Environmental Analysis of the Target Countries for Overseas Expansion of Long-Life Housing Joonsoo Chung* Bora Lee** Taejun Kim *** Daewoon Chung **** Jeongjoo Kim **** Abstract Currently Korean construction industry is shifting its interest in the overseas construction market because of the stagnating domestic market. In the meanwhile, the international housing construction market is in expansion in connection with new city development projects supported by the population growth and the urban migration of the population in various countries. However, in spite that Korean construction industry have know-hows on the new city development and the technology and system for apartment supply, the share of Korean players in the international housing construction market is continuously decreasing. As a measure to overcome such circumstance, the authors of this study considers ‘the Cost Saving and Long-Life Housing Technology and Support System’ that is under progress as a national policy research. Through the literary research and the interviews with experts, it has been found that ‘column + minimum interior(infill)’ apartments similar to the Long-Life Housing in some areas in China, Southeast Asia and Russia. Candidate countries expected to be possible for the entrance of Long-Life Housing was selected by drawing top already entered countries through a little more specific techniques. And the external environments of selected countries are analyzed. Through such process, the authors present followings as the results. First, based on the general fact that countries having more population, higher population growth rate and higher national economic power, the attraction of house market of each countries in the world are measured with the population and economy variables. Then the market groups of possible entrance are divided as Population Promising Market, Advanced Market, Economy Promising Market and Immature Market. Second, top countries where Korean construction industry has already entered in the house and city construction are found to be Vietnam, Libya, China, Algeria, UAE, Saudi Arabia, Kazakhstan, Angola, Iraq and Singapore. By comparing with the countries in possible entrance market groups, Vietnam as in Population Promising Market, UAE and Singapore as in Economy Promising Market and China and Saudi Arabia as in the emerging promising market are selected. Third, according to the studying on the opportunity factors of the cities where Long-Life Housing has been introduced in 4 areas of Vietnam, UAE, China and Khabarovsk in Eastern Russia, it has been found that, as the opportunity factors, 1) All 4 places are where the house demand is already increasing or is expected to increase. And, except UAE, apartments are generalized. 2) The commonness in the apartments in 3 countries except UAE is the column or combined type and the interior materials are separated from the building structure and installed by residents. 3) In cases of Vietnam and China, the entrance possibility is systematically opened due to the inter-government agreement or convention. Keywords : Environmental Analysis ; Overseas Expansion ; Long-Life Housing I. Introduction * Research Associate, Korea Research Institute for Construction Policy, Korea ** Research Fellow, Korea Research Institute for Construction Policy, Korea *** Senior Researcher, Korea Research Institute for Construction Policy, Korea **** Researcher, Korea Research Institute for Construction Policy, Korea This study was made possible by financial support from part of results a major research project conducted by the Korea Ministry of Land, Infrastructure and Transport, Residential Environment Research Project in 2014. Project No.: 14RERP-B080965-01 Contact Author : Joonsoo Chung, Research Associate, Korea Research Institute for Construction Policy, 15 Boramae-ro 5Dongjak-Gu, Seoul, Korea.. Tel: (82 + 2)32842629 e-mail: [email protected] 1. Background and Aims of the Study Korean construction industry has been expanding the scale of international contract while performing major roles in the national development in each difficult period ever since its entrance in the international market in 1965. Since the overseas market entrance of Korean construction industry has been helping the national growth, each new government has established policies for the overseas construction market entrance. Because of such efforts, Korean construction industry is about to achieve the yearly contract amount of around 70 billion USD with approx.8% international market share. However, unlike such brilliant achievement, the status of overseas market entrance of Korean construction industry The Asia Pacific Network for Housing Research (APNHR) April 2015 1 shows the issues of limited types (mostly plants) and areas (mostly Middle East) as well as the decreased market share in the international hose construction market. And Korean construction industry, different from the trend in Japanese construction industry, shows the activity to search for overseas market entrance when the domestic construction market becomes unsound. Recently, Korean construction industry is shifting its interest in the overseas construction market because of the stagnating domestic market. However, the forecast that the overseas market entrance will become difficult due to the recent low oil prices (2014), the industry struggles to produce the breakthrough and considers the market diversification and the expansion of construction type. Unlike the bustle of Korean construction industry, the growth of the world population and the inflow of the population into cities causes housing shortages in cities and additional developments of cities. The counties facing such situation are planning or constructing new cities to resolve the housing shortage in large cities by the population increase and the urban inflow of population. Especially, the most of overseas apartment constructions is shown to be related with such new city developments. The statistics of public institutions in the world show the forecast of 70% urbanization and 2.9 billion population increase in cities in the world by 2050. Such scale requires about 9,150 new cities in the size of Dong-tan 2 New City in Korea. 