In this issue:
The rapid greying of Japan is a well-documented phenomenon: currently 23% of Japanese are over 65 versus 13% in Canada. As the post-war demographic bulge ripples through society today’s low fertility rates and changing consumer preferences are leading to declining single family starts and more emphasis on apartment living... more
Japan Market Update
Japan’s economy showed some positive, albeit tentative, signs of recovery in the second quarter. Preliminary estimates indicate that April to June GDP growth at 2.3%. Japan’s Nikkei 225 Index rose from the low 7,000 level in March to over 10,000 in September. Bankruptcies edged down 2.4% in August... more
Canada Wood Japan and AIJ Conduct LCA Seminar and Symposium
Inviting Jamie Meil of Athena Institute and Corinne Stavness of FII from Canada, Canada Wood Japan conducted a symposium and a seminar on life cycle assessment collaboratively with Architectural Institute of Japan (AIJ) and Japan 2x4 Home Builders Association. On September 17th, the symposium took place at the AIJ with approximately 50 participants...more
Symposium on the Growing Japanese Requirements for Verification of Legality of Imported Wood Products
On September 9th, the Canada Wood Group held a symposium in Vancouver on growing Japanese requirements for the verification of legally certified wood products. A total of 20 participants from industry, government and forest product associations attended the symposium to learn about new trends and developments in Japanese certification requirements... more
Japan Elderly Care Mission to Canada a Huge Success
COFI, in cooperation with the Japan National Council of Social Welfare organization, recently completed another successful elderly care tour mission to Canada. The extremely influential Japanese delegation, made up of 19 persons, comprised mainly of owners and operators of social welfare corporations and a smaller number of leading industry consultants, academics, and a representative from the Japan’s National Institute of Public Health, participated in a comprehensive week long program from... more
COFI’s 19th Consecutive JAS Tour to Canada
COFI led a group of 10 lumber graders from Japan on the 19th consecutive JAS 2x4 Lumber Championship Tour to British Columbia from September 28th to October 4th. The group visited a toured a wide range of sites in B.C. to enhance their industry knowledge of sustainable forestry, Canadian forest products as well as platform frame construction (PFC) method in Canada... more
Japanese Acoustical Researchers Collaborate on Canadian Sound Insulation Project
Between August 26th and 28th scientists from the Japan 2x4 Home Builders Association Acoustical Committee Working Group met with Ottawa’s NRC acoustics team led by scientist Dr. Trevor Nightingale as well as COFI’s Paul Newman and Shawn Lawlor to advance a joint project to develop high sound insulation performance acoustical solutions for platform frame construction in the Japanese marketplace.. more
Calendar of upcoming events in Japan
Are you planning a trip to Japan? Before you leave, be sure to check out our calendar of upcoming events... more
Korea's economy grew 2.6% in the second quarter from three months earlier, a stark contrast from a 5.1% on-quarter plunge in the final quarter of 2008, just after the financial crisis erupted. Korea will likely "minimize" a contraction in the economy this year and post a 3% GDP growth in 2010 as the government's fiscal stimulus measures help ease the worst downturn in a decade... more
NRCan/FII’s Demonstration Project being Launched
Namyangju Eco Village Project, the first and largest wood frame multi-family development project in Korea which consists of 72 units in 36 four storey buildings and additional 34 wood frame single detached houses, is chosen as NRCan/FII’s Demonstration Project in Korea... more
Kyunghee University Architecture Students get an academic credit for completing Canada Wood University-Based Training
It is vital for the growth of wood frame construction industry that architects know how to use wood. But there are only a few courses offered to students in colleges and universities in Korea on the topics on construction and design of wood buildings because of lack of knowledge on the part of teachers and suitable teaching resources... more
Infill Wall Fire Tests
Fire performance tests of 3 types of non-load-bearing wood frame wall assemblies, called infill wall, for interior wall applications have been successfully conducted in collaboration with Dr. Jim Mehaffey, Forintek, and Korea Technical Group... more
Korean developers and media experience advanced Canadian WFC
15 Korean media, developers and government official visited Vancouver and Whistler to experience advanced Canadian wood industries and wood framed buildings from September 9 to 16, 2009. Canada Wood Korea organized this mission program along with COFI... more
Hybrid residential in downtown Seoul opens new market
Most of wood homes have been built outskirt of city ever since 2x4 wood frame construction method was first introduced in the early 90th to Korea. However, high rise apartment and low density multi-family housing complex filled downtown area, which are usually constructed in concrete with brick or stone cladding... more
In the Spotlight – Chelsea Ahn, new WK Office Manager
Chelsea at her office desk
Chelsea had been working at the one of the best five star hotels in Seoul as a manager of Guest Relations Department for about 5 years after her graduation. She graduated the Hotel management School’ Les Roches’ in Switzerland... more
Calendar of upcoming events in Korea
Are you planning a trip to Korea? Before you leave, be sure to check out our calendar of upcoming events... more
