Port storage facility-inland distribution base support
Issues such as public safety concerns, public reluctance, etc.
Aggregate extraction – foreign workforce regulations also eased
The government supports the import of cement, a key material for construction work. If a company imports cheap cement from China, etc., the company will simplify the process and ease the cost burden. There are concerns that if the quality of Chinese cement, which has never been imported before, is not properly verified, it could pose a threat to public safety. It is pointed out that the relaxation of regulations on aggregate extraction and the supply and demand of foreign workers, which were also announced, has limitations as a measure to reduce construction costs.
On the 2nd, the government announced a ‘construction cost stabilization plan’ containing these contents at a meeting of economic-related ministers chaired by the Deputy Prime Minister for Economic Affairs. The measure was introduced as construction costs soared by about 30% from 2020 until July of this year, causing problems such as delays in the supply of new housing, rising sales prices, and a contraction of the construction economy.
The most notable thing is the cement import support plan. If a private company pursues importing cement from overseas, the government will shorten the licensing process for installing cement storage facilities in ports and support the use of distribution bases owned by Korea Railroad Corporation (KORAIL). They said they would strictly control quality, such as only allowing the import of cement certified by the National Standard (KS).
This is to solve the oligopoly problem. The government believes that even though the price of cement raw materials has fallen, cement prices have not fallen due to the oligopoly system. The price of bituminous coal, which accounts for more than 25% of cement costs, peaked at $87 per ton in July 2021 and $246 in March 2022, then fell to $90 in July this year. However, cement prices jumped 42.1% from 78,800 won per ton in July 2021 to 112,000 won in July this year. The estimated import price of Chinese cement is in the mid-90,000 won range per ton, which is 10,000 to 20,000 won cheaper than domestically produced cement.
However, experts believe that there are many issues that need to be resolved, such as controversy over the quality of Chinese cement and public resistance. Park Cheol-han, a researcher at the Construction Industry Research Institute, said, “The pressure to increase prices can be reduced only when the quality of Chinese cement is supported and a distribution network is established.”
Regulations on aggregates, which account for 20% of the cost of ready-mixed concrete, will also be lifted. It was decided to change the acceptance standard for sea aggregate extraction from the total amount to the actual amount used. We also plan to expand areas where aggregates can be collected from land, such as forests. It was also decided to relax regulations on on-site movement of foreign personnel, which are prohibited in principle. With the goal of a pilot project next year, we are also pushing for the introduction of visas for skilled foreigners only for engineering jobs that Koreans avoid. In order to solve the problem of repeated failed bids due to the failure of public construction projects such as major infrastructure to reflect the rapidly rising construction costs, we plan to announce a plan to realize public construction costs within the year.
Reporter Kim Ho-kyung [email protected]
-
- great
- 0dog
-
- I’m sad
- 0dog
-
- I’m angry
- 0dog
-
- I recommend it
- dog
Hot news now
2024-10-04 02:31:48