90% of the new cities will be happening in China and Southeast Asian countries. It is noted that China currently is constructing or planning about 150 new cities. Such newly built cities and buildings basically contain the global trend of ‘sustainability’. Korean construction industry has found its needs for new items and strategies to enter in the house construction markets active in all over the world. Such needs share the same context with the previously mentioned diversifications of the construction types and areas. The authors of this study see the technology and system of cost saving and Long-Life Housing recently studied for the national policies as new items. Also, the authors think the external environment of each country possible for the market entrance for the future overseas market entrance of Long-Life Housing. Therefore, this study aims to analyze the external environment of each country expected to be possible for the entrance of Long-Life Housing based on the groups of markets possible for entrance drawn from many countries that will lead the international house construction market through CAGE analysis and the list of top countries where Korean construction industry is already active. And the result is purposed to be utilized as one of data to determine for the overseas market entrance of Long-Life Housing in the future. 2 APNHR April 2015 2. Scope and Methods of the Study The study’s scope is set to the finding of external environment of each country expected to be possible for the entrance of Long-Life Housing based on the groups of markets possible for entrance drawn from many countries that will lead the international house construction market through CAGE analysis and the list of top countries where Korean construction industry is already active. As the research method to select countries possible for the entrance, CAGE analysis and the list of top countries where Korean construction industry is already active are used. First, 44 countries are classified into 5 market groups on the quadrants with the two coordinate axes (population, economy) drawn from CAGE analysis. Second, 10 top countries where Korean construction industry has entered are drawn with 654 cases of international construction performance selected with keywords related to ‘new city and house’ from 6400 performance reports of International Contractors Association. Third, the external environments that may influence to the entrance of Long-Life Housing of 5 countries of the 10 selected countries are analyzed. For the data on the external environment of the countries with market entrance possibility, on and offline documents in Korea and interviews with experts and oversea residency experienced persons have been collected as the spatial portion, and, as the temporal, the related data limited to the recent two years have been collected to find the most updated trend. II. Previous Literature Study 2.1 Trend of Study on the Overseas Market Entrance of Korean construction industry ‘Study on Strategies utilizing u-City for the Overseas New City Market Entrance’ (2007) of KICT sees the u-City construction projects that have been successively performed in Korea as a new export products for the current trend that Korean constructors are increasingly entering overseas markets due to growths of real-estate and new city developments in overseas and presents the strategies and various support measures for the overseas market entrance of u-City construction. For this, the domestic and overseas performance status and forecast related to new city and u-City are analyzed and, based on the analysis result, the guidelines for the future entrance to the new city development project utilizing u-City by establishing the basic and detail strategies are presented. For this, the study covers the analyses of market, technology and requirements for the practice and the investigation of expert opinions. ‘Trend of Studies on the International Market Entrance of Korean Construction Industry’ by Chung, J.(2014) organizes the previous literatures in websites of Architecture and Urban Research Institute, Civil Engineering Research Information Center, National Assembly Library and International Contractors Association by using the keywords of ‘overseas market entrance + construction industry or Korean constructors’ and analyzes research reports, academic theses, academic presentations and contributions with the major policies in the same time periods in the perspective that the trend analyses on temporal researches of overseas market entrance haven’t been sufficient. According to the analysis results, research reports and contributions are the ones showing the relations between the policy status and the literature keywords. Most literatures present vitalization measures and competitiveness reinforce measures for the construction sector as conclusions, yet fail to show major temporal differences. Especially, while ‘localization’ and ‘local customization’ are frequently mentioned, specific details are insufficient. The study notes, for the future overseas entrance strategy researches to vitalize the LongLife Housing distribution, efforts to draw specific images of ‘localization’ or ‘local customization’ are required, and, to handle the house construction area, the establishment of selection criteria for the entrance possible countries and the analyses of each country’s external environment are required. 