The Chinese economy continues to outpace most of the rest of the world in its economic recovery spurred on by its hefty stimulus program. Q-2 GDP growth was 7.8%, Q-3 at 8.0% and the estimates for total 2009 GDP growth range from 8.0-8.3%. The government is still officially projecting an 8.0% 2009 GDP growth... more
World Expo 2010 in China
The Canadian Pavilion for the upcoming World Exposition uses a massive amount of beautiful Canadian Western Red Cedar as their attention grabbing feature. By the time of completion the pavilion will have 3800m² of clear, Canadian Western Red Cedar installed in large diamond shaped panels for the exterior façade. The individual cladding pieces are the same dimensions as a nominal 2x4 with lengths up to 20’ ... more
Canada Wood and FII Undertake Five New Demonstration Projects in China
The Government of Canada launched the Economic Action Plan as part of the January 2009 budget. It included a direct spending initiative that offered funding for wood frame construction demonstration projects. The money was made available through Natural Resources Canada (NRCAN) to applicants working in export markets. Canada Wood China and FII China submitted five proposals and secured funding for five new projects. The project attracting the most interest is the ... more
China MOC Officials and Developers visited Great Vancouver and Whistler
The interest from China is noticeably increasing. The largest delegation ever to visit Canada visited Sept 6-11, 2009, where 20 developers and, MOC officials from different provinces including Taiwan and China visited Greater Vancouver and Whistler... more
Hebei MOU
FII Consulting Shanghai (FII China) signed an MOU with the Ministry of Construction of Hebei Province on July 29th, 2009 to carry out the roof renovation of 50 buildings in a city named Shijiazhuang (a second tier city located 270 km south of Beijing and is home to the famous Canadian doctor, Norman Bethune)... more
Shanghai Local Code Completion
The Canada Wood Group consummated a Memorandum of Understanding with the Science and Technology Committee (STC) of the Shanghai Municipal People’s Government in January 2005 which committed both parties to cooperate in the development of a wood building code applicable to the City of Shanghai. Subsequent to the MOU, a series of discussions and meetings was held with the STC and organizations connected to the Shanghai Municipal Construction and Management Commission ... more
Guide to Good Practice introduced in Taiwan Making a Difference
Mr. Liao will always remember July 6, 2009. That’s the day he met Canada Wood. Joining 100 other architects and builders in Taichung, Mr. Liao listened attentively as the usefulness of the Guide to Good Practice for Taiwan was explained... more
In the Spotlight—New Staff Chris Sotiropoulos
Canada Wood China has a new Deputy Director of Training and Quality Services. Chris Sotiropoulos, a Shanghai resident of two years, has been working in construction nearly all of his life. From his desk in “Villa B”, Chris recently reflected on the influence of his father; a career builder who has been in the business for 50 years. "Growing up around building gives me great knowledge and love for the building trades." ... more
Calendar of upcoming events in China
Are you planning a trip to China? Before you leave, be sure to check out our calendar of upcoming events... more
UK Market Update
UK GDP shrank by 5.5% during the year to September 2009, though gradually improving conditions led the British Chambers of Commerce to forecast that Britain's economy will contract by 4.3% throughout the whole of 2009, before recovering to grow by 1.1% in 2010. Construction contributes about 6% of the UK economy, and was particularly hard hit at the beginning of the year when output volume in the first three months of 2009 fell by 8% compared with the previous quarter, though the rate of decline in construction activity slowed to 0.8% in the second quarter of 2009 ... more
The Emergence of Cross-Laminated Timber Building Construction in the UK
Building Schools for the Future, BSF One School Pathfinders, Primary Capital Programme, Academies and Colleges for the Future are all government backed programmes, described as comprising a once in a lifetime opportunity to change the UK’s education landscape by creating inspirational establishments fit for 21st century ... more
Paul Newman
Executive Director - Market Access and Trade, COFI Vancouver
Email: newman@cofi.org
Paul Newman joined Canada Wood in 2003 and prior to that worked for COFI for 12 years. He also has experience working for a forest products firm and with the Canadian banking sector. Paul is a graduate of the University of British Columbia in wood science and SFU in Business Administration. Paul is responsible for Canada Woods Asian programs. He enjoys gardening, outdoor pursuits and reading.
Director's Message
by Paul Newman
Grey Power Opens New Niche in Japan
The rapid greying of Japan is a well-documented phenomenon: currently 23% of Japanese are over 65 versus 13% in Canada. As the post-war demographic bulge ripples through society, today’s low fertility rates and changing consumer preferences are leading to declining single family starts and more emphasis on apartment living. Wood-frame construction (WFC) starts mirror these realities with 50% of new building now represented by low-rise apartment construction. So while WFC starts remain high, the actual volume of lumber consumed per unit is falling.
This situation represents a challenge for Canadian exporters but also an opportunity –i.e. “if life hands you lemons, make lemonade!” COFI/Canada Wood has been actively pursuing the elderly care market, a segment expanding at a rapid pace. From October 5th to 9th, a delegation of 19 Japanese commercial care providers visited Vancouver to see Canadian practices and facilities firsthand. Currently, it is estimated that Japan has a waiting list of 400,000 seniors awaiting access into residential care.
