S KOREAN H1 CONSTRUCTION ORDERS STAGE BIGGEST FALL IN 6YRS.

SEOUL, Aug. 2 Asia Pulse - Domestic construction orders in the first six months of the year fell by the largest amount since the 1997-98 foreign exchange crisis, signalling a serious setback to second-half economic growth, government data released on Sunday showed.

The total value of construction orders, not adjusted for inflation, fell 22.2 per cent, or 9.8 trillion won, to 31.7 trillion won in the first half of the year, down from the same period 2003, the National Statistical Office said.

The drop was the largest since 1998, when the figure decreased by 12 trillion won in the January-June period.

Construction investment served as a main engine for economic expansion last year, but cooled down drastically following a series of government measures to curtail surging housing prices.

The fall in construction orders, a harbinger of construction activity for the next six months, is expected to take a toll on the country's economic growth in the latter half, analysts said.

Based on local think tanks' estimate that a 3 trillion-won increase in construction investment contributes to a 0.5-percentage-point growth in gross domestic product (GDP), the first-half drop may ...