SEJONG: Overseas construction orders won by South Korean builders this year fell sharply from a year earlier due to weak demand from the Middle East countries hit hard by low global oil prices, the government said Thursday.
Local builders clinched a combined US$46.1 billion worth of overseas construction contracts for the whole of 2015, down 30.1 percent on-year from $66 billion, according to the Ministry of Land, Infrastructure and Transport.
Construction orders from the Middle East, traditionally the largest market for South Korean builders, plunged 47.2 percent to $16.5 billion from $31.4 billion in the same period last year.
The price of Dubai crude, which accounts for about 80 percent of South Korea’s overall oil imports, has been on a steep decline since May, amid oversupply concerns. It was $65.63 per barrel on May 6 but slid to an 11-year low of $31.82 per barrel on Dec. 21.
The ministry said orders from Asian countries, on the other hand, jumped 23.9 percent on-year to $19.7 billion from $15.9 billion. Orders from Pacific and North American states amounted to $3.65 billion in the January-December period, slightly up from $3 billion a year earlier.
The ministry said local builders will likely continue to struggle from low oil prices and geopolitical issues in the Middle East region next year, with the global economy expected to remain sluggish.