This translates into a need for about 7,500 facilities which would consume an estimated billion feet of softwood lumber. Moreover, with 13.2 hospital beds per 1,000 versus approximately 3 for Canada, Japan’s current approach to caring for the aged is expensive and unsustainable. British Columbia by contrast has pioneered the way in providing lower cost, elderly friendly solutions via assisted living (AL) housing. AL better matches the needs/capabilities of seniors with appropriate levels of support rather than moving people prematurely into hospital care.
Inbound missions to BC have been graciously supported by entities such as the Fraser Health Authority, Simon Fraser University’s Gerontology Department and numerous AL and care operators. With their assistance we have portrayed the continuum of seniors’ care in a rationale and compelling manner. In addition, the attainment of Ministerial fireproof approvals in Japan has recently enabled WFC to be employed in use categories such as care homes for the young and old.
Early penetration of this segment has already occurred with 22 facilities built exceeding 44,000 m² in area. Furthermore, the largest wooden elderly care facility in Japan is currently under construction.
Not all growth shoots are green!
Shawn Lawlor
Director, Canada Wood Japan
Email: lawlor@canadawood.jp
Shawn graduated with a Bachelor of Arts from the University of Ottawa in 1990 and later from the Asia Pacific Management Program at Capilano College in 1995. His career has spanned 15 years in international forest and building products marketing and sales with leading primary producers. Shawn joined the Canada Wood group in April 2007 to take on the role of Director, Japan Operations. He resides in Tokyo with his wife Christine and son Cole.
Sluggish employment and falling incomes are translating into declining consumption and deflation.
- Innovation: Japan is a world leader in research and development. Although Japan produces 1/12th the number of engineers compared to China, Japan filed 28,744 patents in 2008 compared to China’s 6,089 patents.
Japan Market Update
by Shawn Lawlor
Economy
Japan’s economy showed some positive, albeit tentative, signs of recovery in the second quarter. Preliminary estimates indicate that April to June GDP growth at 2.3%. Japan’s Nikkei 225 Index rose from the low 7,000 level in March to over 10,000 in September. Bankruptcies edged down 2.4% in August.
However, strong headwinds still abound. The yen’s appreciation against the US dollar is threatening exporter earnings and dampening expectations for continued strength in equities. Unemployment fell from a recent high of 5.7% in July to 5.5% in August. However, employment conditions remain sluggish as a Nikkei Inc. survey indicated that large firms intended to hire one third less graduates in the coming year. Disposable income has also been trailing, falling 1.7% in 2008.
Sluggish employment and falling incomes are translating into declining consumption and deflation. August sales fell 8.8% at department stores, 3.4% at supermarkets and 5.5% at convenience stores. The consumer price index fell 1.6% in August and nationwide commercial real estate fell 2.9% in September.
The broader spectrum of reduced consumer spending was also manifest in housing. Total housing starts fell 38% in August, weighted down by an anaemic condominium sector which fell 71%. Wooden housing starts dropped an average of 25% with results from the Post and Beam and 2x4 segments virtually identical. Speculative housing and condominium projects have been disproportionately hard hit, thereby indicating sluggish near term demand. Lumber supply has tracked consumption downward with SPF exports falling 27% between January and July of 2009. Domestic Japanese softwood production fell 15.4% between January and August. While the recession’s peak may have been passed, full fledged economic recovery will require more time to gain momentum.
DJP’s Historic Sweep to Power: Paradigm Shift or Wishful Thinking?
On August 30th, after 55 years of nearly unbroken reign Japan’s Liberal Democratic Party was resoundly defeated by the Democratic Party of Japan. Frustrated with rising unemployment, eroding living standards and a LDP government that fell out of touch with the needs of the Japanese electorate, the emergence of Prime Minister Hatoyama’s Democratic Party of Japan suggests a shift to the left is taking place.
What changes can we expect? The conservative LDP had been known for its cozy relations with Japan’s big manufacturers and exporters, centralized government, public works spending and a lack of power in managing Kasumigaseki – Japan’s bureaucracy. Hatoyama’s election platform focused on eliminating wasteful pork barrel spending, reigning in the influence of the bureaucracy and stimulating consumption as opposed to supporting big business. The DPJ is moving forward quickly with its election agenda – aiming to cut 2 trillion yen for the LDP’s supplementary fiscal 2009 budget. Already, large scale public works projects such as the Yamba Dam in Gunma have been cancelled and ministries are experiencing steep cuts: MOAFF alone has seen the equivalent of $5.3 billion removed from its supplementary budget.
