[THE INVESTOR] South Korean construction firms’ overseas contracts won in the first half of the year plunged 40 percent from a year earlier, industry data showed on June 30.

According to the International Contractors Association of Korea, the value of overseas contracts awarded to local builders during the first half of the year came in at US$15.2 billion.

By region, Middle Eastern contracts dropped 32 percent to come in at about US$4.7 billion, while the figure for Asia was US$6.9 billion, down 47 percent. 


The industry is expecting the slowdown to continue into next year. In a recent report, the Construction and Economy Research Institute of Korea said that overseas contracts will remain sparse in the coming year citing low growth projection for the world economy.

According to Korea’s construction industry, the slowdown in the Middle East-North Africa market has had the biggest impact.

The region accounts for more than half of Korean builders’ overseas projects. The fall in oil prices has hit the region hard, and UK’s decision to depart from the European Union has come as a major stumbling block for oil producing nations.

By Choi He-suk (cheesuk@heraldcorp.com)