Engineering Services
Republic of Korea
Overview
2004 2005 2006 (estimated)
Total Market Size 4,732 4,889 5,046
Total Local Production 4,919 5,083 5,252
Total Exports 325 336 346
Total Imports 138 142 147
(Unit: USD Million)
(Source: The above statistics are unofficial estimates based upon reports from Korea Engineering and Consulting Association and Construction & Economy Research Institute of Korea.)
[USD 1= 1,200 Won (2004), 1,100 Won (2005), 950 Won (2006)]
The Korea engineering services market has been driven by demands from three diverse, yet closely linked construction sub-sectors: Korean government-initiated infrastructure projects, residential buildings and commercial/industrial facilities. The construction industry has grown over the past several years due to the continued strength of these three sub-sectors. In 2005, Korea’s spending on government infrastructure projects was estimated at USD 38 billion. Korean residential construction was estimated to be USD 52 billion while Korean investment in commercial/industrial facilities stood at USD 32 billion. In 2006, the size of these construction markets is forecast to slightly increase 0.4% due to increased residential redevelopment and government projects, estimated at USD 100 billion.
The Korean engineering services market will continue to seek new engineering technologies available in such markets as the United States. Foreign engineering firms have been filling the important gap between the lack of domestic availability and U.S. products. Key engineering technologies will be in demand for tourism infrastructure, information & telecommunications, urban planning, water supply, sewage and waste treatment and disposal, earthquake-proof buildings, and industrial processing facilities. As the Korean engineering services market evolves, the demand for technically advanced services will rise, creating additional demand for creative and innovative services and technologies from the U.S, Europe, and Japan. U.S. engineering firms working in Korea are well positioned to expand their activities to Korea, given the popularity of U.S. services and technologies.
Best Products/Services
- Engineering consulting
- Urban planning
- Project management
- Structural/mechanical engineering services
- Earthquake-proof engineering
Opportunities
New Songdo City development project --- Construction of International Business Complex, High-Tech Industry Park and Biological Industry Complex.
Incheon International Airport Project Phase II --- Construction of a runway, a passenger terminal and cargo terminals.
Incheon Bridge Construction – Bridge linking Incheon International Airport with New Songdo City, measured 10.25 kilometers in length and 75 meters above sea level.
Seoul Subway Line No. 9 Project Phase II --- Construction of a 12.5 kilometers subway in southeast area of Seoul.
Digital Media City (DMC) project in Seoul --- Construction of a high-technology media, entertainment and information technology industry complex.
Resources
Trade Shows
N/A
Key Contacts
Ministry of Construction & Transportation
Seoul Metropolitan City Government
Incheon Metropolitan City Government
Gyunggi Provincial Government
Construction Association of Korea
Korea Engineering & Consulting Association
Korea Institute of Construction Technology
Construction & Economy Research Institute of Korea
Local Contact
Nathan Huh
Commercial Specialist
Commercial Service Korea
U.S. Embassy
32 Sejong-ro Jongro-gu
Seoul 110-710 Korea
Tel: 82-2-397-4130
Fax: 82-2-737-5357
E-mail: nathan.huh@mail.doc.gov
Website: www.buyusa.gov/korea