Korea's Construction in the Middle East: Past, Present and ... · highway between Khayba and Alula ($24,059,000; Dec.1, 1973). It would be called as Middle East rush stage since the

|KOREAN JOURNAL OF MIDDLE EAST STUDIES|No. 34-3 [Nov. 2013]: 17∼40

Korea's Construction in the Middle East:

Past, Present and Future*

|SHIM Ui Sup**|

1)2)

Korea's Construction in the Middle East: Past, Present and Future

This paper discussed the Korea's strong factors for the period of Middle East construction boom and suggestions for the strategic alternatives for the industrial development to be worldwide companies. Historical growth of international construction contracts, situation of Middle East construction boom, current situation, strong factors for competition such as complementary relationships, lower wage, higher productivity means, government support are discussed in order. The latest surge past the 500-billion-dollar mark was powered by the last five years’ stellar performance. The trend will reap 100 billion dollars annually in overseas construction deals in 2014 and rank among the world’s top five overseas builders. However, there are a number of challenges to overcome. Construction firms should make more efforts to diversify their overseas markets to reduce their heavy dependence on the Middle East and secure more orders in other rapidly growing emerging economies. The government has and will extend more financial and other support to help builders advance into new markets and win more deals as they are locked in intensifying competition with

* This is the revised article "Korea's Construction in the Middle East: Past, Present and Future" read

at the 2013 Spring international Seminar "A Grand Discovers Through the Communication between

Religions", Korean Association of the Middle East Studies, Dongguk University, Seoul, Korea, May

25, 2013.

** Emeritus Prof., Economics Department, Myongji University.

18 |KOREAN JOURNAL OF MIDDLE EAST STUDIES||No. 34-3 [Nov. 2013]

Chinese and European rivals.[Key Words : overseas construction, Middle East Infrastructure, construction

boom, low cost, Korean construction, construction contract]

Ⅰ. Foreword

1. Growth of international construction contracts

Korea's oversea's construction industry is one of the important sectors to

contribute her economic miracle. Whenever looking the History of Korea's Overseas

Construction it was well matched supply and demand side during the period. The

objects of this paper are to analyse the Korea's strong factors for the period of

Middle East construction boom and to suggest the strategic alternatives for the

construction industry development to be global companies.

In this paper the historical stage of development of the industry and mention

about the historic landmark of Korea's international construction masterpiece around

the world. In next sections what was the business environment of the developing

decade of Korea's overseas construction industry, and what is the current situation.

Before the conclusion the strong competition factors will be discussed.

According to the International Contractors Association of Korea's(ICAK) historical

review, the Period of Pioneering Days means 1965~mid of 1970s. The first advance

into overseas construction market by winning Thailand express way construction

contract in Nov 1965. At that time Southeast Asia construction based mostly on

development loans and US military projects.

Next stage called Period of expansion and maturity, late of 1970s~early of 1980s.

|SHIM Ui Sup| Korea's Construction in the Middle East | 19

The first advance into Middle East market by winning Saudi Arabia road

construction contract in Oct. 1973. Achieved the amount of $10 billion in contracts

won for three consecutive years and enter the top 7 in overseas construction

powers.

During the period of depression (mid of 1980s~early of 1990s), Sharp drop in

contracts due to the recession in the Middle East economies. The most important

project during this period is the Awarded the 2nd phase of Great Man-Made River

Project in Libya 1990($4.6billion).

The period from mid 1990s to pre financial crisis in 1997 called period of

acceleration since the Asian markets are regarded as the forefront to expansion. In

this period the contracts are $14 billion, a record high, in 1997 just before financial

crisis.

After this crisis the industry met the Period of Adjustment (1998~mid of 2000s).

It needed intensive restructuring of construction industry due to financial crisis in

Asia in 1998. It required to transit to higher value-added type of works from civil

and architecture to plant.

Current period we call Period of Real Growth (2005~present). The Annual

contract amount exceeded $50billion for 3 consecutive years ; $71,66 billion(2010),

$59,13 billion(2011), $64,88 billion(2012). The cumulative total of contracts reached

$500 billionin Jun. 2012.

2. Historical land mark

For the Korea's overseas construction projects are brilliant compare to its history.

