The analyst expects the South Korean construction industry to shrink by 6.2% in real terms in 2025, owing to high construction costs, rising household debt, a sluggish housing market, and ongoing political uncertainty in the country, coupled with uncertainty over the implementation of US tariffs. These factors have created an unfavorable business climate, resulting in project cancellations and delays. In January 2025, the South Korean government halted construction on a major hydrogen fuel cell power project, valued at KRW555.9 billion ($414 million), due to financial difficulties. The project, which was already underway, faced escalating costs and funding challenges that ultimately led to its cancellation. Uncertainty over the US’ implementation of a 25% tariff on South Korean goods is likely to pose a downside risk to the industry’s outlook in the short term.
Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.6% from 2026 to 2029, supported by investments in transport infrastructure, along 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 this goal by constructing 30GW of solar power capacity and 14.3GW of offshore wind power capacity by 2030
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q2 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 2.6% from 2026 to 2029, supported by investments in transport infrastructure, along 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 this goal by constructing 30GW of solar power capacity and 14.3GW of offshore wind power capacity by 2030
The Construction in South Korea - Key Trends and Opportunities to 2029 (Q2 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
