Last Year Construction Contract Amount 227 Trillion Won... Public Sector Increased by 19.2%

▲ Summary of Construction Contract Statistics for Q4 2019 (Provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Lee Chun-hee] Last year, the contract amount for construction work reached 227 trillion won, marking a 3.6% increase compared to the previous year. The contract amount for the fourth quarter (October to December) of last year also rose by 13.5% compared to the same period the previous year. The increase in contract amounts is analyzed to have been significantly influenced by a substantial rise in public construction contracts.

The Ministry of Land, Infrastructure and Transport announced on the 26th that the construction contract amounts for the fourth quarter and the entire year of last year were surveyed as such. The annual construction contract amount for last year was 226.9 trillion won, and the fourth quarter contract amount was 66 trillion won. These represent increases of 3.6% and 13.5%, respectively, compared to the same periods the previous year.

Looking at the contracts by client, the contract amount for public construction projects ordered by the national government, local governments, and public institutions increased significantly. On an annual basis, it reached 58.8 trillion won, a 19.2% increase compared to the previous year. The fourth quarter contract amount was 18.8 trillion won, up 34.8%.

On the other hand, the contract amount in the private sector slightly decreased. Last year, the private construction contract amount was 168.1 trillion won, down 0.9% from the previous year. However, the fourth quarter contract amount increased by 6.8% year-on-year to 47.3 trillion won.

By construction type, the increase in civil engineering was notable. Contracts for projects such as railroads and subways increased, resulting in an annual contract amount of 64.1 trillion won, up 9.5% from the previous year. For the fourth quarter, the contract amount was 16.8 trillion won, a 22.6% increase compared to the same period last year. In the building sector, contracts for residential buildings such as apartments also increased, with annual and fourth quarter contract amounts rising 1.5% and 10.7% year-on-year to 162.8 trillion won and 49.2 trillion won, respectively.

By company size, the top 1?50 companies recorded an annual contract amount of 92.5 trillion won, a 2.0% increase from the previous year, and companies ranked 51?100 had 14.2 trillion won, up 12.8%. Conversely, companies ranked 101?300 saw a decrease of 3.3% to 17.7 trillion won. Companies ranked 301?1000 recorded 19.4 trillion won, a 10.8%...

By region, the construction contract amount by site location showed that the Seoul metropolitan area reached 117 trillion won annually, a 13% increase from the previous year. In contrast, non-metropolitan areas recorded 110 trillion won, up 4.8%. By headquarters location, the Seoul metropolitan area saw an increase of 5.8% to 133.8 trillion won, while non-metropolitan areas rose 0.6% to 92.9 trillion won.

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