BMI's Executive Summary

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After an impressive bounce-back from the 1997 financial crises that hit East and South East Asia, the Republic of Korea (South Korea) is now on its way to becoming one of the most industrialised nations in the world. The construction industry – which has been a major foreign-exchange earner for the country – was valued at US$53.26bn in 2006, and accounted for 6% of the Gross Domestic Product (GDP). This report forecasts the industry to grow at 3% per annum during 2008-2012.

Overseas contracts form the mainstay of the South Korean construction industry. Some of the world's largest international contractors, including Hyundai Engineering & Construction, Daewoo Engineering & Construction and Samsung Engineering & Construction are based in the country. A South Korean construction consortium has entered into interim deals worth more than US$25bn for infrastructural development in Iraqi Kurdistan. Major projects in the pipeline in South Korea include the construction of world's largest tidal power plant, construction of two 77-storey World Trade Centre (WTC) buildings in the Incheon Free Economic Zone, and the Seoul expressway project. The government has also committed US$31.3bn for the development of power plants in the country and US$22.9bn for upgrade of facilities of schools and soldiers' apartments during 2006 to 2008.

Since its recovery from the Asian financial crises, the Republic of Korea has been encouraging foreign investment. Currently, there are no major barriers to entry. However issues such as over-reliance on overseas contracts and inflationary pressures on the economy due to high crude oil prices may require some attention.

BMI believes that future growth will be driven primarily by increased demand from China and Europe. Possible Free Trade Agreements (FTA) with the US and European Union (EU) may also benefit the country's construction industry which is forecast to reach KRW69.70trn (US$65.67bn) by 2012, accounting for nearly 6% of the GDP.

Contents

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Chapter 1 – Industry Trends And Development

Market Overview

South Korean Economy In 2006

South Korea's Construction Sector In 2006

Major Companies

Korean Overseas Investment

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: South Korea Major Infrastructure Projects

Chapter 3 – Business Environment Ranking

Introduction

Table: Asia Business Attractiveness Ranking

Business Attractiveness Rankings — Methodology

Regional Overview

South Korea Business Environment Ranking

Economics — Long–Term Risk

Politics — Long–Term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

South Korea Infrastructure Industry SWOT

South Korea Economic SWOT

South Korea Political SWOT

South Korea Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Construction Industry, Historical Data And Forecasts

Risks

Chapter 6 – Macroeconomic Outlook

Table: GDP, Output And Population

Chapter 7 – Competitive Landscape

Table: South Korea Infrastructure Key Players

Chapter 8 – Company Profiles

Daewoo Engineering & Construction

Hyundai Engineering & Construction

Samsung Engineering & Construction

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Asia Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Asian Infrastructure Sources

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BMI's Asian Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include: