`Construction, Healthcare Firms to Flourish’
By Yoon Ja-young
Staff Reporter
Construction companies and healthcare businesses will have more business opportunities under the new government of President Lee Myung-bak, the LG Economic Research Institute said.
The think tank analyzed how the policy tasks suggested by the presidential transition team will affect businesses and concluded that businesses targeting domestic markets will benefit most.
President Lee has pledged 7 percent annual economic growth and to create 3 million jobs over the next five years, on top of cutting living expenses for the working class by 30 percent. To do this, the new administration is likely to focus on boosting domestic-oriented businesses, including construction and services.
Construction companies, among others, will be major beneficiaries, according to the institute. Lee’s pledge to build a grand inland waterway across the country on top of developing reclaimed Saemangum land will create a huge market for construction companies and civil engineers.
It also pointed out that urbanization will gain momentum under the new President, who believes in redeveloping downtown areas with skyscrapers. Businesses related to setting up city infrastructure, building management service firms, and those suiting urban lifestyles will flourish under Lee, according to the institute.
The introduction of private health insurance will also open a new market for healthcare businesses, the institute said. Currently, hospitals should be set up as nonprofit corporations, but the new government plans to allow profit-seeking businesses while introducing a private health insurance scheme.
The LG institute cited the energy business as another major beneficiary in the new administration.
Businesses are also reacting quickly to the inauguration of the new President. According to the Financial Supervisory Service, one out of three firms that handed in regulatory filings to change business purposes said they will engage in energy-related businesses. Those who filed said they will advance into construction and real estate businesses took up 19.41 percent.