Launched on the 14th, Ministry of Land, Infrastructure and Transport “Communicates for coexistence of industries and revitalization of construction economy”
With construction costs skyrocketing, the government is launching a public-private consultative body to stabilize construction material costs.
As a follow-up measure to the ‘Construction Cost Stabilization Plan’ announced on the 2nd, the Ministry of Land, Infrastructure and Transport announced that it plans to hold a launch meeting of a public-private consultative body to stabilize the supply and demand of construction materials on the 14th.
In the meantime, the government has supported the stabilization of the construction materials market by holding industry meetings on a regular basis to stabilize the supply and demand of major construction materials such as cement and ready-mixed concrete.
However, as the risk of a surge in construction costs due to instability in the supply and demand of materials is likely to recur at any time, the government plans to actively respond by forming a supply and demand stabilization council to stably manage this risk.
The supply and demand stabilization council will be operated with a focus on supporting autonomous consultation between consumers and suppliers in major construction materials markets and resolving industry difficulties. The consultative body launched on this day will discuss the cement and ready-mix concrete sectors, where prices have recently risen sharply.
According to the Ministry of Land, Infrastructure and Transport, the price of type 1 ordinary cement, which was 75,000 won per ton in July 2020, surged 49.3% (37,000 won) to 112,000 won as of July this year. During this period, the unit price of ready-mixed concrete in the metropolitan area increased by 41.3% (27,400 won) from 66,300 won per ㎥ to 93,700 won.
Ready-mixed concrete takes up the largest share in all construction projects. Cement is a raw material for ready-mix concrete, and is a material of great importance in stabilizing the supply and demand of materials, considering its impact on products that use cement other than ready-mix concrete.
The industry agrees with the government-wide efforts to revitalize the construction market and expresses its position that it welcomes the establishment of a forum for communication between the government and the industry, while explaining the difficulties necessary to stabilize the materials market and making recommendations for industry support. Information will be communicated.
In particular, the cement industry plans to propose easing regulations to ease the burden on the industry due to strengthened environmental regulations.
In addition, the ready-mix concrete industry is planning to suggest improvement of the construction equipment supply and demand control policy related to the supply and demand of ready-mix concrete mixer trucks, and the construction industry is planning to suggest the need to stabilize cement and ready-mix concrete prices.
Kim Sang-moon, Director of Construction Policy at the Ministry of Land, Infrastructure and Transport, said, “Today’s council is the first meeting held since the announcement of the construction cost stabilization plan, and the supply and demand stabilization council has established itself as a center of cooperation and dialogue to stabilize the construction materials market, and to promote coexistence between industries and revitalize the construction economy. “We ask for active cooperation and close communication from each industry so that we can contribute,” he said.
At the same time, he said, “We will quickly resolve the difficulties raised by each industry and actively operate a public-private consultative body with related ministries to stabilize the construction materials market.”
(Sejong = News 1)