Construction Industry Daily Briefing — 2026년 5월 28일
A collapse at the Seosomun Overpass demolition site in Seoul left 3 dead and 3 injured. Meanwhile, major construction firms are raising subcontracting rates by 134.3 billion won to offset rising material costs caused by Middle East tensions. Overseas contract volume for January-April dropped 72.3% year-on-year, with a sharp 91.7% decline in the Middle East.
Construction Industry Daily Briefing — 2026-05-28
Major Orders and Industry Trends
Overseas construction crisis deepens as orders plummet by 72%
Domestic construction companies have taken a major hit, with overseas contract values dropping 72.3% year-on-year from January to April. The Middle East, traditionally a key market for these firms, saw a staggering 91.7% plunge. Factors like instability in the Strait of Hormuz, delays in material procurement, rising logistics costs, and increased war risk insurance premiums are severely undermining the competitiveness of these firms in the bidding process.
Site Accidents and Construction Issues
Seosomun Overpass collapse: 3 dead, questions raised over safety culture
On the afternoon of May 26, a structural collapse occurred at a demolition site for the Seosomun Overpass in Seodaemun-gu, Seoul, resulting in 3 deaths and 3 injuries. Occurring near the final stages of demolition, this accident highlights systemic safety failures in construction. Professor Lee Kang-joo of Changwon National University commented, "Since demolition is a straightforward process, it is highly likely the accident was due to negligence, potentially stemming from a failure to follow safety protocols or excessive pressure to cut costs." The police have organized a dedicated investigative team of about 50 officers from the metropolitan investigation unit to handle the case.
On the 27th, the construction labor union issued a statement comparing the accident to the "second Seongsu Bridge collapse," sharply criticizing the Seoul Metropolitan Government for its perceived lack of safety awareness and poor management oversight.
Raw Materials and Policy Issues
19 construction firms increase subcontracting rates by 134.3 billion won
19 major domestic construction firms have decided to raise their subcontracting supply prices by a total of 134.3 billion won to ease the burden of soaring raw material costs caused by the war in the Middle East. This move is seen as a step toward addressing the long-standing industry practice of suppressing subcontracting costs, which has been widely criticized as unfair.
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