The historic and masterpiece project start from November 1965, The first Advance

Pattani-Narathiwat Highway project(1965.11, $5.4 million) in Thailand.

The first record of accumulated $100 billion contracts was April 1993. The big


projects are Jujail Industrial Harbour Project ('76.6, $0.93 billion) in Saudi Arabia,

and Great Man-Made River Project ('83.11, $3.62 billion) in Libya.

Next the $200 billion contracts are accomplished in February, 2006. The famous

projects are South Pars Phase 1-10 Project('99~'05, $3.46 billion) in Iran, and

Cadereyta Complex Project ('97.11, $1.34 billion) in Mexico.

$300 billion contracts are accomplished in December, 2008. The famous projects

are Ras Laffan CIWPP Project('08.5, $2.07 billion) in Qatar, and ERC Hydrocracker

Project ('07.8,$2.06 billion) in Egypt.

$400 billion contracts are accomplished in September, 2010. The famous projects

are Nuclear Energy Power Plant('09.12, $18.6 billion) in UAE, SHWE Field

Development Project ('10.2, $1.39 billion) in Myanmar, and MOE HFO Desel Power

Plant Project('11.5, $2.95 billion) in Iraq.

The historic record is $500 billion contracts June 2012, the important projects are

Steel Plant Complex('11.12, $4.39 billion) in Brazil, and Bismayah New City

Project('12.5, $7.75 billion) in Iraq.

Fig. 1 Historical land mark record

자료: 해외건설, 반세기만에 5천억불 수주 이뤄내, 국토해양부보도자료, 2012. 6. 13


Ⅱ. Situation of developing decade

The Middle East construction boom during the 1970s called as the Middle East

rush (1973-1980)1) in the international construction market. The first project Korea

undertook in the offshore construction market was highway work in Thailand in

1965. After lost the South Vietnam construction market in 1975, Korean companies

rushed to Middle East construction market.

Table 1 Overseas Construction Contracts by Regional MarketUnit: mln US$

Africa Middle EastPacific Region

South East Asia

Others* Total

1973 24.1 31.1 118.1 1.1 174.3

1974 0.1 88.8 24.6 142.2 4.9 260.6

1975 15.1 751.2 5.4 60.7 0.6 832.9

1976 6.7 2,429.1 17.1 34.6 14.1 2,501.7

1977 0.2 3,387.0 9.7 119.3 0.1 3,516.2

1978 25.2 7,982.4 10.4 91 35.9 8,145.0

1979 0.6 5,958.4 14.4 378 6,351.3

1980 26.5 7,819.4 4.5 409 8,259.4

1973-80

74.4 28,440.4 117.2 1,352.9 56.6 30,041.4

(%) 0.2 94.7 0.4 4.5 0.2 100 Note: * North and South America. Source: SHIM Ui Sup, "Korea's Participation in the Middle East Construction Market: An Introduction", Asian Economies, No. 47, December 1983

The most important event in historical perspective was the exploration of the

Saudi Arabian market by Samwhan Corporation for the construction of 164km

highway between Khayba and Alula ($24,059,000; Dec.1, 1973).

It would be called as Middle East rush stage since the expansion of overseas

1) This paper surveys the period up to 1980 because of the unavailability of more recent data.


construction grew rapidly and Korean contractors concentrated on Middle East

market which means Korean companies shared 21.4 percent of the contract awards

in Middle East between May 1978 and June 1979.

Table 2 Top 10 contractors during the period from June 1975 to June 1979 in the Middle East

Top-ten rankContract awards

(mln US$)Market share(%)

mid-boom* boom** mid-boom boom mid-boom boom

Korea 1 5 4,667 9,252 21.4 8.6

Italy 2 3 3,529 10,237 16.2 9.5

West Germany

3 1 3,327 18,287 15.3 16.9

Japan 4 2 2,662 17,219 12.2 15.9

France 5 6 1,324 7,897 6.1 7.3

U.K. 6 8 643 3,637 3 3.4

U.S.A. 7 4 346 9,292 1.2 8.6

Switzerland 8 9 231 2,345 1.1 2.2

Belgium 9 10 87 2,225 0.4 2

Netherlands 10 7 72 6,581 0.3 6.1

Notes: * May 1978-June 1979 ** June 1975-June 1979 Source: "U.S. ’Arrogance’ costs firms billions in lost jobs," Engineering News Record (November 29, 1979), p. 32.

