This year, overseas construction orders for South Korean companies have sharply declined after reaching a record high last year. The drop is attributed to the base effect of large projects like the Czech nuclear power plant and delays in Middle Eastern contracts.
According to the Ministry of Land, Infrastructure and Transport and the overseas construction industry, the total overseas construction orders from January to August this year amounted to $14.77359 billion, a decrease of about 60% compared to the same period last year. In contrast, last year saw orders totaling $47.27 billion, marking the highest level in 11 years since 2014's $66 billion.
Last year's performance was significantly influenced by large projects such as the Dukovany nuclear power plant in the Czech Republic. This highlights the structural limitations of the overseas construction industry, where annual results can fluctuate dramatically based on a few large contracts.
However, there are signs of recovery as large orders have begun to emerge this month. Samsung E&C secured a $3.5 billion contract for the 'SAN-7 Project' in Saudi Arabia on September 11, marking the largest single overseas order for a South Korean construction firm this year and exceeding the total orders from all domestic companies in the Middle East from January to August. This case illustrates how a single large project can significantly impact the overall statistics in the overseas construction market.
In response, the government is focusing on transforming the structure of overseas construction, which has traditionally centered on simple contracting and construction. The fifth basic plan for promoting overseas construction, announced in July, emphasizes expanding package projects that encompass project planning, financing, design, procurement, construction (EPC), and operation and maintenance (O&M). New business areas such as data centers, small modular reactors (SMR), carbon capture, utilization, and storage (CCUS), and AI cities have also been identified as strategic fields.
The upcoming Global Infrastructure Cooperation Conference (GICC) 2026, starting on September 15, is expected to serve as a platform for discovering new contracts and projects. The GICC connects domestic companies with foreign governments, contracting authorities, and financial institutions, having seen participation from 90 countries and 590 organizations since its inception in 2013.
This year's conference will address key issues related to rail, road, urban development, and public-private partnerships (PPP), as well as AI and energy infrastructure projects. The ability of the government and industry to secure a stable pipeline of orders beyond the existing Middle Eastern plants and nuclear projects will be crucial.
Kim Yoon-deok, Minister of Land, Infrastructure and Transport, stated, "With the spread of AI technology, the global infrastructure market is entering a transition phase centered on infrastructure that combines advanced technology and services. South Korea has accumulated technology and experience in smart cities and intelligent transportation systems based on world-class ICT technology, and we hope to establish ourselves as a global partner that meets the infrastructure needs of various countries through this GICC."
* This article has been translated by AI.
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