On the environment Prime Minister Hatoyama is pushing for much stricter carbon emissions targets. While the LDP favored carbon emissions cuts of 15% from 2005 levels (or 8% from 1990 levels) by 2020, the new DJP target is a reduction of 25% from 1990 levels by 2020. Also in breaking with the LDP, the Hatoyama administration has publically indicated support for a higher yen in view of stimulating domestic spending power. The DJP platform also calls for tax breaks for education, reduced highway tolls and a higher minimum wage to stimulate domestic spending.
Effective leadership has been a scarce commodity among Japanese prime ministers and there is no doubt that the entrenched bureaucracy and coalition cronies will stubbornly resist DJP governments mandate for change. Nevertheless, few will mourn the passing of a moribund LDP and the ascent of the Hatoyama administration represents the first breath of fresh air in Japanese politics since former Prime Minister Koizumi.
Hidehiko Fumoto
Deputy Director and Manager Technical Services,
Canada Wood Japan
Email:fumoto@canadawood.jp
- Housing Starts: Wood frame construction is reaching a new high of 58% of all housing starts in August 2009, compared to the historic market share of 45 to 50%.
- Trade: China has replaced the United States as Japan’s largest trading partner.
- Health: At 3.4% of the adult population Japan has the lowest obesity rates in the OECD. The highest is the United States at 34.3%.
Canada Wood Japan and AIJ Conduct LCA Seminar and Symposium
by Fumotosan
Participants at Oscar Peterson Theatre of Canadian Embassy
Dr. Shiro Nakajima of BRI (right)
and Hidehiko Fumoto of Canada Wood
The AIJ Wooden Biomass committee has been and will be highly authorized in the LCA research community in Japan. The committee members include influential researchers to the CO2 emission evaluation in LCA software for buildings such as CASBEE. The discussions in the committee often involve the calculation method as to how to assess CO2 emission from the ocean freight of North American lumber shipment to Japan. In the symposium on this day, for the purpose of exchanging information with Japanese LCA researchers, AIJ invited Dr. Hattori, a professor of Tokyo University of Agriculture and Technology as a counter panellist for Mr. Meil.
After The presentations by Dr. Hattori and Mr. Meil, Ms Stavness overviewed the BC forestry and briefed the participants with the mountain pine beetle issues. These presentations were followed by enthusiastic discussions that followed by a small reception, coordinated by AIJ. On the subsequent day, Canada Wood conducted an LCA seminar at the Embassy of Canada in Tokyo. This was again collaboratively held by AIJ, Japan 2x4 Home Builders Association and Canada Wood Japan. Six guest speakers from both Canada and Japan made presentations in front of and audience of approximately 120.
The speakers concluded that CO2 emission due to ocean freight of Canadian lumber to Japan can be negligible when observed from the LCA points of view. Mr. Meil and Ms Stavness made presentations that were similar to the ones they made on the previous day at AIJ. Audience paid much attention especially to “Cradle-to-Japan Carbon Balance for Softwood Lumber”.
- Domestic Promotion: the Forest Agency’s Supplementary Fiscal 2008-2009 Budget to support Japan’s domestic forest industry is equivalent of Cdn $3 Billion.
- The current population in Japan is estimated to be 127.6 million, with 42.38 million people being aged 65 or older (33.2 percent) of the total population.
- Trade: This marks Canada’s 80th year of trade relations with Japan. In 2008, Canada exports amounted to $11.1 Billion whereas imports from Japan accounted for $15.3 billion.
Symposium on the Growing Japanese Requirements for Verification of Legality of Imported Wood Products
by Shawn Lawlor
On September 9th, the Canada Wood Group held a symposium in Vancouver on growing Japanese requirements for the verification of legally certified wood products. A total of 20 participants from industry, government and forest product associations attended the symposium to learn about new trends and developments in Japanese certification requirements. Event speakers included Shawn Lawlor of Canada Wood Tokyo, who briefed participants on recent Japan marketplace trends and Lynn Embury Williams from Canfor spoke on industry certification initiatives. Recent trends in Japan point to renewed pressure for Canadian suppliers to demonstrate the legality of their forest products. Japanese industry associations such as the Japan Lumber Importers Association have actively encouraged Canadian suppliers to supply product with full chain of custody for their products. Feedback from Canadian shippers in Japan points to a rising incidence of enquiries for certifiably legal wood, with 40% of shippers receiving these enquiries on a weekly basis. Countries such as Malaysia and Indonesia have adopted quasi-governmental association based legal certification schemes and as a result up to 80% of panel exports from these countries are certifiably legal.
In Canada’s case, most softwood shippers have met these requirements to date by providing facsimile copies of their respective third party certification and in most cases, these facsimiles are adequate proof to demonstrate legality of their forest products. Although association based certification schemes have appeared over the past several years, in the future it is expected that third party certification and chain of custody will remain as the pre-eminent certification system to demonstrate legality internationally. With a high percentage of timberlands and mills certified, Canadian industry is well positioned in this regard. However, full chain of custody from mill to market may become an emerging market reality in the future. It is imperative for stakeholders in the Canadian forest products industry to continue to monitor international certification developments closely to ensure continued unfettered market access.
