Overseas orders of Korean construction firms hit four-year lowMadeinkoreablog
Overseas orders won by South Korean construction companies fell to the lowest in four years, a trade association said Tuesday, in the latest sign that local builders are reeling from the impact of low oil prices.
The combined overseas orders came to $14.1 billion between January and the second week of June according to data compiled by the International Contractors Association of Korea.
The figures represent a 40 percent decline from $23.5 billion in the same period last year. Overseas orders won by South Korean construction companies in the same period in 2012 stood at $13.7 billion.
Low oil prices are blamed for the drop in overseas orders won by South Korean construction companies.
An official of the trade association said that 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.
The South Korean government is pushing to help local construction companies win overseas orders.
Minister of Land, Infrastructure and Transport Kang Ho-in visited Malaysia on Monday in an apparent move to boost South Korean companies seeking to win a high-speed rail project that connects Malaysia to Singapore.
He also plans to attend the inauguration of the Panama Canal’s $5.25 billion expansion later this month before visiting Chile.