One of the major cement manufacturers in the nation has announced that it will raise prices only in Jeju, where the construction boom continues unabated. Local contractors have come out in strong opposition to the move. Mike Laidman reports.
There were more than 123,000 building permits given in Jeju last year.
That’s 55 percent more than the year before, and a true sign of a construction spree.
But the building boom has caused a shortage of key building materials, and the completion of some projects has been delayed as a result.
INTERVIEW Representative of local contractor The cement supply for public building construction will be delayed one or two days because of a shortage of aggregates, like sand, gravel, and crushed stone. <인터뷰 : 건설업체 관계자> "관급자재로 잡혀 있는데 시멘트 생산이 골재가 없어서 그런지 하루 이틀 늦어진다고 해요."
[slug] Tongyang to increase cement prices 9.2%
Among this shortage, (동양) Tongyang Cement & Energy Corporation has announced that it will increase cement prices by 9.2 percent next month, a decision which has provoked controversy.
[slug] Cement markup in Jeju causes controversy
The cement maker aroused anger among local contractors especially, as it has decided to raise prices in Jeju only.
Local contractors say they already pay more compared with mainland businesses because of shipping costs, and that they will have to pay 15,000 won more per unit if the price rises as Tongyang announced.
They argue that the Jeju-only markup is unjust.
[slug] Tongyang provides 44% of cement used in Jeju
More than 44 percent of all the cement used in Jeju is supplied by (동양) Tongyang.
Insiders therefore say that the price increase would raise building costs and ultimately affect housing prices.
INTERVIEW Gang Myeong-hun / Mixed concrete company assn. A cement price increase raises housing prices, and will ultimately affect quality of life. Tongyang is using its position as a main supplier to control the local market. We are therefore considering filing a petition with the Fair Trade Commission. <인터뷰 : 강명훈/제주도레미콘공업협동조합 상무이사> "시멘트 가격이 인상되면 당연히 건설 분양가나 부동산 가격에 영향을 미치게 되고 그 영향이 도민들에게 돌아갈 것으로 생각합니다.// **수퍼체인지** 때문에 동양이 우월적 시장주의를 이용해서 가격 인상하는 부분에 대해서 공정위 등에 제소하는 부분도 검토하고 있습니다."
But Tongyang says the price hike is unavoidable due to rising costs in cement production.
[CAMERA] Kim Seung-cheol
[REPORTER] Mike Laidman
Despite this, many in the industry are expressing their concerns that the cement price increase will cause housing prices on the island to jump, only serving to hurt those living here in the end.
