Han Seung-gu, president of the Construction Association of Korea, said on the 31st in his 2026 New Year's address that he would work to reasonably calculate and verify appropriate construction costs and construction periods.
Han said, "We will make the creation of fundamental conditions to prevent serious accidents our top priority and continue efforts to improve systems so that appropriate construction costs and periods can take root stably at sites," adding, "We will also further strengthen cooperation with relevant agencies so that reasonable calculation and verification of construction costs and periods can be achieved from the procurement stage."
Han said, "Safety at sites is the top value that can never be compromised under any circumstances," adding, "There can be no growth without safety, and establishing an institutional foundation by securing appropriate construction costs and periods is the starting point of construction safety." He said, "When responsible safety management by project owners and construction entities, thorough compliance with safety rules by workers, and policy support from the government are organically backed, safety can go beyond norms and take root as the everyday routine at sites," adding, "The association will focus all its capabilities on field-centered support and system improvements to create construction sites where safety is everyday."
Regarding improving the business conditions of small and midsize construction companies, he promised, "We will continuously push to improve the overall public contracting system, including expanding the exclusion of bids below 98% of net construction costs, correcting the practice of excessive advance payments, and operating the system for direct purchase of government-supplied materials in a reasonable manner."
Excluding bids below 98% of net construction costs is a system that secures appropriate construction costs by barring bidders from selection if they bid less than 98% of net construction costs (materials, labor, and expenses). Since 2019, the government has implemented this system for projects under 10 billion won, but the construction industry argues it should be expanded to projects of 10 billion won or more.
Han added, "To raise labor productivity in the construction industry, which remains at a low level compared to advanced countries, and to break away from the existing labor-intensive and field-dependent industrial structure, we will also work to update design and construction standards related to smart construction technology and to train skilled professionals." He continued, "We will also make efforts in parallel to support employment and improve perceptions so that young workers can naturally flow into aging construction sites."