2,2 Trend of Study on Apartments in China, Southeast Asia and Middle East by Korean Researchers Lim, N.’s “Analysis on the Plan Types of Small and Middle Sized Apartments in Beijing, China” (2012) attempts to find the compositions and characteristics of small and middle sized apartments resided or sold in 2009-2012 in Beijing for the fluent distribution of small and middle sized apartment planning. The analysis shows, as the characteristics of unit planning of small and middle sized apartments in Chia, 1) the separation principle between opened and private spaces is displayed strongly so that the opened area such as the living room and kitchen are arranged closed to the entrance and bed rooms are placed inside far from the entrance, but close to bathrooms. 2) LD-K type is most frequent so that the living room and the dining space are most opened areas forming important places where the family is gathered 3) many plans show the direct connection from the entrance to the living room. Hoang, D.’s ‘Comparative Study between the Spatial Compositions of High-rising Apartments in Vietnam and Korea’(2011) attempts to find reference data for Korean architects in designing apartments in Vietnam by evaluating the differences found from the analysis and comparison between the spatial compositions of high-rising apartments in Vietnam and Korea. Through the literary, drawing and questionnaire investigations, the study presents the APNHR April 2015 irrationalities and advantages in Korean apartment plans for Vietnamese market based on the comparison and analysis results. “Study on the Guideline Development of Unit Plan for Iraqi Apartments Applying the Pattern Language of Christopher Alexander” (2014) by Choi, J. currently performing the national policy research of “Development of Construction Prototype of each Local for the Overseas Market Entrance of Apartment Industry” addresses the facts that Iraqi government actively promotes the apartment construction to increase the housing rate (while international contractors perform contracts, Korean constructors are still considering the entrance in the country) and Korean researches are lacked on the apartment plan reflecting the residential culture of Iraq. The study proves that planning in new residential formation reflecting the local residential culture is possible by classifying the residential culture that should be considered when planning the residential space in Iraq through the pattern language into 4 categories, Protection of Visual Privacy, Climate Characteristics, Spatial Composition of Iraqi Houses, Size and Characteristics of Iraqi Family. Total 34 patterns are selected from the pattern language to apply Iraqi residential culture in the apartment unit plan. Based on the 34 selected patterns, the study presents the guidelines for plans of the space composition, formation, entrance, external wall and window and external space for the apartment unit. III. Selection of the Entrance Possible Countries for Long-Life Housing 3.1 Entrance Possible Market Group Selection through CAGE Analysis CAGE framework is selected as the base for the overseas market entrance of Long-Life Housing. CAGE is the abbreviation of Cultural, Administrative, Geographic and Economic differences and is a practically and frequently used measure to analyze the limits in the overseas market entrance and identify countries relatively easy for the entrance based on the differences in culture, administration (politics), geography and economy. This study uses CAGE to draw the entrance possible market groups based on the administrative, geographical and cultural factors by classifying markets in details focusing on the economic and demographic elements on the house markets. Data from UN and its organizations, OECD and IMF are utilized for the objective comparison between countries. Based on the general fact that countries having more population, higher population growth rate and higher national economic power (the national GDP, GDP growth, GDP per 3 capita), the attraction of house market of each country in the world are measured with the population and economy variables. Then the market groups of possible entrance are divided largely as the followings. observed before the entrance for Korean as well as any overseas construction industry. Fig. 2. Entrance Possible Market Groups based on Population & Economy Variables Fig. 1. Population & Economy Factors based on the Characteristics of House Market Population Promising Market (I) represents markets where the economic power of each individual national is insufficient, yet the large scaled complexes including new cities can be established in the future according to the urbanization plans backed by the rapid population growth. While the economic scale is insufficient, the markets are expected for high population growths forming high possibilities on the future new city developments. Therefore, the markets can be evaluated to be proper for the entrance of Korean construction