The characteristics of Koran contracts are concentration phenomena in region

and project type, in other words concentrated in Middle East oil exporting countries

in region and civil engineering project in project type.


Civil eng.

Buildg Plant Elect. &com.

Service Total

Orders awarded in the M.E.

96,318 113,318 122,620 33,773 13,437 379,464

Share % (1) 25.4 29.9 32.3 8.9 3.5 100.0

Orders received/Korean

firms16,685 17,535 5,603 570 83 40,476

Share % (2) 41.2 43.3 13.3 1.4 0.2 100.0

Revealed comp. advan. Indx

(2/1)162 145 43 16 6 100

Note: The original source of the international contracts data is various issues of the Middle East Economic Digest; the values of Korean exports do not coincide with those in table 1.Source: KIM Sooyong, The Korean Construction Industry as an Exporter of Services, The World Bank Economic Review, Vol. 2, No. 2, May 1988: 233.

Table 3 Revealed Comparative Advantage of Korean OverseasConstruction Exports to the Middle East, 1975-84.

Unit: Mln USD

The dominance of Korean firms in the Gulf market has developed over the later

half 1970s, as Western contractors’ dominance in the 1980s and 1990s has waned.

Korea companies was rushed to the infrastructure development projects in the

Middle East, and transit from sub-contractors to major prime contractor with lower

bids.

Ⅲ. Current situation

1. Current Status of Overseas Construction

Since the mid 1960s, Korea's 931 construction contractors have successfully


participated in more than 9,251 contractors in 143 countries, with total worth of

over US$593 billion as end of Dec. 2012 in accumulated record2).

To remain highly competitive in a complex and rapidly changing overseas

construction market, Korean contractors are striving to develop new engineering

methods and explore new market. They are also sparing no effort to reignite their

growth potential by enhancing their financial capabilities, and business identification

and planning abilities.

Fig. 2 Korea's construction awarded around the World

Source: http://eng.icak.or.kr/kciw/kciw_01.php [2013.10.18]

2) The annual records as of 2012 are US$410 billion contract amount, 465 contracts cases in 92 countries

and 224 companies are participated.


Fig. 3 Outlook of contract amount awarded by year(as of June 13, 2012)Unit: thousand USD


Fig. 4 Contract amount by year



Fig. 5 Contract amount by work type


2. Korea's historical record

The total accumulated amount of Korea’s overseas construction projects stood

at 513 billion U.S. dollars. It took Korea 47 years to surpass the 500 billion dollar

mark in overseas construction projects(KBS World, 2012.06.15).

In the last 47 years, Korean overseas construction projects have achieved several

world records. The Libya waterway construction project, The 828-meter Burj Khalifa

in the UAE, The Marina Bay Sands Hotel in Singapore.

Korea’s surpassing 500 billion dollars in overseas construction projects is quite

meaningful for the nation’s economic history, for the building of projects in

foreign countries was one of the engines that drove Korea’s phenomenal

economic growth.

Korea’s overseas construction industry has rapidly grown in the last five years;

since 2007, Korea has won an especially great deal of overseas construction orders

worth approximately USD 300 billion(Korea.net, Jul.10, 2012).


Table 4 Korea's contracts awarded by regionUnit: million US$, %

1965~1912 1911 1912

Total(%)

9,020 544,871 825 59,114 618 64,878

(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)

Middle East(%)

3,167 24,148 116 29,541 106 36,871

(35.1) (59.5) (18.6) (50.1) (17.2) (56.9)

Asia(%)

4,540 162,090 370 19,421 384 19,437

(50.3) (29.7) (59.1) (32.8) (62.1) (30.0)

Others(%)

1,313 358,633 339 10,152 128 8,570

14.6 10.8 22.3 17.2 20.7 13.2Source: 해외건설협회, 2012년 해외건설 수주실적 분석 및 2013년 전망

Table 5 Korea's top 5 country in the Middle East construction marketUnit: No. million US$

