, overseas order performance has experienced both increases and decreases. From 2006 onward, the period is defined as the heyday, leap forward, and transition period for overseas construction. The average annual overseas order amount between 2007 and 2015 was $56.6 billion, with a record high of $71.6 billion in 2010.

In 2016, overseas orders amounted to $28.1 billion, the lowest since 2006 ($16.5 billion). The average annual orders between 2016 and 2020 remained at $29.3 billion. Starting from 2015-2016, the market entered an adjustment phase, influenced by a combination of low oil prices, the domestic real estate market, and a conservative approach to overseas markets. However, from 2021 to 2024, the average annual overseas order amount increased to $33 billion, indicating a gradual recovery.

KIC has selected 'advancement' and 'governance' as strategic keywords for the era of $2 trillion in cumulative overseas construction orders. KIC stated, "The framework of Korea's overseas construction order strategy continues to advance in response to changing market environments, centered around the Overseas Construction Promotion Master Plan." The institute added, "The government is implementing support policies and regional entry strategies aimed at diversifying markets and products, and expanding investment development-type project orders."

Furthermore, KIC suggests that strengthening governance is necessary to ensure the advancement, consistency, sustainability, and effectiveness of ongoing strategies and support policies. KIC emphasized, "To prepare for the era of $2 trillion in cumulative overseas orders, it is essential to establish investment, financing, and guarantees for overseas infrastructure and energy/resource development projects; promote joint overseas investment and risk management by private companies; and build support for carbon neutrality and digital transformation in overseas projects." The institute also added, "It is necessary to consider establishing governance capable of policy development, serving as an information hub, and strengthening international cooperation networks."