Director's Message, by Paul Newman
Canada Wood Korea Goes for Gold
In case anyone missed it during the speed skating element of Vancouver 2010, Koreans are gutsy bunch – used to hard work and bursting with expectations of reaching the top. Thus it was in keeping with the national character that Canada Wood Korea joined forces with developer Samgaksan Valley to thrust up the first four storey wood-frame constructed (WFC) building in Korea ... more
Japan

Japan Market Update
Japan’s real GDP posted 4.6% annualized growth in the October to December 2009 quarter: the third consecutive quarter of growth. Japan’s Finance Minister Naoto Kan commented that fears of a double dip recession are now abating. Japan’s GDP finished at US $5.08 trillion in 2009, narrowly retaining the lead over China’s $4.91 trillion to remain the world’s second largest economy. Strong GDP growth in the final quarter of 2009 surprised many economists, who had forecasted zero to one percent growth for the end of 2009, and just over one percent growth in 2010... more

Eco-Protectionism: Japan’s Nationalist Forestry Policy
The Council of Forest Industries recently conducted a third party review of market barriers that relate to the promotion of the Japanese government’s promotion of Kokusanzai or domestic wood in the forestry and housing sectors. While the complete report will be made available shortly, this article points out some key findings....more

Hatoyama DJP Coalition Government Grapples with Voter Expectations of Change
Prime Minister Hatoyama’s Democratic Party of Japan’s coalition government swept to power in August 2009 on widespread voter disaffection with the prior LDP government. Japanese citizens had grown frustrated with chronic political scandals, wasteful public spending, stagnant growth, deteriorating living standards and a lack of political leadership. Six months on, the Hatoyama government’s approval ratings fell to below 50% and the Japanese public is beginning to wonder if they are experiencing in Yogi Berra’s words, “ “Déjà-vu all over again”....more

Sounding Off
Speaking about attitudes to wood in building ... wood frame construction (WFC) has earned kudos in Japan and Korea for energy efficiency, seismic integrity and its low environmental impact through the use of natural materials. However both markets place a premium on acoustic isolation between dwelling units in multi-family construction: one property in which WFC is thought to be deficient.... more

SPF in Post and Beam Housing: Tama Home Case Study
Tama Home, a large Japanese construction company, plans to build over 100 homes in Hokkaido and is poised to construct over 10,000 houses in Japan this fiscal year. In Sapporo and Tomakomai, they entered the market and began designing post and beam homes using SPF dimension lumber... 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
Korea Market Update
In 2009, Korea’s economy grew 0.1 percent in the first quarter, 2.6 percent in the second, 3.2 percent in the third and 0.2 percent in the fourth quarter. The full-year growth rate for 2009 avoided a yearly contraction by expanding 0.2 percent.... more

Canada Wood and NRCan Demonstration project in Korea
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

Builder Training in January 2010 in Vancouver
The annual training program in its 5th year, which focuses on the transfer of Canadian multi-storey multi-family wood frame construction technology and best practices to Korean wood construction industry, was delivered by BCIT’s Canadian Housing and Construction Centre (CHCC) in collaboration with COFI and CWK, from January 20 to 26, 2010 in Vancouver this year again... more

Classification of Wood Frame Construction as a Specialty Trade Gains Momentum
Korea Wood Construction Association has been lobbying the Korean government since early 2000s in vain for the classification of wood frame construction as a specialty trade due to small size of wood construction market and lack of effective and compelling arguments for remedying the situation of WFC firms being unable to bid - in their own right as a trade - on wood construction projects and resulting subjugation of WFC as a subcontractor for other designated trades which has been depressing economic prospects for the sector... more


In the Spotlight Won Hwa Choi
Won Hwa Choi has been training wood-frame house construction for numerous people since 1997. Wonhwa has been visiting wood-frame construction site with theoretical and practical technique based on training and site experience, then, checking and supporting upgrade technique with on-site training for improve of wood-frame house construction technology in Korea... 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


China
China Market Update
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

Giving Wood Its Due
Canadian wood industry executives used to daydream about hitting the mother lode if only they could sell a 2X4 to every Chinese. A more recent twist on this tale goes – ‘if only I could earn a quarter for every time I heard a wood use objection in China, I’d be rich!’ ... more