2011.12.31 2012.13.31

Contract Amount Contract Amount

Middle East 116 29,541 Middle East 106 36,871

Saudi Arabia 54 16,589 Saudi Arabia 33 16,167

Iraq 8 3,666 Iraq 12 9,636

UAE 15 2,125 UAE 15 2,959

Oman 5 1,998 Algeria 15 2,758

Kuwait 6 1,559 Kuwait 10 2,753

Source: 해외건설협회, 2012년 해외건설 수주실적 분석 및 2013년 전망

By region, the Middle East accounted for 60%, or 319 billion dollars, of the 500

billion dollar overseas project revenue(June, 2012). At the end of 2012, yearly

amount recorded 674,878 million dollars. Saudi Arabia takes 57%(36.9 mln $) since

she ordered the largest number of construction projects from Korea, with 8,638

projects valued at USD 50.1 trillion.

By project type, plant construction contracts took up 54% of the total with 268.3

billion dollars, architectural projects 24% with 120.6 billion dollars, civil engineering


works 18% with 92.9 billion dollars, and engineering and other works 4% with 19.5

billion dollars.

By construction types, plant construction orders of USD 268.3 billion have been

the largest part which is 54% of Korea’s whole overseas construction.

Architecture projects of USD 120.6 billion and civil engineering work of USD

92.9 billion followed.

3. Second wave

The first wave of South Korean contractors came to the region during the oil

boom in the 1970s, when they mainly focused on heavy civil engineering. The

second Middle Eastern boom based on high oil prices in recent years to provide

a new opportunity for Korean construction companies.

The scale of the oil-fuelled boom in the MENA region around 2005, particularly

in the six-country GCC area and Libya and Algeria, is unprecedented. Industry

experts estimate MENA has more than US$1 tn worth of construction projects for

foreign contractors over the next 10 years. And South Korean builders are riding

the boom.

There is an acute shortage of engineering, procurement and construction (EPC)

contractors. The demand for turnkey EPC contractors in these eight MENA countries

is rising further. There is a shortage of skilled manpower, which has caused

contractors' prices to keep rising. South Korean builders are in a premium position

as they provide all the elements(APS Review, December 26, 2005).


Table 6 Korea's contracts awarded by work typeUnit: mln USD, %

1965-2012 2011 2012

Case Amount Case Amount Case Amount

Total 9,020 544,871 625 59,144 648 64,878

100.0 100.0 100.0 100.0 100.0 100.0

Civil Eng.1,877 98,728 78 5,765 66 8,599

20.8 18.1 12.5 9.7 10.7 13.3

Architecture2,857 124,861 160 7,937 169 14,324

31.7 22.96 25.6 13.4 27.2 22.1

Plant1,484 300,000 111 43,319 92 39,549

16.5 55.1 17.8 73.3 14.9 60.9

Electricity652 11,625 45 954 41 1,517

7.2 2.1 7.2 1.6 6.6 2.3

Telecom.120 2,692 10 61 13 74

1.3 0.5 1.6 0.1 2.1 0.1

Service2,030 6,965 221 1,108 237 815

22.5 1.3 35.3 1.9 38.5 1.3

Source: 해외건설협회, 2012년 해외건설 수주실적 분석 및 2013년 전망

The high price of oil has hurt many South Korean companies, but it has been

a boon for some of the country's old blue-chip companies, particularly those

involved in construction projects bankrolled by deep-pocketed oil producing

countries. The high oil price, combined with the strong value of the local won

currency against the US dollar, is erasing much of the competitive margin

previously enjoyed by the country's major exporters(Hindustan Times, Nov. 15,

2007).


Ⅳ. Strong factors for competition

1. Determinants of development decade

Complementary relationships: oil-rich countries aimed at massive infrastructure

construction development. Almost from the start a principal constraint to economic

development was a shortage of manpower of virtually all kinds and at all levels(J.

Stace Birks and Clive A. Sinclair 1977, 28-32). This situation was an opportunity for

the Korea.

Lower wage: The wage level in Korea is only about 25 percent of that in Japan

and about 10 percent of those in Western countries like Sweden(Institutional

Investor 1978, 116). For example, $420 per month for Korean worker in the Middle

East which gave opportunities for lower bids about 10 percent or more to

rivals(Business Week, August 1, 1977, 41).

