Builders' domestic orders rise 5.6 pct in April

SEOUL, June 9 (Yonhap) -- South Korean construction companies' domestic orders rose 5.6 percent in April from a year earlier due mainly to increased orders from the private sector, a trade association said Thursday.
The local builders clinched a combined 8.65 trillion won (US$8 billion) in domestic orders in April, according to the Construction Association of Korea (CAK).
Orders from the private sector rose 18.8 percent on-year to 6.44 trillion won in April, the third consecutive month of gains, helped by increased large-scale private investment projects and golf course construction.
Orders from the public sector, however, fell 20.3 percent to 2.29 trillion won, the ninth consecutive month of declines since August 2010, due to a decrease in large-scale national projects and public housing construction.
"The local construction market is expected to gradually recover in the second half of the year, as the government plans to start work on offices of public institutions slated to be relocated in Seoul and local cities," the CAK said.
However, the association predicted that the construction business won't be able to revive in the short term due to anemic housing transactions, soured project financing-related loans and a surge in home-backed loans.
South Korea's property market has been stuck in a prolonged slump since the financial crisis broke out in the second half of 2008.
ksnam@yna.co.kr
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