S. Korea Overseas Construction Orders Fall to 10-Years Low

The global low oil prices are partially to be blamed for the drop of the South Korean overseas construction orders. The drop of orders, usually placed by the oil-producing countries in the Middle East caused a dip to a 10-year low, market data showed Monday. 
In 2016, overseas construction orders clinched by South Korean builders amounted to some US$28.19 billion, the lowest since $16.47 billion posted in 2006, according to the data compiled by the International Contractors Association of Korea. 
Such a drop was partly attributed to a sharp decline in orders placed by Middle Eastern countries, previously the world's largest market for South Korean construction firms, state news agency (Yonhap) reported. 
Construction orders from Middle Eastern countries had easily accounted for more than 70% of all overseas orders won by builders here. Amid a steady decline in overseas orders, local builders are apparently being forced to shrink their overseas business. 
"The government plans to focus its support for the development of new business models based on self-financing," an official from the Ministry of Land, Infrastructure and Transport said. 
"The country will be able to post a positive growth in overseas construction orders this year if our businesses too focus on new and more lucrative business models instead of focusing on simple contract projects," the official added.