Kevin Bews
SPF Manager, Canada Wood Japan
Email: bews@canadawood.jp
Kevin Bews, joined COFI/Canada Wood in 1998. He is a graduate of the University of Guelph, with a Bachelor of Commerce degree. He recently spent time in China attending the Canada Wood Asia staff meeting. He enjoys sports, traveling, and barbequing.
Japan Elderly Care Mission to Canada a Huge Success
by Kevin Bews
COFI, in cooperation with the Japan National Council of Social Welfare organization, recently completed another successful elderly care tour mission to Canada. The extremely influential Japanese delegation, made up of 19 persons, comprised mainly of owners and operators of social welfare corporations and a smaller number of leading industry consultants, academics, and a representative from the Japan’s National Institute of Public Health, participated in a comprehensive week long program from October 4th to 10th.
The one of a kind tour mission of industry professionals from Japan held in depth discussions with British Columbian based healthcare and elderly care professionals, architects, designers and contractors to review Canada’s health and elderly care system, building designs, construction details, and materials specifications for wooden elderly senior’s facilities in Canada and B.C. The delegation also toured an assortment of housing and care facilities geared for senior’s in the greater Vancouver (day care, assisted living, complete care) and Mitsui Home Canada’s facility and a 4-storey elderly care 2x4 project under construction in Langley to enhance their knowledge and understanding how these wooden structures are designed, constructed and operated in Canada.
This year’s tour mission member’s keyed in on Canada’s assisted living care system, in which the majority of these facilities in Canada are being designed and constructed in wood (3-4 storey’s) and facility operator’s provide assistance to senior’s (meals, light housekeeping, laundry, etc.), up to 1.5 hours of personal care per resident per day. Many of the owner’s and operator’s of elderly care facilities from this year’s Japan delegation expressed interest in building and operating assisted living facilities in Japan just like we have in Canada.
- Oct.28-30, 2009
Building Experts Committee & Japan Agricultural Standards Committee Meetings, Tokyo - Oct.29, 2009
2x4 Design Seminarm, Aomori - Nov. 10-13, 2009
Japan Home Show - Nov 12-14, 2009
Delegation Visit by Minister of Forests & Range, The Honourable Pat Bell - Nov 17, 2009
2x4 Fireproof Seminar, Tokyo - Nov 25-27. 2009
Canada Japan Housing Committee Meeting, Tokyo - Nov 17, 2009
2x4 Design Seminar, Nagoy
COFI’s 19th Consecutive JAS Tour to Canada
by Kevin Bews
While in Vancouver and the Lower Mainland, the mission’s participants toured a break bulk and container lumber reloading facility, a multi-phased 50 acre development (1,000 unit residential project with single family, town houses, condominiums & row houses) in New Westminster, a Home Depot in Richmond and Mitsui Home Canada’s operation in Langley. Touring the B.C. interior, site visits included a nursery in Prince George, an SPF sawmill and planer operation in Quesnel, an OSB mill in 100 Mile House and other non-residential project site visits of commercial wood frame construction (WFC) in Whistler.
Not only did the tour’s participants get a better understanding of Canadian forest products and building with wood, but they were also able to garner a better appreciation for British Columbia’s vast picturesque landscape and abundant wildlife. The highlight of the trip for most of the mission’s participant’s was seeing a Black Bear in the wild near Whistler.
Shawn Lawlor
Director, Canada Wood Japan
Email: lawlor@canadawood.jp
Shawn graduated with a Bachelor of Arts from the University of Ottawa in 1990 and later from the Asia Pacific Management Program at Capilano College in 1995. His career has spanned 15 years in international forest and building products marketing and sales with leading primary producers. Shawn joined the Canada Wood group in April 2007 to take on the role of Director, Japan Operations. He resides in Tokyo with his wife Christine and son Cole.
Japanese Acoustical Researchers Collaborate on Canadian Sound Insulation Project
by Shawn Lawlor
Based on this joint research as well as housing industry input from the Japan 2x4 HBA, the most promising floor assembly and treatment options were identified for the final phase of testing in the NRC’s world renowned flanking test facility. Acoustical performance research papers from this group are also to be presented at the Canada Japan Housing Committee meetings in Tokyo this November. Aside from the research planning meetings, the Japanese delegation presented papers in the Internoise Conference held in Ottawa with over 1,000 international participants in attendance.
The Japanese group also participated in multi-family building site visits in the Ottawa area in view of enhancing their understanding of practical applications of improving sound barrier performance. The joint research is expected to yield a series of commercially workable solutions to improve sound insulation performance in Japan’s platform frame construction.
Tai Jeong
Technical Director,
Canada Wood Korea
Email: jeong@canadawood.or.kr
Tai Jeong joined Canada Wood in 2006. Tai brings over 20 years of technical expertise in wood design and construction to the Canada Wood team. Tai is an accomplished building professional, having worked as an architect for 15 years, and is a registered contractor. In his time away from the office, he enjoys singing and sports.
