The global financial turmoil stemming from the downgrade of the US credit rating will nag South Korean builders in the short-term, but not affect them considerably in the mid and long-term, said the report compiled by the International Contractors Association of Korea (ICAK) carried by Yonhap news agency Wednesday. The global financial crisis will contract Asian countries' construction markets, where South Korean builders do a large part of their business, The outlook for South Korea's construction sector is negative from this year to next year, it said. Overseas orders won by South Korean builders this year are expected to reach up to $70 billion, slightly down from a record high of last year's $71.6 billion, the report said. However, steady demand for large construction projects from the Middle East is expected to brighten long-range prospects of the construction industry after 2013. Still high oil prices will drive oil-rich countries to keep placing orders for big projects, despite recent drops in oil prices out of fear of a global recession, said the ICAK. Recent developments in the Arab world will also create strong demand for social infrastructure such as housing, education and health care facilities. Saudi Arabia has unveiled a plan to invest $385 billion in developing infrastructure and the United Arab Emirates will funnel $1.8 billion into an urban development project, the report said. “The US-led financial crisis will hit South Korean builders' overseas business,” said an official from the ICAK. “It's still hard to forecast the global construction market, but orders from Middle East countries are projected to be steady in the long
