Yonhap reported that domestic orders of South Korean builders plunged 17% YoY in February 2011 due to a prolonged slump in the local property market and a drop in orders from the public sector.

Construction Association of Korea said in a statement that the local builders' domestic orders came to KRW 5.09 trillion in February 2011 as compared with KRW 6.15 trillion tallied a year earlier. The February orders were also down by 17.3% MoM.

The CAK attributed the decrease to a severe slump in the local housing market, which started at the onset of the 2008 financial crisis, and a decrease in construction demand from the public sector.

New orders from the private sector gained 3.4% YoY to KRW 3.19 trillion in February 2011. In the public sector, new orders declined 38% YoY to KRW 1.9 trillion over the cited period.

A CAK official said that "The slump in the local property market, coupled with a decline in orders from the public sector, is expected to continue for the time being as the housing market remains in the doldrums and a small portion of the public construction budget is forecast to be spent."

(Sourced from www.yonhapnews.co.kr)