Energizing Construction
Industry
Pres. Kwon of CAK calls for ease in regulations to invigorate the industry

The Construction Association of Korea held its New Year reception on January 9 with many industry people and dignitaries attending led by Minister of Construction and Transportation Choo Byung-jik.
President of the association Kwon Hong-sa opened the annual event with a remark that last year the industry experienced both ups and downs. On the domestic side, he said, the industry had to grapple with key developments like the administrative city construction project, relocation of major public organizations to the projected city, the construction of corporate cities around the country and the legislation of the law allowing the expansion of balconies at apartments, which are expected to bring lots of business to the industry.
On the other hand, the industry was jolted by the August 31 measure to stabilize the price of real estate, which cooled down the construction market. But the completion of the Cheonggyecheon Stream in Seoul once again confirmed the superiority of the construction technology in Korea, the CAK president recalled. The year also saw a number of construction firms involved in various illegal cases, calling for transparency in management of construction companies in the country. It was a great year for the overseas construction sector securing more than $10 billion in overseas construction project orders as the result of active construction diplomacy.
Kwon projected that the construction projects in the country would total 96 trillion won, down 1.6 percent from last year due to reductions in SOC projects and the August 31 measure that cooled down the private construction market. Profitability is also likely to be reduced due to the expansion of the low-cost bidding system, reductions in private housing construction and increases in taxes and other charges, the CAK president claimed.
But the association will push work to change the image of the construction industry, balance the growth of large and small builders and set up a base for sustained development of the construction business. The CAK will try to see that SOC investment are made continuously, the projects to build corporate cities and the new administrative city would be promoted without a hitch and improve systems to invigorate the civilian construction sector. It will also step up civilian diplomacy and the development of policies to continue to expand the overseas construction market for the builders this year, Kwon said.
Kwon also promised that the CAK will try to draw up a plan to prevent dumping practices in the lowest cost bidding projects to ensure mutual survival and cooperation between large and small builders so that superb facilities are built under the rationally supplemented bidding system. He said he will also see that infrastructure to train construction manpower will be built and increases in investments for the development of construction technology so that the industry might be reborn as a technology industry with strengthened competitive power.
Saying that the construction industry would not be able to survive with its pre-modern construction culture and past practices, noting that changes in the environment of the corporate management, stressing corporate ethical management and social responsibility as key factors for corporate competitive power. In this regard, the association will lead the industry to be more transparent, friendly toward people, and environmentally-friendly with the industry facing the 60th year of its start next year. The association, thus, plans to develop diversified construction culture contents so that the industry would be loved by the people, following its upgrading in terms of both quality and quantity.
He said the government will implement market-friendly policies for the industry and make the regulations rational so that people in the industry would have pride in their work and devote themselves to their jobs and the industry would fulfill its role as a growth engine for national economic development. nw

Heads of construction firms and guests including National Assembly Speaker Kim Won-ki and Construction and Transportation Minister Choo Byung-jik cut cakes at the new year reception of the CAK Jan. 6.