Pavilions using wood in construction at the Shanghai Expo 2010
Canada Wood recently hosted the second of three annual Builders and Suppliers Club events at beautiful Dream Home Canada in Pudong, Shanghai. We decided that a timely theme for the event would be “Wood construction at Expo Shanghai 2010.” The purpose of the event was to help raise the profile of wood building materials in China. We focused on some of the Pavilions using wood, in construction, at the Shanghai World Expo 2010... more

Inspector Training for Developers
Canada Wood has long sought Inspectors in China that could positively affect the WFC Industry. The Inspector Training Program was originally intended for inspection companies, but is now also including the Developers who are building WF projects ... more

The Next Big Opportunity for China
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

In the Spotlight - Claire Sun
Anyone who’s made a phone call to Dream Home Canada (DHC) in Shanghai over the past year was most likely greeted by the welcoming voice of Receptionist Sun Zheng Ya, also known as Claire... 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

UK Market Update
Britain's economy finally clawed its way out of recession in the fourth quarter of 2009. Office for National Statistics figures show that gross domestic product expanded by 0.1% between October and December 2009, well below analysts' forecasts for growth of 0.4% after an 18-month recession that wiped out 6.0% of output ... more

Results of Timber Trade Federation’s ‘UK Timber Industry Certification Report
The Timber Trade Federation’s ‘UK Timber Industry Certification Report’ revealed that certified timber made up 83.6% of all domestically produced and imported wood in 2008, a growth of 16.9% since 2005... 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.


The demonstration project not only demonstrates wood-frame’s ability to meet Korean commercial low-rise building needs but also highlights improved assembly designs for floors and wall which are designed to meet requirements for apartment fire safety and sound insulative performance.

Canada Wood Korea Goes for Gold

In case anyone missed it during the speed skating element of Vancouver 2010, Koreans are gutsy bunch – used to hard work and bursting with expectations of reaching the top.

Thus it was in keeping with the national character that Canada Wood Korea joined forces with developer Samgaksan Valley to thrust up the first four storey wood-frame constructed (WFC) building in Korea. Erection of the landmark project commenced in November 2009 enabled by generous support from Natural Resources Canada’s (NRCan) demonstration fund. NRCan’s Director-General Tom Rosser of Ottawa presided over the opening ceremony held Nov 22nd in Namyangju, Korea.

The demonstration project not only demonstrates wood-frame’s ability to meet Korean commercial low-rise building needs but also highlights improved assembly designs for floors and wall which are designed to meet requirements for apartment fire safety and sound insulative performance. Sound in particular has represented a barrier to WFC penetrating the multi-family, multi-storey segment. R&D work undertaken by CW Korea with the support of Canada’s National Research Council (NRC) plus Korean scientists and institutes has led to the development of assembly configurations which meet Korean robust requirements for sound attenuation. The Samgaksan Valley structure will enable insitu acoustics testing as well serving as a demonstration platform for CW Korea to market WFC to the development community and housing influencers.

Canada Wood site supervisor Ed De Boer worked closely with Korean builder “Wood Story” throughout the construction phase. Coming from balmy Vancouver, Seoul’s frequent sub-zero conditions came as an initial shock to Ed. Ontario born and raised, Ed quickly rose to the challenge and frequently was the only member of the crew working outside in frigid conditions. (He attributes large helpings of ‘kimchi’ for fueling his internal fires!) Samgaksan Valley will eventually consist of ‘two on two’ townhouses built in the same four storey configuration as the demo structure. With energy efficiency becoming a huge issue in Korea its highly insulated nature will showcase the thermal upside of WFC in a compelling way.

Go Korea Go!

NRCan Director General Tom Rosser presides over demo project MOU signing between Samgaksan Valley and CW Korea Canada Wood and NRCan's first four storey wood-frame constructed (WFC) building in Korea

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.


Japan 2009 total housing starts shrank 27.9% to finish at 788,410 units, the lowest number since 1964. Total wooden starts fell 18.3% to 430,121 units whereas others plunged 43.8%

Economy

Japan’s real GDP posted 4.6% annualized growth in the October to December 2009 quarter: the third consecutive quarter of growth. Japan’s Finance Minister Naoto Kan commented that fears of a double dip recession are now abating. Japan’s GDP finished at US $5.08 trillion in 2009, narrowly retaining the lead over China’s $4.91 trillion to remain the world’s second largest economy. Strong GDP growth in the final quarter of 2009 surprised many economists, who had forecasted zero to one percent growth for the end of 2009, and just over one percent growth in 2010.

