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The Busan Metropolitan City Holds Meeting with Experts and Construction Industry to Address Sector Crisis

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On April 18, the Busan Metropolitan City held the “Meeting of Experts and Construction Industry Representatives to Overcome the Construction Sector Crisis” in the conference room on the 26th floor of City Hall, chaired by the Director-General of the City-wide Innovation and Balance Office.

This meeting was a follow-up to the “Local Construction Economy Revitalization Strategy Meeting” held in February. It was organized to gather direct input from the field and devise comprehensive measures to reinvigorate the region’s struggling construction sector.

Meeting Overview

• ●Date/Time: Friday, April 18, 2025, at 14:00

• ●Venue: 26th Floor Conference Room, Busan City Hall

• ●Participants:

• ○Chair: Director-General of the City-wide Innovation and Balance Office

• ○Officials: Head of Construction Administration Division

• ○Experts: Korea Institute of Construction Industry, Busan Research Institute, university professors, Korea Housing and Urban Guarantee Corporation

• ○Industry: Representatives from general, specialized, and construction equipment companies

• ●Format: Kick-off session; expert and industry consultation; future meetings to be held as needed

• ●Main Agenda: Listening to field and expert opinions and discussing comprehensive countermeasures to stimulate the local construction economy

According to national data from February this year, construction orders stood at KRW 11.3 trillion, the lowest for February in the past six years. Due to this decline in construction volume, employment in the sector has been decreasing for ten consecutive months since May of last year.

In the housing sector, unsold new homes in Busan have surged by 186% compared to the five-year average, while unsold completed units have risen by 215%—both reaching the highest levels in the past decade.

With growing political and global uncertainties, even ongoing projects are expected to slow down, accelerating the local construction slump.

During the meeting, the City discussed various topics with experts and industry representatives, including:

• ●Boosting public and private construction project volumes

• ●Enhancing participation by local subcontractors

• ●Financial support mechanisms for the construction sector

Industry stakeholders emphasized that increasing project volume is important, but equally essential is adjusting construction costs to realistic levels. They also recommended focusing on small and mid-sized projects and maintenance work.

Subcontractors pointed out the need for timely project execution, proposing early project ordering and swift fund allocation tailored to the construction industry's unique timeline.

Moreover, concerns were raised over unpaid construction costs due to unsold housing, and a call was made for institutional measures to address this issue.

Experts suggested that major construction projects aligned with Busan’s vision as a global hub city—through public-private cooperation—should be actively pursued. They also stressed the importance of streamlining permitting processes and providing support to projects that have yet to break ground.

Lim Kyung-mo, Director-General of the City-wide Innovation and Balance Office, stated:

“This meeting was urgently convened to address the crisis facing the construction sector and to reflect on the City’s role. We plan to incorporate the voices of experts and field workers into our future response measures and will hold further meetings as needed.”