Korean engineer in Saudi Arabia costs less than 50 percent of the cost of an

American counterpart(Business Week, May 29, 1978, 34); The Economist, May 7,

1977, 48). The wage of Korean skilled labor in the Middle East was typically twice

what it could earn in the domestic markets. So it called as ‘brawn-drain’ type

for international labour movement.

Higher productivity: wage saving by using Korean workers. Almost every Korean

worker worked hard with the hope of buying his ‘own-house’. It was not

strange to call that Koreans were called the worst ‘workaholics’ in the World,

average 50.7 hours per week compared with 39.4 in USA(Roy Roman 1977, 171).

Government supports: Korean government provides them with low-cost loans,

loan guarantees, and five-year tax exemptions on earnings from exports of

construction materials and equipments. The government advised skilled workers not


to hire out to foreign contractors. The government also provided some form of

institutional supports: intra-ministry task force team to solve the problems of

overseas construction. It introduced the overseas construction promotion law

(effective on and after April 1, 1976) to support Middle East construction activities.

Other aspects: Most of the Gulf States are anti-communist, the tie that bound the

cooperation between Korea and the Gulf States. Furthermore, Islam has less cultural

differences with Oriental culture than does Western culture. Another factor which

favors Korean companies is the ‘Arab Boycott of Israel’ which affects adversely

Western corporations, especially USA corporations.

2. Current features

1) Competitive pricing

The Korean companies have a reputation of driving forcefully into the market

where pricing is very keen(Adrian Pritchard, July 09, 2012). Western companies

want to enjoy to play a role they need to show clear innovation and differentiation

versus this competition. For example, in the case of the huge public investment in

housing in Saudi Arabia, the success factor was to clear cost saving techniques

rather than to persuade their added features. As a result South Korean firms keep

their dominance in the market and their position across the Middle East using their

cheaper bids(cDiver June 26, 2009).

2) Advanced project

Korean companies have also been targeting countries in the wider Middle East

and North Africa region. In both cases, Korean engineering, procurement and

construction (EPC) contractors plan on using the project awards as a springboard


for further growth.

Prior to the Asian financial collapse in 1997, Korean firms complained that they

were not being given a fair opportunity to bid for major EPC contracts in the

Middle East, and in some instances, oil and gas subcontract work.

This was because they were largely regarded as civil construction companies.

3) Adventuring to new market

Korean contractors have flocked to Saudi Arabia, Qatar and Kuwait to bid on

megaprojects worth billions of dollars. But as those countries have delayed work

while waiting for the demand outlook in the market to become clearer, Korea has

successfully turned its attention to Abu Dhabi and Algiers’ newfound appetites to

push through their own ambitious schemes.

Korean firms have adapted well in capitalizing on the absence from the market

of more established Western contractors, who are waiting favorable demand

outlook and reluctant to open themselves to more risky, fixed-price contracts. This

willingness to take on risk means Korean construction firms have continued to win

contracts despite the global recession.


Table 7 Global and overall construction industry competitive power(2012)

2012 2011

Rank Country index Country index

1 U.S.A. 100.0 U.S.A. 100.0

2 China 88.0 China 91.4

3 Germany 78.0 Italy 81.1

4 Italy 76.5 U.K. 79.1

5 Austria 75.4 Germany 79.0

6 Spain 74.7 France 77.9

7 S. Korea 73.8 Netherlands 76.2

8 France 73.6 Australia 74.8

9 U.K. 72.9 S. Korea 73.7

10 Japan 71.6 Belgium 73.5

11 Netherlands 70.5 Japan 73.1

12 Sweden 66.6 Spain 71.8

13 Denmark 63.5 Austria 71.3

14 Canada 62.0 Portugal 70.5

15 Belgium 61.2 Sweden 67.9

16 Ireland 61.0 Taiwan 67.9

17 Turkey 60.8 Canada 66.6

18 U.A.E. 60.6 Greece 66.3

19 Greece 60.6 Ireland 65.7

20 India 59.3 Turkey 65.4

Note: Overall index : weighted index of National construction infrastructure competitive power(35%), and National construction company capability poser(65%)

Source: Ministry of land, Infrastructure and Transport, 2012년 건설산업 경쟁력 세계 7위, 보도자료, 2013. 1. 9

4) Cooperate localization demand

The trend for big-hitters such as Saudi Aramco and Libya’s National Oil

Corporation to require more stringent investment terms reflects the fact that few of

the large energy projects around the region make a significant long-term

contribution to the development of local skills. It is a major issue for every Korean

company that operates in the region’s energy sector. Every country wants to

protect its own local businesses and contractors. In some countries, they do not


have enough local engineering capacity to deal with huge projects. Their manpower

and capacity is very small, so they need international contractors who are capable

of dealing with megaprojects.