The growth is attributable to a recovery in exports and consumer spending. Exports of manufactured goods to Asia have rebounded. Electronic manufacturers are leading the recovery: for example, Panasonic posted a 280% increase in profit in the October to December quarter. Two thirds of Japan’s Nikkei listed firms are projecting earnings growth of over 30% in 2010. The government “Eco-Point” stimulus measures have also supported increased sales of energy saving electronics and appliances.

Nevertheless, trouble remains at some of Japan’s signature companies. Japan Airlines filed for bankruptcy protection in January. New management has been brought in to restructure the carrier. Job losses in excess of 15,000 and significant reductions to pension benefits are expected. Meanwhile, Nagoya based Toyota Motors Corporation has been experiencing a series of quality recalls on millions of cars globally that has seriously undermined its reputation for leadership in quality.


Housing Summary

Japan 2009 total housing starts shrank 27.9% to finish at 788,410 units, the lowest number since 1964. Total wooden starts fell 18.3% to 430,121 units whereas others plunged 43.8%: largely due to anemic activity in the condominium segment. Tightened credit availability and excess supply of condos weighed heavily on new construction throughout 2009. As a result, wood frame total market share increased from 47.3% in 2008 to 54.6% in 2009. Annual results by segment were as follows: post and beam was 324,406 (Off 17.1% over year prior results), wooden pre-fab was 14,321 (20.2%) and 2x4 was 91,394 (15.1%). By overall market share, 2x4 starts increased from 9.8% in 2008 to 11.6% in 2009.

December results continued to show signs of gradual improvement. December total starts finished at 69,298 units: a 15.7% decline over December prior. Wooden starts were 40, 655, trailing year prior results by 4%. Single family owner occupied housing increased 3%. Most housing industry experts expect a recovery to between 800,000 and 900,000 starts in 2010.


Japan Softwood Import Statistics

The dramatic decline in building starts significantly impacted 2009 Canadian softwood exports to Japan. Total softwood exports finished at 919,448,000fbm in 2009; a decline of 22.76%. SPF exports to Japan dropped 20% to 649 million fbm; Yellow Cedar exports fell 33.28% to 38.5 million fbm, Western Red Cedar fell 34.5% to 7.7 million fbm; Douglas Fir / Larch fell 22% to 69 million fbm and Hem-Fir sank declined 32.7% to 141 million fbm.

 


Japan Calendar
  • Mar 8
    Wooden Social Welfare Facilities Seminar in Yokohama Japan National Council of Social Welfare Seminar, Kanagawa
  • Mar 9-12, 2010
    Nikkei Architecture Show, Tokyo
  • Mar 15, 2010
    Fireproof Seminar, Tokyo
  • Mar 23, 2010
    Kashima Project Elderly Care Case Study & Tour, Ibaraki
  • Mar 25, 2010
    Kasugai Project Elderly Care Case Study & Tour, Aichi
Did You Know
  • Japan’s 2x4 building starts totaled 91,394 units in 2009, and by overall market share, 2x4 starts increased from 9.8% in 2008 to 11.6% in 2009.

Eco-Protectionism: Japan’s Nationalist Forestry Policy

To stimulate new growth in Japan’s forests a major program of commercial thinning is underway: with a huge new supply of commercial round wood the consequence..

COFI recently conducted a third party review of market barriers relating to promotion of domestic wood in the Japanese housing sector. Measures promoting Japan’s domestic forest industry are being conducted under the pretext of reducing Japan’s carbon emissions. Under the Kyoto Protocol, Japan pledged to reduce its carbon emissions relative to 1990 levels. To meet this target, Japanese forests must sequester 13 million tons of CO2 between 2008 and 2012. Failure to meet Kyoto targets by 2012 will require Japan to purchase trillions of yen in carbon credits from other countries.

To stimulate new growth in Japan’s forests a major program of commercial thinning is underway: with a huge new supply of commercial round wood the consequence. Approximately Cdn $13.5 billion has been earmarked for enhanced forestry between 2007 and 2012. An extra Cdn $1.46 billion in 2009 was earmarked to assist domestic producers with subsidies for roads, investment in new machinery, transportation subsidies etc*.

In addition to enhancing the supply side, widespread incentives are in place to boost demand for local timber. Public facilities utilizing domestic wood products are eligible for generous construction subsidies of $1,588/m² of floor area and $588/m3 for structural wood products. Additionally 116 local governments across Japan are offering incentive programs for homes built with a minimum amount of domestic wood content - on average the minimum content required is 60%. Over 100 financial institutions also offer discounted mortgages for houses built with locally produced lumber products.