Korean log imports for the first seven months of 2009 compared with the same period of 2008 decreased 20.9% to 2,801,550 m³. Of this total, Canadian log imports also decreased 15.9% to 157,570 m³ accounting for a 5.62% share in the total Korean log import market.
Korea Calendar
-
WFC Seminars
- Nov 6, 2009
In-fill Wall Seminars with FP Innovations, COEX Intercontinental Hotel, Seoul - Nov 13, 2009
CWK-KWBDA Technical Seminar, KyungJu University - Nov 21, 2009
2009 Gwangju Housing EXPO Seminar, KDJ Center, Gwangju - Feb 2010
2010 HB Fair WFC Seminar, COEX, Seoul - Mar 2010
CWK-WUC Architectural Design Seminar, COEX, Seoul
Tradeshow program
- Nov 19-23, 2009
Gwangju Housing Expo, KDJ Center, Gwangju - Jan 28-Feb 1, 2010
MBC Construction Expo, SETEC, Seoul - Feb 3-7, 2010
12th HOMDEX, COEX, Seoul - Feb 20-24, 2010
5th Housing Brand Fair, COEX, Seoul
- Feb 20-24, 2010
25th Kyung Housing Fair, COEX, Seoul - Mar 25-29, 2010
Seoul Living Design Fair, COEX, Seoul - Mar 26-30, 2010
Daegu Housing Expo, EXCO, Daegu
Korea Market Update
by Tai Jeong
Economy
GDP Growth:
Korea's economy grew 2.6% in the second quarter from three months earlier, a stark contrast from a 5.1% on-quarter plunge in the final quarter of 2008, just after the financial crisis erupted. Korea will likely "minimize" a contraction in the economy this year and post a 3% GDP growth in 2010 as the government's fiscal stimulus measures help ease the worst downturn in a decade.
Trade Surplus:
Korea's trade surplus is expected to reach a record $31 billion in the first nine months of this year thanks mainly to a sharper drop in imports compared to exports owing to the cheaper oil prices and weak local demand for capital goods.
Interest Rate:
The Bank of Korea froze the benchmark 7-day rate at a record low of 2 % for the sixth straight month. It cut the rate by a total of 3.25 percentage points between October 2008 and February 2009 in an attempt to put the brakes on a sharp economic free-fall.
Unemployment Rate:
Korea's unemployment rate fell in July for the first time since October 2008, dropping to 3.8% from 4% in June, which was the highest in more than eight years.
Won-Dollar Exchange Rate:
On September 23, the exchange rate fell below 1,200 won per U.S. dollar, the level long regarded by Korean exporters as a psychological barrier. On October 16, the local currency closed at 1,158.3 won per dollar, marking an 11-month high for the Korean currency against the greenback.
The Samsung Economic Research Institute forecasts the year-end exchange rate will range from 1,150 won to 1,160 won per dollar.
Housing
Korean Housing Starts Summary:
Korea’s housing starts for the first eight months in 2009 dropped 11.7% to 39,205 buildings from a year earlier of 44,388 buildings reflecting the prolonged depressed property market caused by the synchronized global economic difficulty. Though the Jan-Aug YTD starts still showed decreased figure, August 2009 starts showed a 3.8% increase compare with the same month in 2008. The construction sector shows signs of recovery from May 2009 thanks to state-led public projects and restructuring efforts of the sector.
Korean Wood Building Starts Summary:
The number of wood building permits and starts for the first seven months in 2009 continuously increased 10.4% and 15.9% to 6,314 buildings and 5,340 buildings respectively compare with the same period in 2008.
Wood
Korean Log Imports:
Korean log imports for the first seven months of 2009 compared with the same period of 2008 decreased 20.9% to 2,801,550 m³. Of this total, Canadian log imports also decreased 15.9% to 157,570 m³ accounting for a 5.62% share in the total Korean log import market. New Zealand continued to mark as the number one log export country to Korea with a 51.29% share followed by the United States (an 18.89% share), Russia (a 10.08% share) and Australia (a 7.15% share).
Korean Softwood Lumber Imports:
Korean softwood lumber imports for the first seven months of 2009 compared with the same period of 2008 decreased 10.2% to 359,340 m³. Of this total, Canadian softwood lumber imports marginally decreased 5.8% to 89,320 m³ accounting for a 24.86% share followed by Chile (a 22.32% share), Russia (a 19.43% share) and New Zealand (a 14.97% share).
Table: Softwood lumber Imported Volume by country
S-P-F Shipments to Korea (MFBM)
Owing to the gradual recovery in the construction sector and rise in high income households’ consumer sentiment index for future spending from May 2009, S-P-F shipments remarkably increased from the month of May compared with the same months from May in 2008. High income households are those with more than 5 million won ($4,200) monthly income and low income households make less than 1 million won.
