SEOUL, KOREA - Samsung C&T has set its target sales revenue from construction orders at 16.6 trillion won. Of this, the overseas portion accounts for 70.4 percent at 11.7 trillion won. This is an ambitious goal given that last year the company earned 45 percent of sales revenue (6.2 trillion won) from overseas out of the total 13.7-trillion-won revenue.
AS the domestic construction market shrinks due to the recession, more and more construction
contractors are turning overseas to make up the shortfall. According to industry sources on February 11, major contractors have set their overseas order shares over 50 percent of their total revenue.
Daelim Industrial, for example, said that its target sales revenue from overseas business this year is 8.7 trillion won, 66.9 percent of the total 13 trillion won. Daewoo E&C has also set its goal of achieving a 15-trillion-won sales revenue by earning 52 percent of it (7.8 trillion won) overseas. POSCO E&C will accomplish a goal of making 59.1 percent (7.1 trillion won) of sales revenue overseas out of the total 12 trillion won.
The Ministry of Land, Transportation, and Maritime Affairs also estimates that the construction industry as a whole will make more than US$70 billion from overseas projects from last year's $64.9 billion. An official of the International Contractors Association of Korea said, "Korea's builders this year are diversifying their markets away from their bread-and-butter Middle East and more toward North Africa, Southeast Asia, and Latin America. In addition, they are expanding areas of specialty toward plants, civil engineering, and urban development."
*Article provided by The Korea Economic Daily
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