5) Entry risks of security and sanctions

Despite Korean companies' reputation for risk taking, few Korean EPC

contractors are looking to enter Iraq with security concerns. For example, Hyundai

E&C was one of the leading builders in Iraq before the 1991 Gulf War, carrying

out many infrastructure construction projects. But re-entering the country was not

a priority. However, other companies are looking and preparing to enter Iraq than

its neighbour Iran, which still suffers from the impact of US sanctions.

Despite successfully shedding their ‘low-cost’ tag, competition in the market

remains intense and fewer landmark projects will come to the market. With waiting

advantage in risky market Korean contractors are ready to jump in and mix and

match to get a very good price.

6) Currency fluctuation

But Korean firms can also use currency fluctuations in their favour.3) One Korean

contractor, who preferred to remain anonymous, says he recently used the

difference in the exchange rate to win a competitive bid for a major oil project in

the region.

3) For example, exchange rate changed from $1 was equal to 1,000 won, to $1 is worth 1,300 won

during around mid of first decade during 2000. In actual favorable case of currency fluctuation

submitted currency rate was 1,490 won a dollar, but the contract rate was 1,345 won a dollar.


Ⅴ. Concluding Remarks

1. What they did

Korea’s first overseas construction project was a highway-building project in

Thailand in 1965. A construction boom in the oil-rich Middle East countries soon

followed, granting Korea an ample opportunity to accumulate various construction

experiences. Overseas building projects were a major source of foreign currency for

Korea during the country’s spectacular growth in the 1970s. Korean builders were

responsible for completing Libya’s huge waterway, dubbed the grandest civil

engineering feat in the 20th century, as well as a gas plant in Iran, and the

world’s tallest building in Dubai.

The comparative advantages of Korean companies are diminishing rapidly. They

will have less labor cost advantages and they will confront high technology barriers

which they must overcome for further development. The best solution for these

problems is to continue to seek out Western companies as well as local companies

and participate in joint ventures to develop their overseas business so that Korea's

outward looking economic development strategy can continue.

Korea’s overseas construction stalled somewhat in the 1990s because Korea’s

economic prosperity had inflated the wages of the construction workforce, dealing

the nation’s competitive edge in the global market. But Korea soon made up for

it with technological advances in construction, kicking off a renaissance of overseas

construction projects. As a result, Korea has gained 300 billion dollars in overseas

construction projects in the past five years.

The latest surge past the 500-billion-dollar mark was powered by the last five

years’ stellar performance. The Ministry of Land, Transport, and Maritime Affairs


expects that Korea will reap 100 billion dollars annually in overseas construction

deals in 2014 and rank among the world’s top five overseas builders. It is,

therefore, no surprise that construction projects in foreign countries take up a larger

share in the Korean economy. Domestic construction projects accounted for about

12% of the nation’s gross national income in 2006, but it fell to 8.3% in 2011,

while overseas projects rose from 2.0% to 5.2% during the same time period. Since

2007, the industry’s yearly order amount also overtook those of Korea’s flagship

exporters such as shipbuilders, automobile makers, and semiconductor

manufacturers.

2. Current Middle East market

Influencing from the decreasing demand due to the uncertainty of global

economic environment, construction market will maintain 3% modest growth trend

with oil revenue of oil rich countries.

According to the IMF forecasting the non oil sector will grow 4.5% in 2013 and

contribute 60% of ME economic growth. The current characteristics of Middle East

construction market are as the offensive marketing activities of European

companies, aggressive competition of late comers such as China, India and Turkey

are local companies improving competitive power. However Korean companies will

maintain growth trend by the accumulating experiences and strategies in Middle

East construction market.

