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South Korea Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q3 2024)

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    Report

  • 50 Pages
  • September 2024
  • Region: South Korea
  • GlobalData
  • ID: 5765815
Description Jump to:
The Construction in South Korea - Key Trends and Opportunities to 2028 (Q3 2024) report provides detailed market analysis, information, and insights into the South Korean construction industry, including:
  • The South Korean construction industry growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South Korean construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
The South Korean construction industry is expected to contract by 1.9% in real terms in 2024 and 1.2% in 2025, owing to a decline in Foreign Direct Investment (FDI), rising construction material prices, high interest, and inflation rate, and a decline in the number of building permits, coupled with ongoing weakness in the residential construction sector and rising fiscal deficit. According to the Korean Statistical Information Service (KOSIS), the total number of permits issued for construction declined by 11.4% year-on-year (YoY) in the first seven months of 2024, while the total gross floor area of construction permits issued fell by 16.6% YoY over the same period. Residential building permits alone declined by 17.8% YoY in January-July 2024, following Y-o-Y declines of 8.9% in commercial building permits and 3.7% in industrial buildings permit issued over the same period. According to the Ministry of Trade, Industry and Energy (MOTIE), FDI pledges fell by 13.1% YoY in the first half of 2024, reaching KRW20.1 trillion ($15.3 billion).

Over the remainder of the forecast period, from 2026 to 2028, the construction industry in South Korea is expected to record an annual average growth of 2.7%, supported by an increase in investment in the semiconductor industry, transport infrastructure, and renewable energy projects, coupled with the government’s plan to install 14.3GW of offshore wind energy by 2030. In line with this, in August 2024, the government reported that it will launch tenders for the 7-8GW of offshore wind power plant by 2026. Furthermore, in July 2024, the Haewoori Offshore Wind Project was approved by the government, which includes the construction of a 1.5GW floating wind farm in Ulsan by 2028. Growth over the forecast period will also be supported by the government's goal of attaining a 10% global market share in system semiconductors by 2030. In line with this, in July 2024, domestic chip supplier SK Hynix announced an investment of KRW9.4 trillion ($7.2 billion) for the construction of four semiconductor manufacturing plants in an area of 4.2 million m2 in Yongin by 2027.

Scope

This report provides a comprehensive analysis of the construction industry in South Korea. It provides:

  • Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in South Korea, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the analyst's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
  • About the Analyst
  • Contact the Publisher
List of Tables
Table 1: Construction Industry Key Data
Table 2: South Korea, Key Economic Indicators
Table 3: South Korea, Commercial Construction Output by Project Type (Real % Change), 2019-28
Table 4: South Korea, Top Commercial Construction Projects by Value
Table 5: South Korea, Industrial Construction Output by Project Type (Real % Change), 2019-28
Table 6: South Korea, Top Industrial Construction Projects by Value
Table 7: South Korea, Infrastructure Construction Output by Project Type (Real % Change), 2019-28
Table 8: South Korea, Top Infrastructure Construction Projects by Value
Table 9: South Korea, Energy and Utilities Construction Output by Project Type (Real % Change), 2019-28
Table 10: South Korea, Top Energy and Utilities Construction Projects by Value
Table 11: South Korea, Institutional Construction Output by Project Type (Real % Change), 2019-28
Table 12: South Korea, Top Institutional Construction Projects by Value
Table 13: South Korea, Residential Construction Output by Project Type (Real % Change), 2019-28
Table 14: South Korea, Top Residential Construction Projects by Value
Table 15: South Korea, Key Contractors
Table 16: South Korea, Key Consultants
Table 17: South Korea, Construction Output Value (Real, $ Million)
Table 18: South Korea, Construction Output Value (Nominal, KRW Billion)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: North-East Asia, Construction Output (Real % Change), 2022-28
Figure 2: South Korea, Construction Output by Sector (Real % Change), 2022-24 and 2025-28
Figure 3: South Korea, Risk Summary
Figure 4: South Korea, Risk Regional Comparison
Figure 5: South Korea, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019-28
Figure 6: South Korea, Construction Output Value, by Sector (Real, $ Million), 2019-28
Figure 7: South Korea, Construction Value Add (KRW Trillion, 2020 Chained Prices, Unadjusted)
Figure 8: South Korea, Construction Production Index (2015=100)
Figure 9: South Korea, Total Value of Construction Completed, Constant Prices, KRW Billion, % Change, YoY
Figure 10: South Korea, Total Value of Construction Orders Received (Current Prices, KRW Billion)
Figure 11: South Korea, Total Number of Building Construction Permits
Figure 12: South Korea, Construction Projects Momentum Index
Figure 13: North-East Asia, Construction Projects Momentum Index
Figure 14: South Korea, Commercial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 15: South Korea, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: South Korea, Gross Floor Area of Commercial Construction Permits, In Thousand m2
Figure 17: South Korea, Retail Sales Value and Volume Index, (2015=100)
Figure 18: South Korea, Industrial Construction Output by Project Type (Real, $ Million), 2019-28
Figure 19: South Korea, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 20: South Korea, Gross Floor Area of Industrial Construction Permits, In Thousand m2
Figure 21: South Korea, Manufacturing Value Add (KRW Billion, 2020 Chained Prices, Unadjusted)
Figure 22: South Korea, Industrial Production Index (2015=100)
Figure 23: South Korea, Total exports ($ Billion)
Figure 24: South Korea, Total Value of Construction Contracts Received for Industrial Plants, (KRW Billion), In Current Prices
Figure 25: South Korea, Infrastructure Construction Output by Project Type (Real, $ Million), 2019-28
Figure 26: South Korea, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: South Korea, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019-28
Figure 28: South Korea, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: South Korea, Institutional Construction Output by Project Type (Real, $ Million), 2019-28
Figure 30: South Korea, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: South Korea, Gross Floor Area of Permits Issued for Educational and Social Use, In Thousand m2
Figure 32: South Korea, Education Sector Value Add (KRW Billion, 2020 Chained Prices, Unadjusted)
Figure 33: South Korea, Human Health and Social Work Activities Value Add (KRW Billion, 2020 Chained Prices, Unadjusted)
Figure 34: South Korea, Residential Construction Output by Project Type (Real, $ Million), 2019-28
Figure 35: South Korea, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 36: South Korea, Residential Construction Permits (Total Number)
Figure 37: South Korea, Real Estate Value Add (KRW Trillion, 2020 Chained Prices)
Figure 38: South Korea, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 39: South Korea, Headquarters of Key Consultants (% of Total Project Pipeline)

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