South Korean construction firms are achieving robust performance in overseas construction orders this year, with the International Contractors Association of Korea reporting that orders from January to August reached an impressive $21.93 billion, marking a nearly 20 percent increase compared to the same period last year when it was $18.3 billion.
A closer look at the cumulative order amounts reveals a dynamic trend. In January, orders amounted to $660 million, followed by $4.16 billion in February, $6.11 billion in March, $7.77 billion in April, and $8.67 billion in May, falling short of the previous year’s figures until May when it stood at $10.3 billion. However, June marked a turning point with record-breaking orders of $17.29 billion, surpassing the previous year’s $12.04 billion. This momentum continued into July with $19 billion and August with $21.93 billion, propelling overseas construction orders to exceed $20 billion for the first time since 2018 when it reached $20.4 billion.
A significant driver behind this stellar performance has been Hyundai Engineering & Construction’s successful bid for a massive project in Saudi Arabia in June. Hyundai E&C secured a $5 billion contract from Aramco, the state-owned petroleum company in Saudi Arabia, for a petrochemical complex. This contract represents the largest ever awarded to a South Korean company in Saudi Arabia and ranks as the 7th largest project secured by a South Korean firm in history. Notably, the Middle East region, thanks to this achievement, contributed a substantial $7.41 billion in orders, more than doubling the previous year’s figures, and accounting for the largest share of orders at 33.8 percent among various regions.
In North America and the Pacific region, orders primarily focused on construction, totaling $7.34 billion with a share of 33.5 percent. Meanwhile, in Asia, orders centered around industrial facilities and construction, amounting to $4.3 billion with a 19.6 percent share.
Given the strong order performance recorded through August, there is growing anticipation as to whether this year will witness overseas orders exceeding $30 billion. Since 2020, annual overseas order performance has consistently surpassed the $30 billion mark. With the current favorable order results, it is expected that this trend will continue, leading to the smooth achievement of the $30 billion milestone.