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Subject [Card News] Airways that had Dwindled have Fully Rebounded
Upload Date 2024-02-28 Source MOLIT News
Name Annie Hyunsuk KIM Inquiry 227
pic 1. Smart City Toward the World by - Establishing Comprehensive Support System to Pursue Packaged Export

pic 2. Overseas Construction Trends by Korean Companies 1 - 1. Rapid increase of investment in the USA in line with the Inflation Reduction Act (IRA) of the country, 2. Concentrated on eco-friendly plant items such as new and renewable power generation and energy storage systems, 3. Sluggish recovery of low -income countries and its decreasing level of interest by Korean companies after the COVID-19

pic 3. Overseas Construction Trends by Korean Companies 1 - Two representative examples. 1. Hyundai E&C and SK Ecoplant participated in the Texas Concho Solar Power Generation project in the USA, and the total project budget is 510 USD million. Overseas construction orders are 440 USD million, and KIND investment is 18 USD million. 2. Korea Southern Power and LS Electric participated in the USA's Construction & Operation of Texas Runnels BESS project, and the total project budget is 117 USD million. Overseas construction orders are 103 USD million, and KIND investment is 50 USD million.

pic 4. Implication of the Trends - 1. Expanding Korean companies into the regions with stable financial capabilities of ordering country 2. Seeking for the more advantageous markets through the analysis of the related international environment 3. Focusing on construction projects with ease of project financing such as new & renewable power plants, etc.

pic 5. Overseas Construction Trends by Korean Companies 2 - Activation and recommencement of large-scale urban development projects worldwide in areas other than new & renewable energy - 1. 2 mega-scale new urban center development projects including NEOM in Saudi Arabia and New Capital City in Indonesia 2. Opportunities for reconstruction projects in Ukraine 3. Signs of recommencing projects such as Bismayah in Iraq and Abdullah in Kuwait where our private companies & public corporations have already been pursuing - Needed to actively expand abroad for Korean companies with urban development projects in response to such trends -

pic 6. Why overseas urban development?, Why smart city construction? 1. Opportunities for smart city development and urban regeneration projects continue to exist irrespective of the national income level 2. Korea has extensive range of experiences of having pursued overseas new city, estate and building scale projects by large and mid-sized corporations, and SMEs 3. Examples of support for thousands of cases including policy consultation related to urban development/establishment of plans, and establishment of urban plan through systems customized for each country 4. Korea has domestic experiences of having successfully completed diversified urban development including rapid economic growth and urbanization, construction of new cities and national pilot smart city, etc. - Completed preparation for overseas urban development -

pic 7. Issues of the MOLIT to Support Overseas City Development Projects by Korean Companies 1. Majority of urban developments are pursued as an investment development type project for which private sector investments are mobilized due to their huge scale. 2. Then, what should the government consider? (1) Means of strengthening the financial and credit ratings of the ordering country (2) System and instrument to reduce risk or increase profitability (3) System and instrument to enable project financing to be brought in more easily - In consideration of the above, MOLIT supports Korean companies in pursuing overseas investment development projects -

pic 8. Pursue of Comprehensive Support for Packaged Overseas Expansion of Smart City Projects 1. Smart city is a platform that can provide diversified overseas expansion opportunities to construction industry and IT/electronic industries 2. For overseas expansion of smart city MOLIT will... (1) Elevate the possibility of execution of the tasks of the partner countries and provide support for negotiation of Korean companies from the side through fortification of G2G cooperation (2) Discuss new system establishment specialized for overseas urban development with relative support institutions such as KIND, Export-Import Bank of Korea, and Korea Trade Insurance Corporation, etc. (3) Establishment of means of de-risking by the public sector to help ensuring Korean companies preserve their investment profit rates - Plans to put continuous endeavor to set up comprehensive support system -

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