Recently power has shifted to the Democratic Party of Japan. DPJ Prime Minister Hatoyama has raised Japan’s commitment to reduce greenhouse gas emissions by 25% from the 1990 level. Analysts contend that forestry related subsidies are therefore likely to expand in the future.

To sum up, this situation raises concerns and underlines the need for a measured response from Canadian industry and government.


Japan Calendar
  • Mar 8
    Wooden Social Welfare Facilities Seminar in Yokohama Japan National Council of Social Welfare Seminar, Kanagawa
  • Mar 9-12, 2010
    Nikkei Architecture Show, Tokyo
  • Mar 15, 2010
    Fireproof Seminar, Tokyo
  • Mar 23, 2010
    Kashima Project Elderly Care Case Study & Tour, Ibaraki
  • Mar 25, 2010
    Kasugai Project Elderly Care Case Study & Tour, Aichi
Did You Know
  • A Japanese startup company called Soundpower Corporation is tapping into a new energy source, which consists of tiles that convert vibrations caused by people or automobiles passing overhead into electricity.
  • Japan had the world's second-biggest economy in 2009, at over $5 trillion.

Hatoyama DJP Coalition Government Grapples with Voter Expectations of Change

Prime Minister Hatoyama’s leadership has also drawn fire as a result of foot dragging on key issues and for distancing himself from certain campaign pledges.

Prime Minister Hatoyama’s Democratic Party of Japan’s coalition government swept to power in August 2009 on widespread voter disaffection with the prior LDP government. Japanese citizens had grown frustrated with chronic political scandals, wasteful public spending, stagnant growth, deteriorating living standards and a lack of political leadership. Six months on, the Hatoyama government’s approval ratings fell to below 50% and the Japanese public is beginning to wonder if they are experiencing in Yogi Berra’s words, “ “Déjà-vu all over again”.

Voter expectations for good governance have been quickly evaporated as a result of money scandals that have recently come to light. The influential DPJ Secretary General Ozawa has been indirectly implicated in fund raising scandals. Prime Minister Hatoyama faces questions on improper political donations from within his wealthy family.

Prime Minister Hatoyama’s leadership has also drawn fire as a result of foot dragging on key issues and for distancing himself from certain campaign pledges. The LDP coalition continues to delay a decision on the relocation of a U.S. airbase in Futenma, Okinawa, drawing harsh criticism from the U.S. and public concern over worsening relations with the Obama administration. Japan’s growing national debt issue is also compromising the administration’s ability to fulfill campaign promises of new spending initiatives to raise quality of life as well as the pledge not to raise the consumption tax over the next 4 years. Phase 1 of increased child care allowances of 13,000yen per month will come into effect in April, however, the full pledge of 26,000yen per month appears difficult to implement given the AA debt outlook was recently downgraded to negative from stable by Standard & Poor. Cabinet dissent is also emerging on the promise not to increase taxes. Finance Minister Naoto Kan has established a Tax Commission to begin debate on raising taxes with the approval of the Prime Minister despite his pledge of no new taxes.  

To the Hatoyama administration’s credit, the campaign pledge to reduce public works spending has made some progress. As a case in point, the Forestry Agency budget was reduced 24% for fiscal 2010 with large cuts to public works. Similar cuts have been made to other ministries. Nevertheless, political commentators are voicing the need for the DPJ to resolve the scandals and move onto more pressing issues of repairing the economy and relations with the U.S.

 


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.

Sounding Off

Test methods to evaluate low frequency impact performance of floors are contentious: how to set realistic transmission levels and also to generate noise which is close to real life situations? 
Speaking about attitudes to wood in building ... wood frame construction (WFC) has earned kudos in Japan and Korea for energy efficiency, seismic integrity and its low environmental impact through the use of natural materials.   However both markets place a premium on acoustic isolation between dwelling units in multi-family construction:   one property in which WFC is thought to be deficient.

Japanese and Korean consumer expectations and code requirements for sound insulation between units are amongst the most stringent in the world.   In particular low frequency impact transmissions are challenging for standard wood floor constructions to attenuate.   Sound travels directly through floor assemblies and also via indirect ‘flanking’ pathways through connectors, supporting walls, ceilings etc. 

Test methods to evaluate low frequency impact performance of floors are contentious:  how to set realistic transmission levels and also to generate noise which is close to real life situations?  Moreover sound is a subjective sense.  What is extremely irritating to one person may not bother another. 

