Geonsanyeon Publishes Regional Construction Industry Statistics Report... Overview of Orders and Regional Dependence

[Asia Economy Reporter Noh Kyung-jo] The Korea Research Institute for Construction Industry announced on the 14th that it has published the "2022 Regional Construction Industry Statistics," which provides various current status information such as investment and order scale of the regional construction industry nationwide.

This report compiles and reprocesses the latest various statistics provided by individual institutions to organize current status statistics by region.

The regional construction industry is evaluated as a core foundational (universal) industry to revitalize the regional economy. It has high effects on production and value-added inducement, as well as forward and backward linked industries and job creation. Local governments, related associations, and research institutions have recently been actively preparing policies to revitalize the regional construction industry, and the Korea Research Institute for Construction Industry emphasized that accurate statistics are essential for this.

Researcher Jeon Young-jun of the Korea Research Institute for Construction Industry explained, "When establishing regional policies, analysis of the investment and order scale of the regional construction industry should be conducted, but there have been difficulties in grasping the actual conditions of the regional construction industry by region due to the limitations of statistics compiled on a nationwide basis. This report is organized focusing on key statistics necessary for policy preparation among various current status information surrounding the regional construction industry based on the 17 metropolitan and provincial local governments nationwide."

The report presented the status of regional construction companies' dependence on in-region ordered construction projects by region. Based on the amount, it derived results showing a large gap from Seoul at 80.5% to Sejong at 21.9% over the recent five-year average. In the case of local government ordered construction projects, the in-region dependence was high, reaching an average of 83.7% nationwide. Researcher Jeon said, "It can be confirmed that, in addition to local government ordered construction projects, which have been the main target of related policies, multifaceted efforts are needed to increase the share of in-region ordered construction projects by other ordering institutions including government agencies."

The report also investigated and analyzed the budget execution status of facility projects in the 17 metropolitan and basic local governments nationwide. As a result, the Korea Research Institute for Construction Industry conveyed that it was found that the proportion of facility project budgets in the total budget decreased in all 17 metropolitan local governments as welfare budgets that local governments must bear rapidly increased.

Researcher Jeon said, "In addition to the regional construction industry statistics to be announced annually, we plan to publish reports on major topics related to the construction industry such as Environment, Social, and Governance (ESG) and infrastructure in the form of 'CERIK Industry Information.'"

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