Over $30 Billion in Overseas Construction Orders This Year...Unexpected Strong Performance

68% Increase in Orders Compared to Same Period Last Year
Unexpected Success Overcoming COVID-19 Challenges
Kim Hyun-mi Urges "Do Not Let Your Guard Down"

Aerial view of the Almaty Outer Ring Road in Kazakhstan, for which Korea Expressway Corporation and SK Engineering & Construction signed a construction and maintenance contract

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance announced on the 26th that this year's overseas construction orders exceeded 30 billion dollars. Despite many negative forecasts due to the novel coronavirus disease (COVID-19), it is analyzed that the government's support for orders was effective.

According to the Ministry of Land, overseas construction orders amounted to 28.2 billion dollars in 2016, 29 billion dollars in 2017, 32.1 billion dollars in 2018, and 22.3 billion dollars last year. This year, as of this date, it surpassed 30.2 billion dollars, exceeding last year's record. Compared to the same period last year, the order amount increased by 68%.

Considering the contraction of overseas orders due to COVID-19, low oil prices, and increased global economic uncertainty this year, the government held the External Economic Ministers' Meeting in June and made efforts such as preparing the 'Overseas Order Activation Plan.'

As a result, starting with large-scale civil engineering and plant orders in the Middle East early this year, it succeeded in achieving orders for large infrastructure projects in the Latin America region this month.

Looking at specific overseas order performance, Asia (35.6%) and the Middle East (34.3%) accounted for a large share, while the order size in the Latin America region increased significantly from 0.6% last year to 23% this year.

By construction type, plant (industrial facilities) orders still accounted for more than half (56.9%). Following that were civil engineering (22.7%), architecture (15.5%), engineering (2.5%), electrical (2.2%), and telecommunications (0.2%).

In investment development projects (PPP), there were achievements in pioneering new markets such as the Almaty Ring Road operation and maintenance project in Kazakhstan (75.8 million dollars), and throughout this year, government-to-government cooperation foundations such as the Korea-Bangladesh platform were established, raising expectations for order achievements from next year.

The government cited as major achievements Hyundai Engineering & Construction winning the 'Panama Metro Line 3 project,' the largest ever ordered in Panama, and Samsung Engineering winning the construction (EPC) of the 'Dos Bocas Refinery' in Mexico.

The Ministry of Land held a meeting on this day to celebrate reaching 30 billion dollars in overseas orders, attended by representatives from the Ministry of Economy and Finance, major construction companies, the Overseas Construction Association, and the Korea Overseas Infrastructure & Urban Development Corporation (KIND).

Minister Kim Hyun-mi of the Ministry of Land said in her opening remarks at the meeting, "The impact of COVID-19 on overseas construction orders may become more pronounced after next year," and added, "I hope our companies will not let their guard down and will actively pioneer the market."

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