“At least 40% of construction costs to go to local businesses”: Gangneung signs agreement with three apartment construction projects

【Financial News Gangneung = Kim Gi-seop, Reporter】Of the 450 billion won in construction costs for three apartment construction projects in Gangneung, 180.1 billion won will go to local contractors and to labor, materials and equipment.
According to Gangneung City on the 26th, the city signed an agreement that day at 2 p.m. at City Hall with developers and construction companies, stipulating mandatory participation by local businesses at apartment construction sites. The aim is to create more opportunities for local businesses to take part in large-scale investment projects, make Gangneung a good place to do business, and revitalize the local construction industry through mutual cooperation.
The agreement covers three apartment construction projects being carried out by private developers. Each site must allocate at least 40% of its total construction costs to local businesses. Under the agreement, about 180.1 billion won will be invested locally.
The agreement calls for expanding the participation of local construction companies, including through subcontracting, and prioritizing the use of construction equipment, materials and products made locally. It also stipulates that local residents should be given priority when hiring workers for the sites. The city plans to apply these principles across the large-scale investment projects it is actively pursuing, including hotels, condominiums, golf courses and apartments.
Since 2022, the city has continued efforts to increase local business participation by signing agreements with nine apartment construction projects within its jurisdiction.
Gangneung Mayor Kim Jung-nam said, “This commitment to entrust at least 40% of construction costs to local businesses will give the frozen local construction industry room to breathe. I will continue expanding these agreements to major investment projects such as hotels, condominiums and golf courses, and devote myself to growing the local construction industry and creating jobs.”

[email protected] Kim Gi-seop Reporter