Gangwon's construction industry shows signs of recovery amid intensified lobbying push
Gov. Woo Sang-ho of Gangwon Province said Wednesday that the province would not leave the construction industry to handle its struggles alone. He vowed to visit ordering agencies directly to create more opportunities for local companies to participate in projects.
Woo made the remarks as the construction industry, after enduring a severe slump, began showing signs of recovery. He said public officials should take an active role, particularly in the public sector. "When the local construction industry is struggling, the administration must run alongside it," he said.
"Following site visits in September, I will meet directly with the heads of major public ordering agencies in October to discuss ways to expand the use of local companies and revitalize the regional construction industry," Woo added. "The province will play an active role so that construction investment in Gangwon translates into work for local companies and vitality for the regional economy."
In September, Gangwon Province and the local construction industry will jointly visit major public ordering agencies to promote local companies. They plan to request expanded participation through joint contracting and subcontracting, as well as greater use of local materials, equipment and workers.
In October, Governor Woo plans to meet directly with the heads of major public ordering agencies to review the issues raised during the September site visits. He will also discuss cooperative measures to expand local company participation and revitalize the regional construction industry.
With construction orders in the province expected to keep growing, Gangwon Province plans to actively work to expand local company participation. The goal is for the increasing volume of construction work to translate into actual contracts for local businesses.
According to the Korean Statistical Information Service (KOSIS), construction orders in Gangwon Province totaled 2.78 trillion won ($2.07 billion) in the first half of this year, up 39.6 percent from 1.99 trillion won during the same period last year.
Next year's government budget for social overhead capital is set at 2.42 trillion won, up 61.5 billion won, or 2.6 percent, from this year's 2.36 trillion won. This has raised expectations for securing public sector work and points to continued growth in construction orders in the province.
Gangwon Province considers it important that this expansion in construction investment not simply increase the overall volume of work, but translate into actual jobs and sales growth for local companies. The province plans to actively channel the growing volume of construction work toward joint contracting and subcontracting participation by local companies, as well as the use of local materials, equipment and workers, so that the benefits of the increase in construction orders spread across the local industry and the wider regional economy.
In particular, since an April revision to the contract regime expanded the scope of region-limited competitive bidding for public corporations and quasi-governmental institutions to projects with an estimated price below 15 billion won, the province plans to actively encourage use of the revised regime through its September and October visits to sites and ordering agencies. The aim is to ensure the changes lead to real gains in contracts for local companies.
Starting in September, the province will visit major public ordering agencies together with local construction industry groups, including the Korea Federation of Construction Contractors and the Gangwon chapter of the Korea Specialty Construction Association. The visits will target eight major public ordering agencies, including state institutions such as the Wonju Regional Construction Management Administration, as well as public corporations such as the Gangwon headquarters of Korea National Railway and the Gangwon headquarters of Korea Expressway Corporation.
On Monday, the head of the province's Construction and Transportation Bureau and others will visit the Gangwon regional headquarters of the Korea Rural Community Corporation together with local industry groups such as the Korea Federation of Construction Contractors and the Korea Specialty Construction Association to discuss joint measures for expanding local company participation and reviving the local construction economy. The province will then visit the Wonju Regional Environmental Office on Tuesday and the Gangwon headquarters of Korea National Railway on Sept. 22, continuing its sequential visits to public ordering agencies.
The September visits by the province and the local construction industry to ordering agencies will lead into a joint response led by the governor in October.
In October, the governor plans to convene a joint meeting with the heads of major public ordering agencies to discuss joint response measures among the province, the local construction industry and major public ordering agencies to expand local company participation.
At that meeting, based on the results of the September site visits, the province plans to pursue a memorandum of understanding for mutual cooperation to expand the use of local companies and revitalize the regional construction industry, aiming to build a lasting cooperative framework rather than a one-time request for cooperation.
abc@heraldcorp.com
