Daejeon, South Korea – Daejeon City has announced a substantial increase in local subcontracting for private large-scale construction projects in 2024. According to a recent analysis of 86 construction sites, the total contract value for local subcontractors reached 2.9321 trillion won, with a subcontracting rate of 66%.

Compared to 2023, the total contract value for local subcontractors in private large-scale construction projects exceeding 3,000 square meters increased by 274.9 billion won, while the subcontracting rate remained stable.

Despite a decrease in the number of construction sites in the fourth quarter of 2024, the subcontracting rate rose by 0.6% compared to the previous quarter, and the net profit increased by 150.4 billion won to 514.7 billion won.

Notable projects with significant local subcontracting include the Dunsan-dong officetel (Daewoo Construction), Seongnam 1-gu redevelopment project (Umi Construction), Bongmyeong-dong Hillstate Yuseong (Hyundai Construction), Daeheung 2-gu redevelopment project (KCC Construction), and Munhwa 8-gu redevelopment project (SK Ecoplant). These projects demonstrated the effectiveness of awarding major construction work to local companies.

The city has been actively promoting the participation of local companies by strengthening communication with construction companies, conducting interviews with head office executives, and holding regular briefings. Furthermore, the city has continuously conducted on-site inspections of projects with low subcontracting rates and urged improvements.

A Daejeon City official stated, "To overcome the difficulties in the construction industry and expand the participation of local companies, we plan to hold regular quarterly briefings with construction companies and strengthen on-site inspections with city and district officials and quality inspection experts. We will provide active support to benefit many local companies."

[Copyright (c) Global Economic Times. All Rights Reserved.]