DAEJEON < invest Korea

According to Yonhap News,

The recent price hike in raw materials and the sluggish real estate market are weighing down on local construction companies in Daejeon city.

It is not easy for them to win public orders, since those worth over KRW 10 billion fall into a nationwide competition, not to mention private orders because local players have low popularity compared to major brands. Things have gone from bad to worse, as the base rate has raised since last year.

According to the findings from Daejeon on July 19, the numbers of general construction companies and specialized construction companies based in the city as of March this year were 530 and 1,239 respectively.

The combined orders they made, however, was just a mere 65.8%.

Daejeon's local government, therefore, recently drew up regulatory frameworks to reinvigorate its local construction business.

Daejeon Metropolitan Council said that Congressman Song In-seok proposed an amended bill of the ordinance on promotion of revitalization in local construction business in Daejeon last November.

The amended ordinance states that companies carrying out construction related projects in Daejeon are recommended to summit a regional mutual-growth plan to Daejeon Mayor.

By doing so, the amended ordinance is expected to help local construction companies have more joint projects with their bigger rivals in cooperation and, as a result, more chances to obtain advanced skills from them.

It will also go a long way toward protecting local companies and creating jobs for local residents, the city said.

Congressman Song said, "I will work on boosting the local construction business by setting a favorable environment where local construction companies win more orders."

psykims@yna.co.kr

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Source: Yonhap News (Jul. 19, 2023)

*This article was translated from Korean.