The cumulative overseas construction orders of domestic corporations have surpassed $1 trillion. This marks 59 years since Hyundai Engineering & Construction secured its first overseas order in Thailand in November 1965.
According to the Ministry of Land, Infrastructure and Transport, the cumulative overseas construction order amount exceeded $1 trillion (approximately 1,468 trillion won) last month.
As of November last year, the cumulative overseas construction order amount was $9,965. The construction industry reportedly achieved a cumulative order amount of $1 trillion as it rapidly secured overseas construction projects at the end of last year. Minister Park Sang-woo also noted in his New Year’s address that achieving the "$1 trillion" milestone was a significant accomplishment for last year and stated that it has greatly contributed to national economic growth. An official from the Ministry of Land, Infrastructure and Transport mentioned, "The overseas construction order amounts and detailed information are currently being compiled."
Last year's overseas construction annual order amount was reported to be the highest level in nine years since 2015 ($46.1 billion). However, it is known that the government did not achieve its target of $40 billion. According to the Overseas Construction Association, the overseas order amount from January to November last year was $32.69 billion. The order amount for December has not yet been disclosed.
Last year's overseas construction orders were primarily focused on the Middle East. The proportion of the Middle East in the overseas order amount increased from 34% in 2023 to about 50% last year. After Hyundai Engineering & Construction secured the Amiral petrochemical plant project ($5.08 billion), Samsung E&C and GS Engineering and Construction won a contract for the Padil gas plant worth $6.08 billion from Saudi Arabia’s state-owned oil company Aramco.
The increase in investment development project orders has also contributed to the rise in overseas construction orders. Investment development projects involve participants covering part or all of the required expenses while proposing the project and sharing profits according to equity. The proportion of investment development projects among the overseas construction orders of domestic corporations rose to the 10% range last year. The percentage of investment development projects averaged only 5.1% over the five years from 2018 to 2022.
This year's outlook for overseas construction orders does not appear bright. Observations suggest that factors such as political turmoil and uncertainties in the external environment following the state of emergency will make the overseas construction order environment challenging.