Han Seung-gu, chairman of the Construction Association of Korea, stated that he would revitalize the construction industry through the expansion of construction volume, such as social overhead capital (SOC), and the realistic adjustment of construction costs.
Chairman Han Seung-gu held a press conference in Gwanghwamun, Seoul, on the 21st, and said this. He noted, "I will actively work to revive the construction industry" and added, "I will dedicate myself even more to establishing a true construction culture in the future."
During the meeting, the Construction Association unveiled 10 key projects it is pursuing and their current status. The key projects include ▲ measures to ensure revenue for small and medium-sized construction projects ▲ establishment of a normal supply system for public infrastructure ▲ response to construction site regulations such as the Serious Accident Punishment Act ▲ support for the soft landing of project financing (PF) market and improvement of unfair practices ▲ realistic adjustment of construction costs through the improvement of standard cost estimates ▲ expansion of construction volume and establishment of a foundation for training technical personnel ▲ support for entering overseas construction markets.
The Construction Association plans to raise the SOC budget to 28 trillion won and is also working on relaxing the criteria for preliminary feasibility studies. Currently, projects with a total cost of over 50 billion won and government support exceeding 30 billion won are targeted for preliminary feasibility studies, but the plan is to raise these figures to 100 billion won and 50 billion won, respectively.
There will also be a plan to establish legal grounds for adjusting contract amounts in private construction projects according to price fluctuations. The revision of standard cost estimates is also being promoted. This is a measure aimed at properly reflecting the decreased productivity of skilled workers and the changed conditions at construction sites compared to the past.
Improving the long-term employment system for foreign skilled workers was also cited as an urgent task. The Construction Association argues that the waiting period for re-entry of foreign workers who have worked for 4 years and 10 months at the same business site should be reduced from the current 6 months to 1 month.
Efforts to improve unfair practices in the PF market will also be made. The scope of force majeure reasons in the commitment letter for responsible completion will be expanded, and improvements will be made to reduce excessive fees. To this end, the Construction Association plans to implement monitoring and improvement of PF practices reflecting industry opinions.
Support for entering overseas construction markets will also be strengthened. The Construction Association will discuss with its member companies to ensure that their opinions are reflected in the Ministry of Land, Infrastructure and Transport's dispatch of overseas infrastructure cooperation diplomatic delegations and plans to invite overseas clients, as well as encourage sharing of related information and participation in projects.