LH, Vital to Gyeonggi Recovery... Record 17 Trillion Won Construction Orders

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Korea Land and Housing Corporation (LH) will issue new construction and service contracts exceeding 17 trillion won this year to help recover the construction market. In particular, the housing business will increase by 4.3 times compared to last year's performance.

On the 28th, LH announced that it will issue construction and service contracts worth 17.1 trillion won this year. This exceeds LH's average annual contract issuance amount of around 10 trillion won. Especially, the housing business contracts (including construction and follow-up works) targeting the start of construction for 50,000 housing units this year account for 13 trillion won, representing a significant portion. This is 4.3 times the amount compared to last year's performance. LH explained, "We have established the largest-ever contract issuance plan to revitalize the construction market and expand housing supply."

By type, the construction sector accounts for 16 trillion won, and services for 1.1 trillion won. The construction sector includes ▲Comprehensive Evaluation Bidding System 10 trillion won (76 cases) ▲Simplified Comprehensive Evaluation System 2 trillion won (96 cases) ▲Qualification Evaluation System 2.7 trillion won (760 cases). The volume of construction and service contracts under the Comprehensive Evaluation Bidding System increased by about 7 trillion won compared to last year. The service sector includes ▲Comprehensive Evaluation 400 billion won (76 cases) ▲Qualification Evaluation 400 billion won (458 cases).

By work type, the breakdown is ▲Building construction 11 trillion won (273 cases) ▲Civil engineering 1.5 trillion won (56 cases) ▲Electrical, communication, and fire protection works 2 trillion won (442 cases) ▲Landscaping works 500 billion won (56 cases) ▲Other works 1 trillion won (118 cases). In the service sector, technical services such as design, supervision, and feasibility studies amount to 700 billion won (468 cases), and other general services total 300 billion won (248 cases).

Following the government's fiscal early execution policy to activate construction investment, LH plans to issue more than 60% of the annual contract volume in the first half of the year. The housing construction contracts, which were usually concentrated after September, will be advanced by more than two months to encourage early construction starts. In addition, LH will closely manage the monthly and quarterly schedules of major apartment construction contracts that attract industry interest and will update and reannounce major construction schedules before the second half of this year to support construction companies' participation in bidding.

LH President Lee Han-jun stated, "Due to the continued decrease in housing supply and the construction market downturn since last year, market concerns about rising monthly rent and sale prices in 2 to 3 years have increased," adding, "We have allocated the largest-ever contract volume not only to recover the construction market but also to stabilize national housing, and we will execute the plan with a sense of urgency."

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