The analyst expects the South Korean construction industry to shrink by 9.1% in real terms in 2025, owing to a sluggish housing market, coupled with falling building permits. The total value of construction completed declined by 17% year-on-year (YoY) in the first nine months of 2025. In terms of segmentation, the value of civil engineering works completed fell by 13.2%, while the value of building construction completed decreased by 18.2% during the same period, according to the Korean Statistical Information Service (KOSIS). According to the Ministry of Land, Infrastructure and Transport’s August 2025 housing statistics, the number of unsold homes nationwide after completion stood at 27,584 units as of the end of August 2025, a 1.9% increase from the previous month, which stood at 27,057 units. Growth is also affected by political uncertainty caused by the change in presidency, coupled with the tariffs introduced by US President Donald Trump’s. This weakened the business confidence, potentially leading to delays or the cessation of construction activities.
Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.8% from 2026 to 2029, supported by investments in transport, housing, and semiconductor projects, coupled with the government’s target to achieve carbon neutrality by 2050. Growth will also be supported by the government’s 11th Basic Plan for Electricity Supply and Demand (2024-2038), under which the government aims to increase renewable energy capacity to 121.9GW by 2038, compared to 30GW in 2023. In early November 2025, the government announced a plan to invest KRW10.1 trillion ($7.5 billion) to support the construction of industrial projects and integrate AI in the manufacturing and pharmaceutical industries. In another boost to the industry’s output, in September 2025, the national budget for 2026 was presented to the cabinet outlining a spending of KRW728 trillion ($542.2 billion); this marks an 8.1% increase from the KRW673 trillion ($501.2 billion) budget for 2025.
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q4 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 2.8% from 2026 to 2029, supported by investments in transport, housing, and semiconductor projects, coupled with the government’s target to achieve carbon neutrality by 2050. Growth will also be supported by the government’s 11th Basic Plan for Electricity Supply and Demand (2024-2038), under which the government aims to increase renewable energy capacity to 121.9GW by 2038, compared to 30GW in 2023. In early November 2025, the government announced a plan to invest KRW10.1 trillion ($7.5 billion) to support the construction of industrial projects and integrate AI in the manufacturing and pharmaceutical industries. In another boost to the industry’s output, in September 2025, the national budget for 2026 was presented to the cabinet outlining a spending of KRW728 trillion ($542.2 billion); this marks an 8.1% increase from the KRW673 trillion ($501.2 billion) budget for 2025.
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q4 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.
Report 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
