"We Won’t Leave It to the Industry Alone": Gangwon State Takes Direct Action to Revive the Local Construction Sector

【Financial News Chuncheon=Reporter Kim Ki-seop】Gangwon State is joining forces with the local construction industry to visit major public ordering agencies directly and expand local companies’ opportunities to win contracts.
According to Gangwon State on the 9th, the state and the construction industry will jointly visit public ordering agencies within this month to promote local companies and request greater participation in joint contracting and subcontracting, as well as expanded use of local materials, equipment, and labor. The initiative aims to connect the growing volume of construction work in the region with actual contracts for local companies and regional economic growth. In October, Governor Woo Sang-ho plans to meet directly with the heads of major public ordering agencies to review the issues discussed during the visits and seek mutually beneficial cooperation measures.
The scale of construction orders is growing. According to the Korean Statistical Information Service (KOSIS), Gangwon’s construction orders totaled 2.7791 trillion won in the first half of this year, up 39.6% from 1.9910 trillion won during the same period last year. Expectations for securing public projects are also rising, as the government’s proposed budget for next year’s social overhead capital (SOC) sector includes 2.4243 trillion won, an increase of 61.5 billion won, or 2.6%, from this year.
Gangwon State believes that the expansion of construction investment should lead not only to an increase in the volume of projects but also to more work and sales for local companies. Its plan is to connect the increased volume of projects with local participation in joint contracts and subcontracts, along with the use of local materials, equipment, and labor, so that the benefits spread throughout the regional economy.
The state also plans to make use of the revised contracting system. Following an amendment in April that expanded the scope of region-restricted competitive bidding for public enterprises and quasi-governmental institutions to projects with an estimated price of less than 15 billion won, Gangwon State will ask agencies during the visits to actively apply the revised system so that it leads to tangible opportunities for local companies to win contracts.
The organizations to be visited include eight major public ordering agencies, such as the Wonju Regional Office of the Ministry of Land, Infrastructure and Transport, the Gangwon Regional Headquarters of Korea National Railway, and the Gangwon Regional Headquarters of Korea Expressway Corporation. As the first step, the director of the Construction and Transportation Bureau and representatives of local industry, including the Korea Construction Association and the Korea Specialty Contractors Association, will visit the Gangwon Regional Headquarters of Korea Rural Community Corporation on the 14th to discuss ways to expand local companies’ participation. They will then visit the Wonju Regional Office of the Ministry of Environment on the 15th and the Gangwon Regional Headquarters of Korea National Railway on the 22nd, among other agencies.
The September visits will lead to a joint response led by the governor in October. Gangwon State will hold a meeting with the heads of public ordering agencies, chaired by the governor, to discuss cooperation among the state, the local construction industry, and ordering agencies. Based on the results of the September visits, the state plans to pursue mutually beneficial agreements to expand the use of local companies and establish a lasting cooperation system beyond one-time requests for assistance.
Woo Sang-ho, governor of Gangwon State, said, "The administration will visit ordering agencies directly and create even more opportunities for local companies to participate." He added, "We will play an active role in ensuring that construction investment taking place in Gangwon leads to work for local businesses and vitality for the regional economy."

[email protected] Kim Ki-seop Reporter