The government will overhaul the overseas construction order statistics classification system and related laws and regulations to keep pace with the rapidly changing industrial environment. It aims to move beyond the existing design-procurement-construction (EPC)-centered tabulation to reflect investment-development (PPP) projects and digital technology-based projects such as artificial intelligence (AI) and digital twins in the statistics.
According to the overseas construction industry on the 5th, the International Contractors Association of Korea announced a bid on the 30th for a research project titled "Study for the overhaul of overseas construction order statistics." The preliminary specifications were disclosed from Mar. 25 to 28, and the bid notice runs through Apr. 8. Proposal evaluations will take place after the 10th. The budget totals 1 billion won, including value-added taxes.
The core of this overhaul is to diversify the participants in overseas construction order statistics from construction companies to include the financial sector and manufacturers. Since the first entry in 1965, the total accumulated overseas construction orders reached $1 trillion in 2024, marking external growth. In the current global market, the position of Korean corporations is unstable compared with the rise of emerging countries such as China and Türkiye and the solid standing of advanced construction nations such as France and Spain.
Recently, domestic corporations, considering profitability, have been seeking selective bidding and entry into new markets overseas, actively identifying state-of-the-art infrastructure and PPP projects. However, there has been criticism that the current statistics, which focus on construction-centered contract amounts, have limits in capturing these industrial structural changes.
An official in the overseas construction industry said, "For example, up to now, when a construction company signs a turnkey contract overseas or makes an investment overseas, it is counted in overseas construction orders," while adding, "Projects in which domestic banks or manufacturers invest overseas are not included in the overseas construction order statistics."
Through this research project, the government plans to analyze the current state of overseas construction order statistics and review the need for an overhaul. Specifically, it will study: ▲ the current composition and tabulation methods of overseas construction order statistics ▲ changes in overseas construction business types over the past 10 years ▲ examples of orders in new areas ▲ PPP participation methods and types.
Laws and systems related to overseas construction will also be revised. Among the provisions of the Overseas Construction Promotion Act, items requiring amendment will be reviewed. The plan is to identify key provisions related to order statistics and new business types, including PPP, and draft amendments.
The division of roles and operation of a consultative body between the International Contractors Association of Korea and the Korea Overseas Infrastructure & Urban Development Corporation (KIND), a specialized agency for overseas investment and development projects, will be reviewed, and a detailed analysis will be conducted of changes in business types over the past 10 years and PPP participation methods.
Work to amend the Overseas Construction Promotion Act to establish a legal basis will proceed in parallel. The plan is to identify key provisions to encompass new business types and PPP projects, prepare amendments, and newly establish the statistical operating system.
An official in the overseas construction industry said, "Through this research project, the government will detail standards so that IT-related industries in which domestic corporations show strengths, such as digital twins and artificial intelligence (AI), and investment-development (PPP) projects in overseas construction can be reflected in overseas construction order performance," adding, "The status of overseas construction will be reestablished as a convergence industry that combines construction with finance and IT."