The analyst expects the South Korean construction industry to shrink by 3.4% in real terms in 2025, owing to a sluggish housing market, rising household debt, falling building permits, lower civil engineering activities, and ongoing political uncertainty in the country, coupled with volatile exchange rates, higher interest rates, and rising construction material prices. According to the Korean Statistical Information Service (KOSIS), the total number of permits issued for construction fell by 11.6% year on year (YoY) in 2024, preceded by an annual decline of 25.3% in 2023. Moreover, the annual total value of construction orders received for civil engineering works fell by 1.9% YoY in 2024, preceded by an annual growth of 22.7% in 2023. These factors have weighed heavily on the construction industry and created an unfavorable business climate resulting in cancellations and delays of projects. According to the Korea Land and Housing Corporation (LH), 25 public housing projects were canceled in 2024 with a total value of KRW2.7 trillion ($2.1 billion), compared to the cancellation of only five such projects valued at KRW374.9 billion ($286.9 million) in 2023.
Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.7% from 2026 to 2029, supported by investments in the renewable energy, transport, housing, and commercial sectors, coupled with the government’s target of achieving carbon neutrality by 2050. The government aims to increase the share of renewable energy in the total electricity mix from 9.2% in March 2024 to 21.6% by 2030 and 32.9% by 2038. The country intends to reach its goal by constructing 30GW of solar power capacity by 2030 and 14.3GW of offshore wind power capacity within the same timeframe. In line with this, in December 2024, the Ministry of Trade, Industry, and Energy (MOTIE) awarded 1.9GW of renewable energy projects
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into the South Korean construction industry, including:
Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.7% from 2026 to 2029, supported by investments in the renewable energy, transport, housing, and commercial sectors, coupled with the government’s target of achieving carbon neutrality by 2050. The government aims to increase the share of renewable energy in the total electricity mix from 9.2% in March 2024 to 21.6% by 2030 and 32.9% by 2038. The country intends to reach its goal by constructing 30GW of solar power capacity by 2030 and 14.3GW of offshore wind power capacity within the same timeframe. In line with this, in December 2024, the Ministry of Trade, Industry, and Energy (MOTIE) awarded 1.9GW of renewable energy projects
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q1 2025) 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 (2020-2024) and forecast (2025-2029) 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 our 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 business strategies 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-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures