14 Iraq Sites, Construction Industry 'On Alert'... "Emergency Response Team Operating, Closely Monitoring Situation"

[Asia Economy Reporter Kim Yuri] Iran's airstrike on U.S. military bases in Iraq has created tension within the domestic construction industry. If the conflict between the U.S. and Iran escalates into war, it could disrupt overall business in the Middle Eastern market, a key market for the industry. Above all, if the situation becomes urgent, it could affect the safety of employees at local sites, so both the government and the industry are closely monitoring the situation.

According to the Ministry of Land, Infrastructure and Transport and the construction industry on the 8th, there are currently a total of 14 sites operated by Hyundai Engineering & Construction, Daewoo Engineering & Construction, Hanwha Engineering & Construction, and others in Iraq. About 1,380 workers are employed at these sites. Approximately 660 workers are at the Karbala refinery site jointly constructed by Hyundai Engineering & Construction, GS Engineering & Construction, and SK Engineering & Construction, and about 390 workers are at the Bismayah New Town construction site built by Hanwha Engineering & Construction. All these sites are located away from the U.S. military bases where the airstrikes occurred, and it is reported that there has been no damage to the sites.

Currently, no domestic construction companies have entered Iran. However, some companies like Daelim Industrial operate branches there to recover unpaid construction fees and secure additional orders. A Daelim Industrial official said, "One domestic employee was dispatched to the Iran branch, but after returning home last winter, they have not been able to return to the local office due to the worsening relations between the U.S. and Iran. We are monitoring the situation."

The Ministry of Land, Infrastructure and Transport, together with the Ministry of Foreign Affairs, has established an emergency contact network for Iran·Iraq and is continuously monitoring the situation, advising our citizens and site workers to refrain from going out or traveling. A ministry official said, "There are no business sites in Iran, and there is no direct impact yet on the Iraq sites such as Karbala," adding, "We are closely watching the developments and plan to prepare additional measures depending on the situation."

Local sites are continuing construction as usual while operating emergency response teams to prepare for additional airstrikes. Following recommendations from the Ministry of Foreign Affairs, measures such as suspending additional entries into Iraq are also being implemented.

A Hyundai Engineering & Construction official said, "The Karbala refinery site is about 300 km away from Baghdad, the capital of Iraq, and is located in an outlying area, so it is currently considered safe," adding, "However, we are monitoring the situation through an internal emergency response team and reviewing countermeasures in case the situation worsens."

Hanwha Engineering & Construction is also operating the site normally while closely monitoring the situation. A Hanwha Engineering & Construction official said, "The Bismayah New Town construction site is more than 200 km away from the additional airstrike sites. Since the site is distant from the U.S. embassy and military bases targeted by Iran, there is no direct risk. The Iraqi government has not issued any special instructions," but added, "Following the Ministry of Foreign Affairs' advisory to refrain from entry, employees who returned to Korea will postpone re-entry into Iraq for the time being. The site has also restricted external movement."

Daewoo Engineering & Construction, which is carrying out port construction in Basra's Al Faw area, is conducting emergency response scenario training for domestic and foreign workers according to its emergency preparedness plan.

Construction companies are concerned that this situation could further impact the already gloomy outlook for future Middle Eastern orders. According to the Overseas Construction Association and the construction industry, last year's expected overseas construction orders amounted to $21 billion (approximately 24.57 trillion KRW), the lowest in 13 years since 2006 ($16.4 billion). A representative from a major construction company said, "We are worried that the conflict between the U.S. and Iran might affect orders throughout the Middle East," adding, "If that happens, the already difficult situation for the domestic construction industry, struggling in overseas markets, will worsen."

This content was produced with the assistance of AI translation services.