south-korean-builders-surpass-1-tn-in-deals

South Korea has reached a significant milestone with its overseas construction deals surpassing $1 trillion.

 

This accomplishment, announced by the country’s transport ministry, marks 59 years since Hyundai Engineering & Construction Co. secured its first international contract to build an expressway in Thailand in November 1965.

 

According to the International Contractors Association of Korea, South Korean builders accumulated a remarkable $32.69 billion worth of overseas orders between January and November 2024.

 

By the end of November, the total value of these international construction projects had reached $996.5 billion. Although the data for December is not yet available, the Ministry of Land, Infrastructure, and Transport confirmed that the country's overseas orders crossed the $1 trillion threshold during the month.

 

Saudi Arabia has emerged as a major market for South Korean construction firms, accounting for nearly half of the country’s overseas deals in 2024. Despite failing to meet its annual target of $40 billion in 2024, South Korea's total overseas construction orders reached their highest level since 2015.

 

In that year, the total value of overseas construction deals stood at $46.1 billion, the ministry noted.

 

In addition to growth in Saudi Arabia, South Korean builders have also seen significant gains in the Middle East. Domestic construction companies collectively secured nearly $10 billion worth of orders from the region in 2024.

 

This represents an impressive increase from 2023, where orders from the Middle East were significantly lower.

 

During the January to May period of 2024, South Korean builders secured $9.98 billion in orders from the Middle East, which marked a dramatic sixfold increase from the $1.5 billion recorded during the same period in 2023.

 

This surge in orders is largely attributed to major projects won by key companies, including Samsung E&A Co., formerly known as Samsung Engineering Co., and GS Engineering & Construction Co.

 

These firms secured a $7.3 billion project in Saudi Arabia in April, contributing to the record growth in the region.

 

As a result of this robust performance in the Middle East, the total overseas orders for South Korean builders between January and May 2024 reached $13.64 billion, the highest for this period since 2020.

 

This continued success underlines the growing influence of South Korean construction companies on the global stage and their ability to secure major projects across the world.