A major Canada Wood project - being delivered in partnership by Canada’s National Research Council’s (NRC) Indoor Environment  group and researchers in Japan and Korea - aims to develop improved floor assemblies and connection systems which minimize sound transmission and meet codes.   Research on Japanese configurations is close to completion and work is scheduled to commence on Korean construction in April.    Direct transmission tests were conducted as were full scale tests at NRC’s state of the art flanking facility.    A study using over 700 participants will develop subjective ratings to determine which tested assemblies perform best to human ears.  

Research findings and practical construction details will be incorporated into electronic best practices guides scheduled for release in Japan and Korea.   The goal is enable WFC to penetrate the apartment segment in both countries.  

 


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.

SPF in Post and Beam Housing: Tama Home Case Study

Tama Home, a large Japanese construction company, plans to build over 100 homes in Hokkaido and is poised to construct over 10,000 houses in Japan this fiscal year.
Tama Home, a large Japanese construction company, plans to build over 100 homes in Hokkaido and is poised to construct over 10,000 houses in Japan this fiscal year. In Sapporo and Tomakomai, they entered the market and began designing post and beam homes using SPF dimension lumber. For their Hokkaido home specification, the company uses two-by-four dimension lumber for rafters and re-sized two-by-ten dimension lumber for window frames.

Tama Home has adopted a flat roof design - common for all builders in Hokkaido – that allows for the safe collection and disposal of snow from the roofs. The company uses about 0.80 cubic metres of 10-foot and 14-foot two-by-four dimension lumber in the flat roof construction of their post and beam homes. COFI will continue to support Tama Home and other post and beam builders to expand the use of SPF dimension lumber in Hokkaido and other regions of Japan.

 

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.


The number of wood building permits and starts for the first eleven months in 2009 continuously increased 6.5% and 14.4% to 9,907 buildings and 8,623 buildings respectively compare with the same period in 2008.

Korea Calendar


    WFC Seminars
  • Mar 27, 2010
    CWK Multi-Family, Multi-Storey WFC Technical Seminar: COEX
  • Apr, 2010
    CWK WFC Structural Design Seminar with WUC, KWCA and KWBDA: Seoul

Tradeshow program

  • Mar 10 , 2010
    4th Living & Housing EXPO 2010, BEXCO, Busan
  • Mar 25-29, 2010
    16th Seoul Living Design Fair, COEX, Seoul
  • Mar 25-29, 2010
    10th Daegu Housing Expo, EXCO, Daegu
  • April 7-11, 2010
    10th Daegu Housing Expo, EXCO, Daegu


Did You Know
  • The Korean government has announced the mid-term green house gas reduction target at 4% below 2005 levels (30% of the 2020 BAU levels) on 17 November 2009, making South Korea the first emerging nation to set up a carbon reduction goal.
  • Korean Government is considering the introduction of real estate property tax system depending upon energy efficiency of buildings as a part of national energy saving measures and also carbon tax on fossil fuels for mitigation of climate change.
  • Restoration of Namdaemun (the Great South Gate), Korea's National Treasure no. 1, which was destroyed by fire two years ago, have just begun in February 2010.
  • In 2009, wood construction has expanded its market size and share despite the worldwide economic downturn making it the only construction sector with positive growth compared to the year 2008.
  • A recent research conducted by Seoul City revealed that 9 out of 10 commercial and residential buildings in Seoul were built without any consideration for earthquakes. A 3.0 magnitude earthquake occurred on the outskirt of Seoul on Feb. 9, 2010, reminding Korea that it is not entirely safe from this risk.
  • According to Korea Forest Service data, one family car in Korea produces 8.1 tons of CO2 per year on average, which is equivalent to the amount of CO2 that 1 ha of pine forest absorbs in a year.

Economy

GDP Growth:
In 2009, Korea’s economy grew 0.1 percent in the first quarter, 2.6 percent in the second, 3.2 percent in the third and 0.2 percent in the fourth quarter. The full-year growth rate for 2009 avoided a yearly contraction by expanding 0.2 percent. Korea's economy, which made an impressive turnaround amid a global economic crisis in 2009, is widely expected to carry that momentum into 2010. A majority of economic related institutes envision growth in the 4 percent range, as consumer spending and corporate investment recovers and global economic environment improves.

