Changing Trends Of Korean Contractors

There has been a notable reduction in the number of international construction contracts awarded to Korean contractors in recent years, following a record-high period of growth between the years of 2009-2012.

This has resulted in many Korean contractors experiencing an 'earnings shock', i.e. lower income than predicted, from 2013 to date.

This is due to several factors, including:

• Many contracts being won on a low bid value, due to high competition among Korean contractors;
• Overcommitment in contract obligations;
• Shortage of specialised manpower required to execute the secured projects;
• Lack of project management skills;
• Inadequate risk management capabilities;