Ulsan City Goes 'All In' to Revive Local Construction... Subcontracting Rate Over 30%

2023 Regional Construction Industry Subcontracting Participation Plan Establishment

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] Ulsan City is set to actively implement strategies to revitalize the local construction industry.

On the 19th, Ulsan City announced that it has established the 2023 plan to expand participation in subcontracting within the local construction industry to support local construction companies struggling due to the recent downturn in the construction market.

The plan consists of 20 projects across 4 sectors. The subcontracting rate target has been raised by 3% from the previous year to over 30%.

Detailed implementation tasks by sector to increase the subcontracting rate.

By sector, to support 'Expansion of Local Private Construction Participation,' initiatives include holding meetings between large corporations and local companies, actively supporting subcontracting participation in the S-OIL petrochemical complex plant expansion, and signing agreements (MOU) to increase local construction companies' involvement in private construction projects.

To strengthen the 'Local Construction Industry Revitalization Participation System,' Ulsan City will revise the ordinance on the development of the local construction industry, raising the recommended subcontracting rate for local construction companies from 60% to 70%, and implement strengthened ordinances and financial support standards to increase local construction companies' participation rates.

To establish a 'Fair Construction Market Order,' the city will conduct thorough subcontracting status surveys and inspections twice a year, enhance the function of reviewing subcontracting contract appropriateness, and strengthen management of poor and illegal construction companies.

To create a 'Vital Base for the Construction Industry,' support will be provided for consulting on registration of local construction companies as partners of large corporations, ensure effective operation of the Local Construction Industry Development Committee, and hold joint meetings and inspections with public and private construction stakeholders as needed.

An official from Ulsan City stated, “Following the establishment of this plan to expand subcontracting participation, we will finalize detailed action plans and do our best to achieve a subcontracting rate of over 30% this year.”

The local construction industry subcontracting rate focuses on projects such as public construction works over 500 million KRW, apartment complexes with 100 or more households, and construction sites with a total floor area of 10,000㎡ or more. It is calculated based on the amount of contracts won by companies located in Ulsan compared to the total subcontracting amount per site.

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