Trade Surplus:
Korea posted its largest-ever trade surplus in 2009 as imports fell faster than exports amid the global economic downturn. The current account surplus reached $42.67 billion in 2009, a turnaround from a shortfall of $5.78 billion in 2008.

Interest Rate:

Borrowing rates have come down across the board in 2009, as the Bank of Korea kept the benchmark interest rate at an all-time low of 2 percent since February 2009. The central bank slashed the key rate by a total of 3.25 percentage points between October 2008 and February 2009.

Unemployment Rate:

Despite a rebounding economy recently, the nation's job market shows no signs of recovery, with the unemployment rate standing at 3.6 percent in December 2009. Starting an employment recovery project set by the government this year, the Korean government expected that the nation's jobless rate would decrease to the lower 3 percent range within the year.

Won-Dollar Exchange Rate:

The Korean won, which once traded in March 2009 at 1,570 per dollar, has recovered to around 1,163 won. In 2009, the foreign exchange rate rose to an average 1,276 won per dollar, compared with 1,103 won per dollar in 2008.


Housing

Korean Housing Starts Summary:
Korea’s housing starts for the first eleven months in 2009 slightly decreased 3.4% to 58,119 buildings from a year earlier 60,162 buildings reflecting the prolonged depressed property market caused by the synchronized global economic difficulty. Though the Jan.-Nov. YTD starts still showed decreased figure, November 2009 starts showed a significant 37.2% increase compare with the same month in 2008. The construction sector continues to show 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 eleven months in 2009 continuously increased 6.5% and 14.4% to 9,907 buildings and 8,623 buildings respectively compare with the same period in 2008.

Korean WFC market has shown a significant growth over last few years. Wood building permits has reached first time in its history to 10,000 (more precisely 10,184) in 2008. 10,000 wood framed buildings in a year was a dream to the Korean wood industry. The Korean wood industry had foreseen that multi-family housing and big scaled WFC projects can be generated when the market size of wood framed buildings reaches to 10,000 buildings per year.

Year 2009 is expected to mark a second consecutive year that reaches up to 10,000.

 

Wood

Korean Log Imports:
Korean log imports for the first eleven months of 2009 compared with the same period of 2008 decreased 10.9% to 4,525,700 m³. Of this total, Canadian log imports also decreased 6.9% to 242,860 m³ accounting for a 5.37% share in the total Korean log import market. New Zealand continued to mark as the number one log export country to Korea with a 52.37% share followed by the United States (an 19.47% share), Russia (a 9.35% share) and Australia (a 6.48% share).

Korean Softwood Lumber Imports:
Korean softwood lumber imports for the first eleven months of 2009 compared with the same period of 2008 showed an increase of 0.5% to 655,360 m³. Of this total, Canadian softwood lumber imports significantly increased 19.5% to 160,610 m³ accounting for a 24.51% share followed by Chile (a 22.42% share), Russia (a 19.87% share) and New Zealand (a 15.29% share).

S-P-F Shipments to Korea (MFBM)
Owing to the gradual recovery in construction sector and rising in high income households’ consumer sentiment index for future spending from May 2009, S-P-F shipments remarkably increased from the month of May compare 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.)

Canadian SPF has been primarily destined for the growing-wood frame construction sector, as well as for the Korean treated wood industry where SPF is used as feedstock. Canadian SPF shipments to Korea totalled 80,370 MFBM to November YTD 2009, a 47.7% increase from November YTD 2008. The year-end export volume of 2009 is expected to record the highest in history.

Table: Canadian SPF Exports: Volume (MFBM)

 


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 number of wood building permits and starts for the first eleven months in 2009 continuously increased 6.5% and 14.4% to 9,907 buildings and 8,623 buildings respectively compare with the same period in 2008.

Did You Know

  • 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.
  • 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.




Signing ceremony for Eco-village (Tom Rosser-NRCan, Mr. Jeon-Samgaksan Valley, Tai Jeong and Paul Newman-Canada Wood)


Pre-fabricated panels to be assembled


4 story wood framing completed


An Eco-village located in Namyangju-city, about 20km away from downtown Seoul, will consist of 100 units of 3~4 story multi-family and 30 single family detached wood frame houses when completed. The main concept of the Eco-village was to actualize green building and sustainable development by utilizing solar panels, geothermal systems, etc.

Originally the building was planned as a concrete structure, however, the whole story changed dramatically once Mr. Lee of Kwangjang Architects was designated as a chief architect for the project. He started persuading the developer to use more wood as a building material because he believed the building structure should be green first rather than using energy efficient device.