Tae Ik Hwang
Program Director, Canada Wood Korea
Email: hwang@canadawood.or.kr
Tae Ik Hwang began to work as the Technical Consultant for Canada Wood Korea from March this year. Before joining Canada Wood Korea, he used to work for Korea Wood Construction Association (KWCA) as a technical director. Lately, he has been assisting Tai Jeong for the fire resistance tests of wood wall assemblies with Korea Technical Group.
NRCan/FII’s Demonstration Project being Launched
by Tae Ik Hwang
Picture of model of 4 story MF home
Site Plan of Namyangju Eco Village
The groundbreaking ceremony of the first 4 storey wood frame multi-family building in Korea is scheduled to be held on November 13, 2009. Originally, this master planned community development was designed as concrete houses due to the architect’s lack of experience in working with wood. However, the principal of Kwangjang Architects, Hyun Wook Lee, has a very strong belief that Eco Village should be built with wood in order to be truly “Eco” or environmentally friendly.
Mr. Lee sought help from Canada Wood early this year for technical and QA service assistance in converting those concrete structures to wood frame. In order to make safe and comfortable wood frame houses, Canada Wood has provided structural engineering and fire and sound insulation construction details.
This will contribute greatly to the development and growth of the wood frame low-rise multi-family housing market in Korea, where large scale retirement towns with several thousand units of low-rise condominiums are in the planning stage for retiring baby boomers, A Canadian construction supervisor will be assigned for the construction of the show home.
Canadian lumber and panels will be supplied for the construction, in addition to the QA support of CWK to complete a quality project. And in-situ sound insulation tests are planned to measure the heavy impact sound insulation performance of floor assemblies.
- National Energy Basic Plan:
Korean government will increase the share of renewable energy to 11.5% by 2030 and wood pellet is considered as an important low carbon energy source. - Billion Trees in Korea:
Korea Forestry Research Institute estimates that there are 8 billion trees or 162 trees per capita in Korea which are 6 cm and bigger in diameter at chest height.
Kyunghee University Architecture Students get an academic credit for completing Canada Wood University-Based Training
by Tae Ik Hwang
Completed pavilion "The Bumpy Road"
Student with certificates and presentation panels
This is due to a lack of knowledge on the part of teachers and suitable teaching resources. Canada Wood Korea has recognized the opportunities and challenges and has aggressively pursued signing of MOUs with several universities to provide wood frame construction and design trainings for students in various schools around the country to expand the use of wood.
For Kyunghee University, a weeklong Wood Frame Construction and Design Workshop, consisting of 2 days of class lectures, 1 day of assembling wood frame house mock-up and 2 days of building the student designed pavilion, was conducted for 30 architecture students selected out of over 50 applicants based on their academic performance.
Those selected students produced 8 concept designs for the pavilion using Canadian dimension lumber and “The Bumpy Road” has been chosen for its design excellence and ease of construction for full scale construction. All 30 students who have successfully completed the workshop were awarded with 1 credit recognizing training as a part of curriculum. This year CWK has worked with 3 universities so far and 86 students completed the training. Responses from students and professors are very positive and want to incorporate the training as a part of regular course rather than an extracurricular activity next year.
- New Energy Code:
Development projects involving more than 20 housing units are now required to reduce total energy consumption by 10% ~ 15 % depending upon total floor area of unit. - CO2 Emission of Korea:
Korea emitted 664 million tons of CO2 in 2008, the 7th largest in the world, according to IWR (a German based Renewable Energy Industry Institute) report.
The results shows that load bearing walls with 1 hour fire rating can successfully achieve 1-1/2 hour rating as non-load bearing walls and 2 new assemblies with 2 plies of 15 mm thick fire rated gypsum boards can achieve 2 hour fire resistance rating.
Infill Wall Fire Tests
by Tae Ik Hwang
Diagram of one of the two new assemblies with 15 mm thick boards and test results
The outside face of the above assembly right before the termination of test at 2 hr 8 min
The inside face of the above assembly after the termination of test
The results shows that load bearing walls with 1 hour fire rating can successfully achieve 1-1/2 hour rating as non-load bearing walls and 2 new assemblies with 2 plies of 15 mm thick fire rated gypsum boards can achieve 2 hour fire resistance rating.
In Korea, non-load bearing-walls with 2 hour fire rating can be used for interior wall applications such as party walls without height limits, and walls with 1-1/2 hour fire rating, up to 12 story or 50 meter structures, of various uses such as high rise multifamily and office buildings.
The 3 assemblies that are already accredited with 1 hour fire and sound insulation rating as load-bearing walls can also be used in non load-bearing applications.
In addition to fire tests, acoustic tests for two new assemblies are planned in November 2009 in order to verify sound insulation performance of the walls. Party wall applications for multifamily buildings are required by building code to meets both fire and sound insulation ratings.
Also test results of 3 new assemblies as well as 5 load bearing wall assemblies previously accredited with 1 hour fire resistance construction will be added to the Korea Standard (KS) 1611-1: Fire Resistance performance for elements of building construction – Part 1: Wall and floor/ceiling, roof/ceiling assemblies of light-frame wood structures.
