Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Construction firms hike wages for employees in Middle East
GS E&C employees pose at the construction site for the Fadhili Gas Plant expansion in Saudi Arabia in this undated photo. Courtesy of GS E&C
By Park Jae-hyuk
Hyundai E&C's office in Saudi Arabia damaged by Iranian airstrike
Korean construction firms have begun offering higher pay to employees working at project sites in the Middle East.
The wage hikes address persistent safety concerns due to prolonged tensions in the region following the war between the United States, Israel and Iran.
Earlier this month, the ceiling of Hyundai E&C's office near the Amiral project site in Saudi Arabia was partially damaged by a tremor caused by an Iranian airstrike on a neighboring petrochemical complex.
While some staff have been evacuated, construction firms have offered incentives to employees who remain on duty.
Samsung gave gifts worth 5 million won ($3,380) last month to some 500 employees working in the United Arab Emirates, Qatar and Saudi Arabia, most of whom belong to the conglomerate's construction arms, Samsung C&T and Samsung E&A. The gifts included Samsung Electronics mobile devices and vouchers that can be used at traditional markets in Korea.
In addition, Samsung E&A decided to raise allowances for employees dispatched to the three Middle Eastern countries classified as dangerous regions.
GS E&C took similar measures for employees dispatched to five Middle Eastern countries, while offering days off and hotel vouchers to those returning to Korea.
“The company does not take your dedication for granted,” GS E&C CEO Huh Yoon-hong said in a letter sent to employees in the Middle East on March 27.
Daewoo E&C is reportedly in talks with its union to increase incentives for employees at Iraqi sites. The company is said to be considering raising allowances and offering days off, department store vouchers and hotel stays.
According to the International Contractors Association of Korea, some 220 projects by Korean construction firms are under way in nine Middle Eastern countries.
In 2024, orders from the Middle East accounted for 49.8 percent of Korea’s total overseas construction orders. The temporary decline to 25.1 percent last year resulted from a large nuclear plant contract in the Czech Republic.
After the outbreak of war, however, construction orders from the Middle East totaled $29.97 million in March, down 88 percent from the previous month. The region’s share of total overseas orders also plunged to 3.7 percent from 56.1 percent during the same period.