He pointed out “I think wood is the only building material to meet the green building requirements. For that reason I have decided to construct the whole buildings of the Eco-village in light wood frame.” It was hard for him to convince the developer and general contractor that the wood frame construction would be the right solution due to his lack of experience on WFC. But his efforts finally bore fruit by signing an MOU for the technical support on wood frame construction with Canada Wood Korea on Feb. 2009. “It was lucky to meet Canada Wood at the beginning stages of the development and I hope this MOU will be a great opportunity for us to make this project a success.” Mr. Lee stressed after the MOU signing.

Since a 4 story sample house of the Eco-village was selected as the NRCan demonstration project on Aug. 2009, Canada Wood has been working closely with the architect and developer on this project. A month later they participated in the mission program by CWK and had the opportunity to visit various WFC sites in BC Canada.  After the mission, Mr. Lee changed the first floor concrete structure into wood frame as well.

In November 2009 Mr. Tom Rosser, a director general of NRCan visited Korea to attend a media briefing and ground breaking ceremony for the demonstration building.. He was very pleased to provide funding for quality Canadian building materials and advanced Canadian building technology for the construction of the demonstration home as part of this project. “In order to take advantage of all the benefits that wood frame construction has to offer, it is critical that wood is used properly during the construction process.”

He stressed the importance of using wood properly for a building to be energy efficient, environmentally friendly, cost effective and safe. To achieve this goal, on-site training and supervision were one of the major responsibilities for CWK to provide to the architect, developer and general contractor for the Eco Village project.

The goal was achieved by construction supervisor, Mr. Ed DeBoer.  Ed has been with the project since its start, four months ago. “When I arrived, my first objective was to evaluate the skills of the personnel I would be leading. It was clear that the architectural firm, general contractor and the carpentry team needed the technical assistance that Canada Wood could provide. In the four months that I have been in Korea, a lot of changes and adjustments have been made to the drawings to ensure Eco- Village is a success. At this stage of the project, I think we are well on our way in obtaining our objective.”

As Mr. DeBoer mentioned, the first 4 story wood frame multi-story demonstration building in Korea is being built well and will be expected to open to the public at the beginning of March 2010. This demonstration building has played an important role in terms of providing advanced Canadian WFC technologies and assuring wood frame is an excellent fire and sound proofed building to the government officials, big builders and the general public.

 

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.


All participants would like to extend their deep gratitude to the superintendants and the managers at the sites and mill, CMHC for contributing the Best Practice Guide publications and CWC for their presentation on mid-rise wood frame construction in US and Canada.

Advanced Wood Frame Construction Training for Korean Builders and Designers
The annual training program in its 5th year, which focuses on the transfer of Canadian multi-storey multi-family wood frame construction technology and best practices to the Korean wood construction industry, was delivered by BCIT’s Canadian Housing and Construction Centre (CHCC) in collaboration with COFI and CWK, from January 20 to 26, 2010 in Vancouver this year..

The delegation of twenty designers, builders, material distributors and architecture students from Korea were headed by a renowned architect, Choi Sam Young, CEO and Principal of Kawa Design Group, who won the Presidential award for his master planning and design of Dongbeak Apelbaum project, the largest wood frame single family home gated community built in Korea. Also in attendance was a project manager from the University of Mongolia invited by FII.

During the 6 days of lectures and site visits, a mixture of construction sites using wood were observed including various types of residential buildings which included show homes, mixed-use/hybrid buildings in all stages of construction as well as completed institutional and commercial buildings showcasing the use of wood products such as Surrey Central City and Whistler Public Library.  These were studied and admired by all participants. Also, participants were impressed with Interfor’s Acorn Division sawmill and Forintek Division of FPInnonvations, which showed them operations and research behind Canadian wood products.

All participants would like to extend their deep gratitude to the superintendants and the managers at the sites and mill, CMHC for contributing the Best Practice Guide publications and CWC for their presentation on mid-rise wood frame construction in US and Canada.




Did You Know
  • 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 report has been distributed to various concerned parties such as MLTM, Korea Forest Service, Regulatory Reform Committee, National Assembly’s Land, Transport & Maritime Affairs Committee and other association.
Group photo of Korean and Chinese delegation with COFI and Japanese building officials after the seminar
Korea Wood Construction Association (KWCA) has been lobbying the Korean government since the early 2000's in vain for the classification of wood frame construction as a specialty trade due to the small size of the WFC market and lack of effective and compelling arguments for remedying the situation of WFC firms being unable to bid - in their own right as a trade - on wood construction projects and resulting subjugation of WFC as a subcontractor for other designated trades which has been depressing economic prospects for the sector.

