Construction Sector

An Expert's View about Building Products and Construction in South Korea

Posted on: 11 Dec 2011

In 2010, the Korean construction sector accounted for 6 per cent of GDP. There are 56,533 construction companies and 11,956 general contractors, 288 of which won overseas contracts worth US$491.5 billion in 81 countries.

Construction Sector in South Korea South Korea is the 12th largest economy in the world, has a population of 50 million and a predicted GDP growth of 4.5 per cent in 2011. The Korean construction industry is a mature market with recognised civil engineering companies. Market overview Engineering companies include Hyundai, Samsung, Daewoo and Daelim, working well in domestic and overseas markets. They have played an important role in developing the Korean economy since the 1960s and grew rapidly in the 1970s and 1980s. In 2010, the Korean construction sector accounted for 6 per cent of GDP. There are 56,533 construction companies and 11,956 general contractors, 288 of which won overseas contracts worth US$491.5 billion in 81 countries. It is common in Korea for a major construction company to be in control of all aspects of a design and build project, with roles of the construction process being fulfilled by ?in-house? teams. This includes aspects of project management including finance, timing, build and design etc. If you are not part of this team there are few opportunities. As a result building relationships is essential in Korea as the team ethos is encouraged before any development proceeds. Key opportunities Korea is primarily interested in foreign companies with skills in advanced engineering and in the sustainable construction, green building and design sectors. Areas such as quantity surveying, architectural design, consultancy, supervision/inspection and project management are easier to penetrate as UK companies? capabilities are generally better than Korean ones. The opportunities include: Collaboration on Overseas Projects Korean companies are keen to partner with foreign companies for overseas projects, especially in Europe. Once relationships develop there is a possibility this will be transferred to other markets including Korea. Sporting Events South Korea has hosted a number of major sporting events in the past 20 years and they are going to host the Pyeongchang Winter Olympic Games 2018. It should provide a number of opportunities for having UK expertise in stadium design, legacy planning and advanced engineering. Green Homes Seoul, the capital city, plans to create a million green homes and convert a million existing houses into green homes. This is a government-funded R&D programme to develop technologies for low-energy and environmentally friendly apartments. Daelim Construction and Engineering is leading the market as they introduced ?three-litre? house model apartments that consume significantly less energy than conventional ones by requiring only three litres of gas per square metre per year. These apartments are very popular due to their high energy efficiency, renewable energy and environment friendly spaces. Green and Sustainable Buildings Public and private interest in sustainable construction and building materials has risen in the Korean construction sector. There has been consensus that green management in buildings should be applied to the construction industry. The government will support Korean construction companies in making green management strategies to reduce green house gas emissions in their buildings, conducting energy efficiency improvement projects and receiving certification of eco- friendly buildings. Latest export opportunities ? Construction Latest export opportunities ? South Korea Getting into the market To compete in South Korea UK companies are recommended to have a capable local distributor, licensee or franchise partner who has an established network in the market and extensive market knowledge. A long-term perspective and a reliable partnership between supplier and their local partner is one of the key factors in achieving success. More about doing business in South Korea Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ? Jiyoung Lee, British Embassy Seoul. Tel: +82 (2) 3210 5629 or Email: Jiyoung.lee@fco.gov.uk Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events ? Construction Major Events Kyunghyang Housing Fair Date: 22 ? 26 Feb. 2012 www.khfair.com Useful links More about OMIS and other UKTI services for exporters
Posted: 11 December 2011

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