Korea Wood Frame Construction Association and its members, Lafarge Gypsum Korea and Hankuk Haniso donated wood, gypsum boards, specially formulated fibreglass insulation and other products necessary for test assemblies.
Jae Chol Choi
QA Consultant, Canada Wood Korea
Email: choi@canadawood.or.kr
Jae has extensive wood frame construction experience as a Wood Building Designer, having worked on a wide range of projects such as hotels, schools and multi-storey buildings in the UK. Jae is now able to share his wood knowledge with fellow Koreans by recently joining the Canada Wood Korea team in April 2009.
A key reason to participate in this program for many of the delegates was the opportunity to observe eco-friendly and sustainable wood building systems in Canada.
Korean developers and media experience advanced Canadian WFC
by Jae Chol Choi
Group photo at Olympic village
Introduction to Canadian wood industries at COFI
- Canadian wood products, industries and advanced wood frame construction,
- variety of case studies which cannot be found in Korea,
- understand why wood is the only renewable material and should be used more in buildings - have a hope these can be applied to Korea in near the future.
A key reason to participate in this program for many of the delegates was the opportunity to observe eco-friendly and sustainable wood building systems in Canada. During the mission they were able to see a variety of wood frame buildings and wood use in buildings such as townhouse, 4~6 multi-storey multi-family, commercials and recreational facilities.
They were full of admiration especially when looking at the scale and beauty of the roof structures made of dimension lumber at the Richmond Olympic Oval. They hope these types of advanced wood buildings would be constructed in many places of Korea. Prof. Song, president of Michoo Architects mentioned to the other delegates the importance of using wood “a wood building of 220m² usually contains about 29 tons of carbon” and insisted “wood construction is the most proper building structure for the current Korean government’s ‘low carbon and green growth’ policy.” After visiting several wood building sites Mr. Lee, chief architect of Kwangjang Architects who has designed the first 4 story wooden townhouse in Korea, also emphasized the potential for Korean wood industry saying “I am confident of that wood buildings based on advanced Canadian building technology can replace the low density multi-story housing complex most of which are now being built in concrete.”
Jae Chol Choi
QA Consultant, Canada Wood Korea
Email: choi@canadawood.or.kr
Jae has extensive wood frame construction experience as a Wood Building Designer, having worked on a wide range of projects such as hotels, schools and multi-storey buildings in the UK. Jae is now able to share his wood knowledge with fellow Koreans by recently joining the Canada Wood Korea team in April 2009.
The 5 storey hybrid residential development completed recently shows how wood can be harmonized with other structures even in the downtown area.
Hybrid residential in downtown Seoul opens new market
by Jae Chol Choi
5 story wood-concrete hybrid residential
building at downtown Seoul
Jae is checking wood framing at the site
The 5 storey hybrid residential development completed recently shows how wood can be harmonized with other structures even in the downtown area. The first and second floor was built with concrete and used for parking, the upper three floors are built with wood for multi and single family use.
The building owner, who will live in the top floor, explained the reason why he choose wood. “I knew it could take more time and cost to complete the building work because of the mixed construction methods, nevertheless I did not really want to live in the same concrete buildings as my neighbours.”
This unique building is the first example of using wood material in the area and it just looks beautiful. It not only provides intimacy and warmth, but also plays an iconic role on catching the public eye. At first, the owner had difficulty in getting a building permit due to a planning officer’s wrong recognition about wood, e.g. wood burns down easily. However, he could persuade them to understand the excellence of wood home in fire showing the certificates of fire resistant construction Canada Wood Korea acquired.
This September he bore the fruit of his efforts by completing this beautiful building. In Korea, the builder and architect still tend to think the concrete structure is the best option for the multi-family and/or multi-storey housing complex in the downtown area. This unique hybrid wood house shows there is potential for wood structures compared to the other structures in terms of its performance and function.
Chelsea Ahn
WK Office Manager
Email: ahn@canadawood.or.kr
Chelsea is responsible for accounting and managing administrative office work at the Canada Wood Korea office.
In the Spotlight – Chelsea Ahn, new WK Office Manager
Chelsea at her office desk
Before she joined Canada Wood, she had no idea or understanding of the Wood Industry. For her ‘wood’ had only one meaning, it provides shade during hot summer days and beautifully dried fallen leaves during the autumn season. Chelsea joined Canada Wood Korea as an ‘Office manager and Accountant’ in August 2009.
Chelsea is responsible for accounting and managing administrative office work at the Canada Wood Korea office. On top of that, she is assisting market development programs such as trade fairs and seminars using her her experiences of hosting international forums such as FTA and APEC, while she was working in hospitality industry. For her, every day is her orientation day. This industry itself is very new for her. However, one thing is certain working for Canada Wood, she feels that she’s becoming a environmentally friendly person. The more she learns about the importance of nature and the advantages of wood use, she is very proud of herself regarding what she is doing. She is very happy to work with Canada Wood Team and it is a real pleasure to work in the wood industry.