Korean construction companies are divided into two general categories according to the Framework Act on the Construction Industry: General Contractor and Specialty Contractor. There are currently 21 Specialty trades including concrete work, steel construction, landscaping, interior construction, etc. This two tiered system was devised to encourage proper execution of construction work, development and advancement of construction technology as well as increasing employment.

Professor Jun Jae Lee, a renowned authority and advocate of wood and wood structures, and others of Seoul National University were commissioned by KWCA and Canada Wood and have produced a report to establish the need, scope of wood frame construction and registration requirements for designation of WFC as a specialty trade by the Ministry of Land, Transportation and Marine Affairs (MLTM).

The report has been distributed to various concerned parties such as MLTM, Korea Forest Service, Regulatory Reform Committee, National Assembly’s Land, Transport & Maritime Affairs Committee and other associations. KWCA has held meetings with these groups to plead their case and have gained support from several parties as the WFC market expands its marketplace in the midst of the recession and from mostly single detached houses into multi-family, commercial and institutional buildings. This report has brought about the strategic alliance of various associations in the wood construction industry in Korea to join forces to achieve what has become their common goal of establishing wood frame construction as a specialty trade.


Won Hwa Choi
Construction Specialist, Canada Wood Korea

Won Hwa Choi has been training professionals in wood-frame house construction since 1997. Wonhwa has been visiting wood-frame construction site with theoretical and practical technique based on training and site experience, then, checking and supporting upgrade technique with on-site training for improve of wood-frame house construction technology in Korea.


In 1997, he established the Building School of Wood frame House, which is the first wfc private school in Korea where he is teaching about the 2x4 wood-frame houses. Total number of trainees amounts to about 4,000.

Won Hwa Choi has been training professionals in wood-frame house construction since 1997.


Won Hwa Choi feels a great sense of pride and fulfillment as he feels the work he conducts and the work conducted by the Canada Wood plays a major role in increasing the quality of the wood-frame houses in Korea


Won Hwa Choi has trained numerous people on wood-frame house construction since 1997. Wonhwa has been visiting wood-frame construction sites with theoretical and practical technique based on training and site experience, then, checking and supporting upgrade technique with on-site training for improve of wood-frame house construction technology in Korea.

As a young man, Wonhwa gained experience in the field of construction while working for construction sites in Saudi Arabia for five years. After returning to Korea, he learned to construct Handcrafted Wood-frame houses at the School of Log Building Korea where his relationship with wood-frame houses started. Subsequently, he travelled to Canada twice to learn more about wood-frame houses.

By chance WH had an opportunity to observe a multi-family wood-frame house construction site in Canada. This was the turning point that peaked his interest in wood-frame housing. Since then, he started to study the theories and practical aspects of light wood-frame house construction in a full fledged manner during the first Carpenter Training Program conducted by the KWCA (Korea Wood Construction Association). While studying the IBC (International Building Code) regulations with the Professional Membership of the ICC (International Code Council), he continued to study the wood frame construction.

In 1997, he established the Building School of Wood frame House, which is the first WFC private school in Korea where he is teaching about 2x4 wood-frame houses. Total number of trainees has amounted to about 4,000 participants. Among them, there were those who want to build their own homes, those, who want to work in the wood frame construction business and those who want to venture into the wood-frame housing business.

In October 2009, he joined the Canada Wood Korea team where he is in charge of the QA and technical training. Currently, he is paying utmost attention to ensure the success of business and managing the Eco Village Demo House Project, Korea’s first four storey wood-frame development. Recently, he participated in the BCIT Builder Training in Canada, where he studied Canada’s outstanding technologies and techniques, and visited various construction sites. He is now trying very hard to apply the additional knowledge to enhance construction of the multi-family wood-frame houses in Korea.  Moreover, he is striving to consolidate the position of the KWCA’s Quality Assurance program and the 5-Star program, by actively participating in the related activities.

He feels a great sense of pride and fulfillment as he feels the work he conducts and the work conducted by Canada Wood plays a major role in increasing the quality of the wood-frame houses in Korea, increasing the level of technology and transfer of the technology required for the construction of multi-family wood-frame developments.