After declining by 9.5% in 2025, the industry is expected to recover slightly and register annual growth of 0.2% in real terms, supported by the government’s increased investment in renewable energy projects and its initiative to ease the construction permit process, coupled with government allocations under the latest 2026 Budget. According to preliminary data released by the Korean Statistical Information Service (KOSIS), the total value of civil engineering orders grew sharply by 49.7% year on year (YoY) in the first three months of 2026, following an annual decline of 17.7% in 2025.
Over the remainder of the forecast period, the South Korean construction industry is expected to register an average annual growth rate of 3.3% from 2027 to 2030, supported by investments in housing and semiconductor projects, coupled with the government’s target of achieving carbon neutrality by 2050. In April 2026, the government announced that it would invest KRW3.42 trillion ($2.5 billion) in climate change response technologies in 2026, marking a 14.1% increase from KRW3 trillion ($2.1 billion) the previous year, as part of its strategy to achieve the 2035 Nationally Determined Contribution (NDC) targets. The government’s implementation plan covers 330 projects focused on greenhouse gas reduction, climate adaptation, and innovation ecosystem development. The investment plan also includes KRW2.2 trillion ($1.6 billion) for greenhouse gas reduction technologies, including KRW5 billion ($3.6 million) for next-generation solar cells, KRW15.7 billion ($11.3 million) for the localization of small modular reactor (SMR) manufacturing technologies, and KRW2.1 billion for Korean-style fusion reactor design.
The Construction in South Korea - Key Trends and Opportunities to 2030 (Q2 2026) 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 average annual growth rate of 3.3% from 2027 to 2030, supported by investments in housing and semiconductor projects, coupled with the government’s target of achieving carbon neutrality by 2050. In April 2026, the government announced that it would invest KRW3.42 trillion ($2.5 billion) in climate change response technologies in 2026, marking a 14.1% increase from KRW3 trillion ($2.1 billion) the previous year, as part of its strategy to achieve the 2035 Nationally Determined Contribution (NDC) targets. The government’s implementation plan covers 330 projects focused on greenhouse gas reduction, climate adaptation, and innovation ecosystem development. The investment plan also includes KRW2.2 trillion ($1.6 billion) for greenhouse gas reduction technologies, including KRW5 billion ($3.6 million) for next-generation solar cells, KRW15.7 billion ($11.3 million) for the localization of small modular reactor (SMR) manufacturing technologies, and KRW2.1 billion for Korean-style fusion reactor design.
The Construction in South Korea - Key Trends and Opportunities to 2030 (Q2 2026) 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 (2021-2025) and forecast (2026-2030) 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
