Busan Urban Corporation Implements Four Key Initiatives to Revitalize Local Construction Industry

Enhancing Local Company Participation...
Implementing Stronger Communication, Support Systems, and Regulatory Improvements
Setting an 83% Target for Local Subcontracting in Construction Projects...
Providing Incentives for Outstanding Companies

Busan Urban Corporation (BMC) has established and begun implementing a plan to revitalize the local construction industry, aiming to restore vitality to the regional economy and strengthen the competitiveness of the local construction sector.

This initiative was developed to inject new energy into the stagnant local construction economy by expanding bidding opportunities and providing various institutional supports to local construction companies, which have been struggling due to sharply rising construction costs and a prolonged downturn in the housing market.

BMC has set four key focus areas: ▲ increasing the participation rate of local companies ▲ actively implementing support systems and improving unreasonable regulations ▲ establishing a culture of fair trade ▲ strengthening communication and building governance with local companies. The corporation plans to introduce a variety of policies, including regional-restricted competitive bidding, mandatory joint contracting, expanded adoption of win-win payment systems, strengthened subcontracting supervision, introduction of a construction worker skill grading system, and expanded use of electronic card systems.

In addition, BMC has set a target for the local subcontracting rate in its construction projects at 83% (with 65% for local materials and 90.2% for local equipment), providing guidelines to enable broad participation by small and medium-sized construction firms. The corporation will also conduct monthly performance reviews and offer incentives such as awards to outstanding participants to further motivate active involvement.

Shin Changho, President of Busan Urban Corporation, stated, "This plan is composed of concrete and effective tasks so that the local construction industry can experience real benefits," adding, "We will do our utmost to discover and expand various policies to boost the local construction economy, strengthen cooperative systems with local companies, and create a fair construction environment."

Busan Urban Corporation

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