industry. Advanced Market (II) has been initially determined somewhat ambiguous to enter for Korean construction industry since the local and advanced countries’ constructors are already in play while the both scale and the purchasing power of the house market is established. Such scene seems to be formed because Advanced Market combines two different characteristics of matured market that is already matured showing the slowness in the population and economy growths and of emerging market that is expected for the future growth based on the certain scales of population and economy. Economy Promising Market(III) has high demands for new house development or house replacement due to the continuous economy growth in the future despite the insufficient population or population growth. Therefore, the market is determined to be easy for the entrance of Korean construction industry as Population Promising Market. Immature Market (IV) includes the markets of countries difficult for the forecast on any short-term growth of house market due to the still insufficient economy and population factors, but possible for the entrance due to the future change in the market environment or policy factors. Since the population and economy are still weak, the market should be 4 APNHR April 2015 3.2 Selection of Top 10 Korean Constructors Entered Countries To find countries available for the entrance of Long-Life Housing among the countries where Korean constructors are already in play, reported data including keywords of ‘new city, apartment, housing, residential and commercial complex’ have been searched in 6,400 performance reports of International Contractors Association (2.4.1990~1224, 2013). Residential, City and Others are selected for the large classification and the detail classifications of each large classification are set. The detail categories include House, Apartment, Combined Facility, Residential Complex, Combined Residential Complex and Small Apartment for Residential Category, New City, City Development, City Plan, New Town, New Capital and City Improvement for City Category, and Hotel, Lodge, Resort, Condo, Dormitory, Residence, Officetel for Others Category. According to the classifications of “Residential, City, Others”, total 654 cases of overseas construction performances including 318 cases for Residential, 143 cases for City and 192 cases for Others are selected. The organization according to the order of entrance frequency on country shows the order of Vietnam, Libya, China, Algeria, Arab Emirates, Saudi Arabia, Kazakhstan, Angola, Iraq and Singapore. Table 1. Top 10 Entered Countries 3.3 Selection of Entrance Possible Candidate Countries (Group) By organizing lists of the countries included in the entrance target market group drawn by CAGE Analysis of 3.1 and entered countries of 3.2, candidate groups of entrance possible countries are selected as the following figure. For the additional selection of entrance possible market group in Advance Market, the categorization is performed as Matured Market and Emerging Promising Market. Matured Market is mostly composed of advanced countries having large economic scaled and stabled population growth. Emerging Promising Market is composed of countries having smaller economic scales compared to mature countries, yet allowing the market entrance due to the population growth. Matured Market is already advanced for the house market as the countries already completed the development and evaluation of Long-Life Housing technology showing differences with other market groups for entrance and, therefore, is excluded from this study. Fig.3. Selection Process of Candidate Groups of Entrance Possible Countries From 9 countries included in Emerging Promising Market (II) Group, China and Saudi Arabia are selected as the countries available for the entrance of Long-Life Housing while Vietnam is selected from 8 countries included in Population Promising Market (I) Group. And, from 9 countries included in Economy Promising Market (III) Group, UAE and Singapore are selected while Kazakhstan, Iraq and Algeria are selected from 10 countries included in Immature Market (IV) Group. From these selections, the external environments of countries (China, Vietnam, UAE) seem most promising in the three market groups excluding Immature (Observing) Market are investigated in this study. East Russia is additionally included in the countries for the external environment investigation because expert opinions that East Russia is slow in the development unlike West Russia while the apartment market is expending recently is applied. APNHR April 2015 Fig.4. Entrance Possible Candidate Group Selection (Red Colored) IV. External Environment Analysis of each Entrance Possible Candidate Country 4.1 China 1) Opportunity Factors GDP per capita passed 5,000 USD in 2011, China soon will become a middle power. The urbanization rate of China currently is 54%(WB2014) in the similar level of Korea in early 1990s. Chinese government has established the Urbanization Promotion and Healthy Development Plans (2011-2020) to drive the urbanization rate to 60% or higher by 2020 and plans to invest 40 trillion CNY(7,200 trillion KRW) for the urban construction and the low income housing until 2020. Especially, Xi Jinping administration has selected the domestic consumption stimulation through the urbanization as the new growth engine. Also, Chinese government has established New City Development Policy and shows its interests in the high-level know-how from new city developments (Bundang, Ilsan and others) in Korea. Currently, Korean construction industry entered in China market, the largest in the world (1.6 billion population and wide land of 9,596,961 ㎢) in later part of 1990 and is positioned at No. 10 with approx. 