This archive photo, provided by Daewoo Engineering & Construction Co. on October 8, 2020, shows the Kazungula Bridge over the Zambezi River which connects Botswana and Zambia and was built by the South Korean company (Daewoo Engineering & Construction Co .)
The government has unveiled a comprehensive package to support local builders as the overseas construction market is expected to rebound this year after recessions caused by the COVID-19 pandemic, according to the finance and land ministries.
The global construction market is estimated at $ 12.4 trillion this year, up 12.2% from the previous year against a backdrop of global economic recovery.
Korean automakers landed overseas orders worth $ 35.1 billion last year, up from $ 22.3 billion a year earlier. But they secured overseas orders worth $ 14.7 billion in the first six months of the year, down 9% from a year earlier in the face of the protracted pandemic, according to the government.
To support Korean carmakers’ push abroad, the Export-Import Bank of Korea, a state-run political lender, plans to expand lending and reduce borrowing rates or commissions.
Bank will push to open $ 5 billion line of credit to Abu Dhabi National Oil Co., one of the world’s largest oil producers, to help more Korean companies win projects infrastructure construction in the United Arab Emirates (UAE). The lender will seek to open similar lines of credit with oil companies in the Middle East.
The government will also encourage state-owned enterprises to participate in massive overseas development projects with the aim of inducing more South Korean enterprises to foray into foreign countries.
The government has said it will support the foray of local builders into the U.S. construction market, as new investment opportunities will open up with the U.S. administration’s $ 1.2 trillion plan to expand investments in infrastructure projects.
The country will also extend COVID-19 vaccinations to businessmen who will be traveling abroad.
The government will adopt an “accelerated” vaccination program for businessmen who plan to travel abroad urgently, under which vaccinations will be completed within one month of the request from the three months current. (Yonhap)