At Least 70% of Subcontracts to Local Companies Required
At Least 85% of Local Manpower and Materials Must Be Used
On October 29 at 2:00 p.m., Daegu City held the "2025 Non-Local Construction Companies Win-Win Cooperation Meeting" in the Main Conference Room 1 at the Sanggyeok Government Complex, presided over by Deputy Mayor for Economic Affairs Hong Sungju. The meeting focused on discussing cooperation measures to expand contract awards to local companies and prevent the outflow of local capital.
This meeting was convened in response to growing concerns that the recent downturn in the construction market is directly leading to deteriorating management conditions for local specialized construction companies, thereby increasing the risk of local capital outflow.
The meeting was attended by representatives from 16 major construction companies, including Hyundai Engineering & Construction, Daewoo Engineering & Construction, DL E&C, and GS Engineering & Construction, all of which are currently undertaking private or public projects worth over 70 billion won. In addition, heads of relevant departments from Daegu City, district and county urban planning directors, and construction-related associations-about 40 participants in total-gathered to explore practical cooperation strategies to overcome the crisis facing the local construction industry.
Daegu City requested that non-local construction firms register outstanding local companies as partner firms, expand local subcontractor participation in bidding, use local subcontractors for at least 70% of projects, and utilize local manpower, materials, and equipment for at least 85% of work. The city emphasized that extraordinary efforts are needed for mutual cooperation with local companies and meaningful contributions to the local community.
Furthermore, Daegu City urged local specialized construction companies to focus on internal improvements and strengthening their competitiveness so that they can meet the registration standards required by large construction companies, such as quality and safety management and productivity control.
The prevention of serious industrial accidents was also a key agenda item. Daegu City called for the establishment of safety and health management systems by company executives, compliance with obligations to improve hazardous and dangerous factors, and reinforced responsibility of both contractors and subcontractors for the safety of subcontracted workers to ensure safe construction sites free of major accidents.
Hong Sungju, Deputy Mayor for Economic Affairs of Daegu City, stated, "The construction industry is a core sector with the greatest ripple effect on the local economy," and emphasized, "To overcome the crisis in the construction sector, it is essential to create synergy through win-win cooperation and co-prosperity, combining the technological capabilities of non-local firms with the competitiveness of local companies." He added, "Construction is a high-risk sector where even minor negligence can lead to major accidents, so strengthening on-site inspections to prevent serious accidents is crucial."
Starting with this meeting, Daegu City plans to continuously provide platforms for communication, solidify the cooperation system between non-local major construction companies and local specialized construction firms, and develop a variety of practical support measures to revitalize the local construction market.
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