670 construction contracts in amount of 1.34 billion USD showing very low record compared to the trading amount between two countries. Recently, Korean styled apartments are under construction in larger cities due to the ‘Korean wave’ influence. However, Korean contractor entrance in the market is insignificant. After joining WTO, the house pricing of China maintains the growth trend continually despite the government’s suppression policy. China, despite its socialist system, recognizes the house as a permanent private property by enforcing Material Right Law (March, 2007). Some apartments in China are called as Máopīfáng(毛坯房, Unfinished) and Jingjuwangfáng(精裝房, Basic Interior). Since such apartments are similar to Korean Long-Life Housing, some similar markets for the entrance of Long-Life Housing is considered to exist. 5 China holds Korea-China Cooperation Conference in City and House Areas (9th Event, 2012) joint with Korea. MOU between the two nations on the sustainable urban development area has been entered (2013) and Korea-China FTA will be activated from 2015. 2) Threat Factors No.1 country in the international construction contract China has 5 of top 10 largest constructors in the world. Although the construction industry is vitalized due to its extensive urbanization policy in the country, only the big picture on the urban construction has been drawn (2010). China is a socialist nation so that closed tendency is appeared. And, the unique culture called as ‘Guanxi’ existing in China is considered to become a barrier for foreign constructors including Korean companies. Since domestic constructors possess the basic technology while maintaining low pricing, the domestic constructors are evaluated to have high possibilities to be advantageous in competitions with Korean companies. 4.2 Vietnam 1) Opportunity Factors Currently having GDP per capita of approx. 1,700 KRW (GDP of 144.6 USD), Vietnam shows rapid population increase led by Hanoi, Ho Chi Minh City and other major cities. The urbanization rate of Vietnam is 33% (WB2014) while the housing distribution rate based on western style apartments is approx. 10% (KOTRA). The housing shortage is severe so that Vietnamese government has established to supply social houses in priority in the national level and is performing 124 construction projects in nationwide. Therefore, the country is evaluated to have high possibility for the development in the future 20 years. Additional, the supply of apartments for higher classes and foreigners are performed mostly in large cities (Hanoi, Ho Chi Minh City). Such apartments under constructions in Vietnam are in the column structure having high ceiling heights with minimum interior finishing. It has been confirmed that the recent Hanllyu influence is increasing the attention to Korean style apartments in Vietnam as well. Vietnamese prefer apartments in small buildings over the other types in large scaled buildings. The reason of such residential preference seem to be based on the impossible activities of resident in the apartment to change the internal space arrangement and even the outer wall considering Feng Shui and the fortune of each individual resident in the apartments in large scaled building while such action is possible in the apartments in smaller scaled buildings. In Vietnam, Korean, Chinese and Japanese constructors are active. It has been investigated that Chinese constructors 6 APNHR April 2015 are suffering from influences of anti-Chinese demonstration (the land dispute between Vietnam and China, May, 2014) and Chinese action prohibiting new investment in Vietnam (Retaliation for the dispute, Jun., 2014) and Japanese constructors are highly interested more in the railway/road construction than the apartment construction. Vietnamese government’s action of ‘Mitigation of Condition’s for Foreigner’s House Purchase’ (Feb., 2014) is revitalizing the real-estate market. Vietnam is under the cooperation relation and is a FTA signed country with Korea. 2) Threat Factors In Vietnam, as in China, the Political Bureau of the Communist Party possess the full authority on the entire determination, but the politic is stabilized. Different from other Southeast Asian countries under Indian culture influence, Vietnam belongs to Chinese Character Culture so that many Chinese constructors have entered in the market. The technology of domestic constructor have reached to a certain level and are classified to be more advantageous than Korean companies in terms of pricing competition. Therefore, some expert opinions note that the market entrance of Infill manufacturers would be more promising than that of constitution companies for Korean construction industry because Vietnamese part manufacturers are still in weaker positions. 4.3 Arab Emirates (UAE) 1) Opportunity Factors UAE consisting of seven emirate states is known as global oil producer GDP per Capita is 44,771USD (2014, IMF) with the urbanization rate of 84.4%(2011). According to BMI, a market research expert institution, the scale of construction industry of UAE in 2014 is approx.. 