Jeonbuk State Seeks Ways Forward for the Construction Industry with the Ministry of Land, Infrastructure and Transport (MOLIT)

[Financial News | Jeonju — Reporter Kang In] Jeonbuk State has joined forces with MOLIT to seek ways forward for the local construction industry, which is struggling amid the prolonged downturn in the construction market.
According to Jeonbuk State on the 4th, officials from MOLIT recently attended a meeting at the Jeonbuk State Government Office to discuss ways to revitalize the local construction industry.
The two agencies shared the results of institutional improvements and key issues related to revitalizing the local construction industry. They also discussed ways to expand local construction companies' opportunities to participate in projects.
Jeonbuk State shared its achievement of revising the Jeonbuk Special Self-Governing Province Ordinance on Promoting the Revitalization of the Local Construction Industry in May, raising the recommended subcontracting ratio for local companies from 60% to 70%. It also explained that an amendment to the Enforcement Decree of the Saemangeum Project Act, which took effect on September 22, added construction engineering services to the categories eligible for preferential treatment for local companies. As a result, around 200 related companies in the province gained expanded opportunities to participate in Saemangeum projects.
Jeonbuk State also asked MOLIT to address eight tasks, including separating large-scale construction projects into separate contracts and easing the criteria for contract amount adjustments, so that these institutional improvements can lead to a tangible increase in orders for the local construction industry.
The requests included rationalizing fact-finding standards for bidder qualifications in public works tenders; providing tax support to address unsold homes in non-metropolitan areas; permanently operating special provisions under the National Contract Act and related regulations; completing key Saemangeum infrastructure on schedule; and expanding the implementation of LH purchase-commitment rental housing.
Jeonbuk State plans to share the issues discussed at the meeting with cities, counties, and the regional construction associations federation. It will also continue consultations with MOLIT so that the key requests can be reflected in government policies.
A Jeonbuk State official said, "Given the difficult circumstances facing the local construction industry, it is important to listen to voices from the field and develop practical support measures." The official added, "We will continue working with MOLIT to expand local companies' opportunities to win contracts and inject vitality into the construction industry."


[email protected] Kang In Reporter