Representative Yoon Hanhong Proposes Bill to Revitalize Local Construction Industry

“We Will Consider Various Measures to Revitalize the Local Construction Industry”

Yoon Han-hong, a member of the National Assembly from the People Power Party representing Masan Hoewon-gu, Changwon City, proposed revisions to the “Act on Contracts to Which the State is a Party” (hereinafter referred to as the State Contract Act) and the “New Port Construction Promotion Act” (hereinafter referred to as the New Port Construction Act) on the 8th, aiming to revitalize the local construction industry.

Yoon Hanhong, member of the People Power Party.

Recently, the construction market in Gyeongnam has fallen into a slump due to rising construction costs, contraction of project financing, and an accumulation of unsold properties. According to Statistics Korea, the number of construction workers in the Gyeongnam region in May was 81,000, a decrease of 17,000 (△16.7%) compared to the same month last year. This is the lowest figure in eight years and three months since March 2016, when it was 77,000. Since dropping below 90,000 in December last year, the number has remained in the 80,000s for six consecutive months, indicating a continued downturn in the construction sector.

The amendment to the State Contract Act, proposed by Representative Yoon, seeks to elevate the “Regional Mandatory Joint Contract System,” which was introduced to protect and foster local construction companies and revitalize the local economy, to the level of law and expand its scope of application. The Regional Mandatory Joint Contract System requires that at least one local company participate as a member of a joint supply consortium in construction bids. Currently, this is regulated by the enforcement decree and contract guidelines of the same law.

The amendment to the New Port Construction Act stipulates that, in relation to contracts for construction, goods, and services for new port projects such as Jinhae New Port, preference can be given to local companies whose main offices are located in the jurisdiction or nearby local governments of the planned new port construction area. If these two proposed amendments are passed, it is expected that they will provide some relief to local construction companies struggling with the downturn in the construction market.

Representative Yoon stated, “Given the significant impact of the construction industry on the local economy, it is necessary for the state and public institutions to take an active role in revitalizing the construction market,” adding, “We will continue to seek various measures to promote the construction industry, such as expanding local companies’ participation in projects and securing orders.”

This content was produced with the assistance of AI translation services.