3.9 billion USD showing 5.5% growth against the previous year’s and taking 9.1 % of UAE’s GDP. Abu Dhabi and Dubai take the major portion respectively 53% and 46% in the scale of UAE construction industry as positing at the center of UAE’s construction boom. And the real-estate portion including housing and commercial buildings takes 58% of entire scale of construction industry. According to IMF’s estimation, the population will become 6 million in 2015 from 2010’s 5.4 million due to the increase of foreigners’ inflow so that residential and commercial spaces are expected to be increase to accommodate such population. Therefore, real-estate and infra related projects under the government’s administration are expected continuously offered. Various housing projects are performed in Abu Dhabi and Dubai respectively based on Plan Abu Dhabi 2030: Urban Structure Framework Plan (central city development plan) and Dubai Strategic Plan 2015 (Dubai Economic Development Plan). Additionally, city development projects for the northern Emirates (Sharjah, Ajman, Ras Al Khaimah, Umm al-Quwain, Fujairah) behind in development compared to Dubai and Abu Dhabi are also actively performed. The plan to construct adequately priced apartments(affordable housing) for low income foreign workers has been announced, and, currently, the housing establishment in the scale to accommodate 380 thousand workers is under the progression. Also, UAE government is performing various housing related supporting projects such as Zayed Housing Programme for the life stability through continuous house supplies as a part of efforts to improve the life environment of its citizens. As demands of the real-estate and the construction industry are increasing, Dubai government promotes the environment-friendly and green economy. 2) Threat Factors Middle East countries consider the local construction performance important. And, the performance records in various construction projects are required to secure opportunities and competitiveness to participate in the future large scaled projects or the projects in other Middle East countries. The scale of general construction project is smaller than other oil or gas plant project and generates insignificant return against the investment. However, in the long-term perspective, such small scaled construction can be considered as an opportunity for a constructer entering Middle East construction market for the first time. However, the local constructors show the advantage in the contract for general construction projects so that the single contract by a Korean constructor is, in fact, difficult. Therefore, it is expected that various business cooperation through the joint participation with a local constructor, the establishment of local company or the continuous network with a local company is required. Recently, not only U.K., but China, Japan and other many countries anticipate the active contract wining in projects through the government guarantees. Since UAE, especially Dubai significantly welcomes such actions so that actual achievements are resulted. Financing through not governments, but private institutions seems very active so that various projects are contracted by presenting long-term guarantees as the conditions. Dubai had been maintaining Zone 2A Seismic Code Policy although the country is safe from earthquakes. However, after the large scaled earthquakes in Iran, Pakistan and other places, the country conditionally raised the policy up to Zone 2B. Since the determination is made without any announce on the enforcement, the industry is facing confusions. And, especially, since the determination is applied to the buildings currently under constructions, issues to re-design and re-analyze and to supply new construction material (seismic APNHR April 2015 endurance) are faced. Any Korean company ether in performing or attempting to promote construction project in Dubai should acquire accurate understanding on and prepare for Dubai’s seismic code in advance. In general, the housing of UAE is in the single house type, not in the apartment type due to the country’s vast land. Each housing is large in the area of 496 m2 or larger and is provided for free so that the entrance of Long-Life Housing is expected to be difficult. 4.4 East Russia (Khabarovsk) 1) Opportunity Factors Russia, the world no. 9 country with GDP of 2 trillion and 57.3 billion USD(as of 2014, IMF) shows a great deal of differences between the West already developed and the East still in need of development. The urbanization rate of Russia is 73.8%(2011). This study is limited to Khabarovsk in East Russia. The country shows the severe differences between the rich and poor and high prices. However, the wage is low. Russian use their wages for the living cost only without savings. Since the education and the medical are free so that the low wage is not much of problem in living. People shows no desire to increase the wealth and want relaxed lifestyles. With the land provided as the long-term rent for 50 years, complete process from the design to the sales can be performed. For private housing constructions, sales price fluctuation is applied and the sales includes the concept of construction investment partnership. Since the financing system is insufficient, the construction is performed with the payments of future residents. Therefore, the construction period is very extensive and the characteristic that the sales rate increases right before the completion is displayed. In general, apartments in 5-10 floor buildings are supplied to public officers and soldiers for free. Since the apartments are inherited to children so that the desire for the ownership or invest for housing is rather low and the characteristic of long-term stay in the same location is shown as well. For the local apartments, the constructor completes only the structure and outer wall and the resident directly complete the interior wall and finishing by purchasing desired materials. Upper income class prefers European materials and low and middle income classes use Chinese materials. Other than local constructors, almost no competitor exists. Although some Chinese constructors appear in the market, the credibility of Korean constructors completing within the proposed period is highly evaluated. 