Overseas orders won by South Korean construction companies this year may drop to the lowest level in a decade, a trade association said Thursday, in the latest sign that local builders are reeling from the impact of low oil prices and a protracted global economic slump.

This year's combined overseas orders came to US$18.47 billion by Wednesday, according to data compiled by the International Contractors Association of Korea.

The figure represents 53.7 percent of the $34.59 billion posted during the same period of last year, and also compares with $47.24 billion during the same period of 2014, the data showed.

The association projected that this year's overseas construction orders may reach some $30 billion, the lowest since 2006 when the comparable figure was $39.79 billion, it said.

South Korean builders' overseas orders tumbled to $46.14 billion last year, after reaching some $66 billion in 2014 and hitting a record $71.58 billion in 2010, the data showed.

Low oil prices and a slump in the global economy are blamed for the drop in overseas orders won by South Korean construction companies.

Orders from the Middle Eastern region came to $5.71 billion so far this year, sharply down from $12.31 billion during the same period of last year, and $26.06 billion in 2014.

Analysts said it could take time for oil-producing countries to assess the profitability of projects before placing orders, though oil prices have been on the rise recently.

"Oil-rich countries have slashed their mega orders in the face of low oil prices, and this trend may continue for a while down the road," said an official at the association. (Yonhap)