Ulsan pushes to hit 37% local subcontracting target

Ulsan's local subcontracting rate reached 38.06% in the third quarter, pushing the cumulative average for the first three quarters of this year to 36.54% — just shy of the annual target of 37%.

According to Ulsan city, the total value of local subcontracts in the third quarter came to 2.76 trillion won ($1.99 billion), up 316.6 billion won from the previous quarter. The number of construction sites subject to subcontracting rate calculations also rose by three, to 144, from 141 in the second quarter.

The private sector posted a local subcontracting amount of 2.06 trillion won, with a rate of 33.71% — up 2.92 percentage points from the previous quarter. The city attributed the improvement to higher local subcontracting rates at construction projects carried out by major companies including S-OIL, Korea Zinc and SK Broadband.

The public sector, by contrast, saw its local subcontracting rate fall 1.64 percentage points to 61.45%. While the overall subcontracting amount grew due to the addition of new construction categories, the increase in local subcontracting was comparatively smaller.

In response, Ulsan city held a third-quarter subcontracting rate review meeting Monday afternoon at the city hall annex, with about 20 officials from the city, five districts and Ulsan Urban Corporation in attendance. The meeting focused on measures to raise the rate by year-end, including expanding the use of local suppliers for construction materials and equipment, and hosting a networking event between major construction companies and local firms in October.