2) Threat Factors Since the global standard (the US technology standard) is not applied, but partially improved old Soviet standards are applied, materials and equipments are frequently supplied 7 from the local market. Especially, Insulation, Moisture, Structure standards, fire, evacuation, ventilation standards and sunlight and setback regulations are very strong. Due to the Russian characteristics with no purchases of middle classed materials between the expensive European and Japanese materials and the cheap Chinese materials, the export of Korean materials is very difficult. V. Conclusion This study selects the candidate countries shown to be possible for the entrance of Long-Life Housing through the comparisons of top 10 countries in the countries of entrance possible market groups drawn in the population and economy aspects and the list of countries where Korean constructors already entered in the house and city areas. Then, the opportunity factors and threat factors for the entrance of Long-Life Housing in each countries are studied. The results from such activities are as followings: First, based on the general fact that countries having more population, higher population growth rate and higher national economic power (the national GDP, GDP growth, GDP per capita), the attraction of house market of each countries in the world are measured with the population and economy variables and the entrance possible market groups are classified as Population Promising Market(8 countries), Advanced Market(Emerging Promising Market including 8 countries, Matured Market including 9 countries), Economy Promising Market(9 countries) and Immature Market(10 countries). Second, top countries where Korean construction industry already entered in the house and city areas are Vietnam, Libya, China, Algeria, UAE, Saudi Arabia, Kazakhstan, Angola, Iraq and Singapore. Vietnam in Population Promising Market, UAE and Singapore in Economy Promising Market and China and Saudi Arabia in Emerging Promising Market are selected as the entrance possible candidate countries by comparing the countries in the entrance possible market group. Kazakhstan, Iraq and Algeria are selected in Immature Market, but excluded from the study scope. Third, the results of finding the opportunity factors and threat factors on the entrance of Long-Life Housing in 4 countries including Vietnam, UAE and China drawn in the market groups and Khabarovsk, East Russia drawn from the interview investigation are as followings: 1) All 4 countries are where the house demand is increasing or are expected for the future demand increase, and, excluding UAE, apartments are generalized in those countries. 2) The common features of apartments in the 3 countries except UAE are either the column or combined type and the built-ins are completed by 8 APNHR April 2015 residents as being separated from the building. 3) Vietnam and China are in common as being systematically opened for the entrance due to the inter-government agreements or conventions. As the threat factors 1) Social nations (China, Vietnam and East Russia) or closed country for foreign companies (UAE) make the entrance for foreign companies difficult to enter, 2) Limits exist on the quality and pricing to compete against the already entered foreign constructors or local companies. Although some points that the overseas market entrance of Long-Life Housing is too early, the result of this study confirms that the external environments making the entrance possible are formed in various places in the world where the scale of house market is significant and construction companies from advanced counties are in fierce competitions to preoccupy the house market. On the other hands, Korean constructors are found to be insignificant in the international house market because the constructors prioritize the profit and focuses in the plant construction and Middle East areas. Though the external environment allowing the entrance is formed, the threat factors exist. Therefore, Korean construction industry should be in hurry for the entrance while reviewing in detail on the local information. Also, like many countries in the world making efforts for the overseas market entrance of own national construction industry, Korean government should deeply consider to establish support policies to provide more power for Korean construction industry before it’s too late. REFERENCES 1. KICT(2007). New Town Overseas Strategy using the u-city. Research Report. Ministry of Land, Transport and Maritime Affairs. 2. Lin, N.(2012). A Study on the Analysis of the Plane Type of Small and Medium-sized Apartment Housing in Beijing, China. Proceeding of Fall Annual Conference of Architectural Institute of Korea.32(2), 91-92. 3. Hoang, D.(2011). A Study on the Comparison of Space Organization at High-Rise Apartment between Vietnam and Korea. Journal of Architectural Institute of Korea, 27(4), 71-78. 4. Chung, J.(2014). 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