Concerns are growing that construction costs at construction sites could rise further following the increase in the won-dollar exchange rate. It has been analyzed that the construction materials most affected by price increases due to the exchange rate rise are imported rebar and section steel.
According to the construction industry research institute's trend briefing on the 19th, the average exchange rate against the dollar as of December was 1,434.4 won, the highest since the rapid surge in exchange rates during the financial crisis in February 2009. The research institute noted, "As a result of examining the items that would be affected by the construction costs due to recent exchange rate changes, it was found that imported rebar and section steel have the greatest impact, followed by imported stone products, and thirdly imported plywood."
A total of 6.4 trillion won worth of rebar and section steel are used in domestic construction. Among this, approximately 15%, or 900 billion won, are imports. Of the 256 major construction materials, the proportion of imports in total output was highest for rebar and section steel at 0.32%. Stone products followed, with a total of 1.77 trillion won being used, out of which 31.2% or 550 billion won are imports. After steel and section steel, costs are also significantly affected by the rise in the exchange rate. Additionally, plywood represents a total of 1.34 trillion won being used, with 530 billion won (39.6%) being imports, making it the third most significantly impacted by the exchange rate rise.
Park Cheol-han, a researcher at the construction industry research institute, said, "The government needs to lower the material procurement expenses for corporations through management of domestic and external uncertainties to recover the domestic economy, and construction companies need to respond to the sudden changes in exchange rates."