Journal of the Korea Institute of Building Construction (한국건축시공학회지)

The Korean Institute of Building Construction (한국건축시공학회)
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Analysis of the Capability of Korean Construction Companies for International Investment Development Business

  • Jang, Hyoun-Seung (School of Architecture, Seoul National University of Science and Technology) ;
  • Kim, Hwa-Rang (School of Architecture, Seoul National University of Science and Technology)
  • Received : 2012.08.07
  • Accepted : 2013.02.19
  • Published : 2013.04.20
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Abstract

Korean overseas construction has been on the rise, and exceeded the 2011 goal of $50 billion by securing $59.1 billion in orders. However, these orders were heavily concentrated in the Middle East (50%) and plant construction contracts (75%). This study suggests that, to maintain growth in foreign markets, Korea construction companies should enter into the high value-added investment development business and aggressively seek ways to diversify their regions of activity and construction types. To secure the entry of Korean construction companies into lucrative markets and better understand the competitive factors facing Korean construction concerns, a survey of the literature and focus group discussions targeting relevant experts were carried out. From those efforts, a list of 44 competitive factors crucial to entering and competing in the international investment development business was developed. Survey responses were analyzed by applying IPA. The results revealed that while Korean concerns compete well in engineering/technical capabilities, maintaining a cooperative relationship with contractors, and warranty/after sales service capabilities, their ability to obtain business information on the target country, to form private/public cooperative systems, and to build international human networks require immediate improvement.

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