The government will provide broader support for consulting on dispute response for small and midsize companies that have expanded overseas. The decision follows growing concerns over disputes at overseas construction sites due to instability in the Middle East.
The Ministry of Land, Infrastructure and Transport said on the 8th that it had expanded the "overseas construction integrated consulting support program" by securing 400 million won through a supplementary budget.
The "overseas construction integrated consulting support program" is a consulting support program aimed at small and midsize construction companies that have completed registration as overseas construction businesses, to resolve legal, labor, tax, and practical difficulties that may arise during the execution of overseas construction.
Recently, the spillover effects of the Middle East war—such as rising oil prices and increased costs for raw materials and logistics—have been spreading worldwide. As a result, various dispute-related risks are expected to emerge, including work stoppages, schedule delays, and delayed payments.
The Ministry of Land, Infrastructure and Transport (MOLIT) will strengthen legal, labor, tax, and expert consulting in preparation for an increase in disputes. It also expanded consultation time from the previous 12 hours to 24 hours.
Kim Yun-duk, Minister of the Ministry of Land, Infrastructure and Transport (MOLIT), said, "Given that damage is expected to small and midsize construction companies from Korea that have advanced overseas due to the unavoidable situation of the Middle East war, the government will do its best to support them, including through the consulting support program, to minimize losses for our companies."
Kim, the Minister, added, "Through this measure, we expect to strengthen overseas construction companies' dispute response capabilities and minimize risks, preventing further losses from expanding."