3. Future Tasks

There are a number of challenges to overcome. Although more than 70% of

Korea’s overseas projects consist of highly lucrative plant-building works, Korea


still lacks in source technology. This means that other countries produce basic

designs and Korea is relegated to just executing the design plans. Consequently,

Korea has to resort to using imported parts and materials, which generally take up

60% of construction costs. It is urgent for Korea to possess source technology as

well as to boost the competitiveness of locally manufactured components to enjoy

a sustained growth in the overseas construction industry. Korean builders were able

to wean themselves off of a building boom based on cheap labor and make giant

strides in construction with cutting-edge building technologies. Now it’s time for

them to make another leap to the next level by developing source technologies.

Construction firms should make more efforts to diversify their overseas markets

to reduce their heavy dependence on the Middle East and secure more orders in

other rapidly growing emerging economies. The government has and will extend

more financial and other support to help builders advance into new markets and

win more deals as they are locked in intensifying competition with Chinese and

European rivals.


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SHIM, Ui Sup(1984), "Korean Construction in the Middle East, Seoul: Bub Mun Sa.

e 나라지표, http://www.index.go.kr [2013.10.18]International Contractors Association of Korea(ICAK), http://eng.icak.or.kr

[2013.10.18]

Date of Application: Aug. 16, 2013

Date of Screening: Oct. 10, 2013

Date of publication: Oct. 13, 2013


Appendix Monumental Projects by Korean Contractors

Type Country Project Name, project type contractamount

(US$ mln)

Constructionperiod

Refinery

Egypt ERC Hydrocracker Project 2,063 2007 ~ 2012

Saudi Arabia Yanbu Export Refinery Project (PKG 2~4) 2,241 2010 ~ 2014

Saudi Arabia Ruwais Refinery Expansion Project 6,401 2009 ~ 2014

Petro-chemical

Saudi Arabia Tasnee Ethylene 882 2005 ~ 2008

Saudi Arabia Kayan Petrochemical Complex Project 1,347 2007 ~ 2010

Omen Sohar Aromatics 1,181 2006 ~ 2009

Power &Desalination

Saudi Arabia Qurayyah IPP 2,118 2011 ~ 2014

Qatar Ras Laffan C IWPP Project 2,071 2008 ~ 2011

UAE Nuclear Energy Power Plant 18,600 2009 ~ 2020

UAE Fujairah Desalination &Power 800 2001 ~ 2003

Oil &Gas

Qatar Pearl GTL 1,293 2006 ~ 2010

Saudi Arabia Arabia Wasit Gas Program 2,426 2011 ~ 2014

Iran South Pars Gas Field (PhaseI~X) 3,457 1999 ~ 2005

Saudi Arabia Shaybah NGL Program 2,759 2011 ~ 2014

IndustrialChina Shandong Cement Plant 310 1995 ~ 2001

Brazil CSP Steel Plant Complex 4,339 2012 ~ 2015

Bridge Malaysia Penang Bridge 328 1982 ~ 1985

Irrigation Libya Great Man-made River (Phase Ⅰ,Ⅱ) 10,390 1984 ~ 2003

PortSaudi Arabia Jubail Industrial Harbour 931 1976 ~ 1980

Hong Kong Terminal 9 Development 510 2000 ~ 2004

Highway Pakistan Lahore-Islamabad Motorway 1,197 1992 ~ 1997

Railway Taiwan Taiwan High Speed Rail 1,177 2000 ~ 2004

Subway Singapore MRT (C 701, 703, 706, 711) 721 1997 ~ 2002

AirportSaudi Arabia King Fahad International Airport 116 1985 ~ 1987

Indonesia Hang Nadim Airport (Phase Ⅲ) 283 1993 ~ 1996

Complex Bldng. Malaysia Petronas Tower 227 1994 ~ 1997

Hospital Saudi Arabia Riyadh Hospital Complex 659 1984 ~ 1994

Hotel Singapore Marina Bay Sands Resort 686 2008 ~ 2010

New Town Vietnam Tay Ho Tay Development in Hanoi 902 2007 ~ 2011

Source: http://eng.icak.or.kr/kciw/kciw_03.php [2013.10.18].

Documents

Korea's Construction in the Middle East: Past, Present and ... · highway between Khayba and Alula ($24,059,000; Dec.1, 1973). It would be called as Middle East rush stage since the