Summary
Prior to the Coronavirus (COVID-19) outbreak, South Korea’s construction industry was struggling, with the industry’s value-add declining by 2.5% in real terms in 2019, owing to weakness in the residential construction sector, as rising housing prices weighed on the demand for residential buildings.
South Korea fared better than most of the countries in controlling the COVID-19 pandemic, without having to impose a nation-wide lockdown. As a result, construction activities were not severely affected, which helped the industry to register growth in the first half of the year. According to the Korean Statistical Information Service (KOSIS), the industry’s value-add at 2015 chained prices declined marginally by 0.2% year-on-year in Q2 2020, following growth of 3% year-on-year in the previous quarter. However, the publisher expects the industry to shrink by 1.1% this year, owing to uncertainty in the industry that could stem from falling building permits, falling foreign direct investment (FDI), weak investor confidence in the short-term and disruptions to construction activities amid the pandemic.
Over the remaining part of the forecast period, the industry is expected to pick up pace and grow by an annual average of 3.7% between 2021-2024. The industry’s output will be supported by improving investor confidence, increasing the value of orders received for construction and the government’s focus on green infrastructure. In July 2020, the government announced a plan to invest KRW160 trillion (US$133.5 billion) between 2020-2025 on a ‘Korean New Deal’ program, which includes investments in the areas of renewable energy, electric vehicles, 5G, big data and artificial intelligence. The industry will also be supported by the government’s focus on curbing rising property prices in an effort to cool the overheated property market, coupled with its investments on residential buildings to address the housing shortage
This report provides detailed market analysis, information and insights into the South Korean construction industry, including -
Scope
This report provides a comprehensive analysis of the construction industry in South Korea. It provides -
Reasons to Buy
Prior to the Coronavirus (COVID-19) outbreak, South Korea’s construction industry was struggling, with the industry’s value-add declining by 2.5% in real terms in 2019, owing to weakness in the residential construction sector, as rising housing prices weighed on the demand for residential buildings.
South Korea fared better than most of the countries in controlling the COVID-19 pandemic, without having to impose a nation-wide lockdown. As a result, construction activities were not severely affected, which helped the industry to register growth in the first half of the year. According to the Korean Statistical Information Service (KOSIS), the industry’s value-add at 2015 chained prices declined marginally by 0.2% year-on-year in Q2 2020, following growth of 3% year-on-year in the previous quarter. However, the publisher expects the industry to shrink by 1.1% this year, owing to uncertainty in the industry that could stem from falling building permits, falling foreign direct investment (FDI), weak investor confidence in the short-term and disruptions to construction activities amid the pandemic.
Over the remaining part of the forecast period, the industry is expected to pick up pace and grow by an annual average of 3.7% between 2021-2024. The industry’s output will be supported by improving investor confidence, increasing the value of orders received for construction and the government’s focus on green infrastructure. In July 2020, the government announced a plan to invest KRW160 trillion (US$133.5 billion) between 2020-2025 on a ‘Korean New Deal’ program, which includes investments in the areas of renewable energy, electric vehicles, 5G, big data and artificial intelligence. The industry will also be supported by the government’s focus on curbing rising property prices in an effort to cool the overheated property market, coupled with its investments on residential buildings to address the housing shortage
This report provides detailed market analysis, information and insights into the South Korean construction industry, including -
- The South Korean construction industry's 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
Scope
This report provides a comprehensive analysis of the construction industry in South Korea. It provides -
- Historical (2015-2019) and forecast (2020-2024) 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 publisher'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 publisher'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-glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
8 About the Publisher
List of Tables
List of Figures
