South Korea Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary
GlobalData expects the South Korean construction industry to record an annual growth of 2.4% this year, but the short-term outlook is fairly gloomy. According to the Korean Statistical Information Service (KOSIS), the construction industry’s value add rose by 4.1% year on year (YoY) in Q2 2023, preceded by Y-o-Y growth of 6.8% in Q1 2023 and 3.2% in Q4 2022. However, the pace of growth is expected to begin to slow in the coming quarters, and GlobalData expects the South Korean construction industry to record an annual average decline of 1.5% between 2024 and 25. This slowdown is, in part, due to a softening of external demand and elevated borrowing costs, which is expected to lead to a decline in new investment and a continued fall in new orders.
The industry's output is expected to record an annual average growth of 2.6% from 2026 to 2027, supported by investment in the energy, transportation, and industrial sectors. According to the Ministry of Trade, Industry, and Energy’s (MOTI) 10th Basic Plan on Electricity Supply and Demand, the government expects to add 621.8TWh of energy supply by 2030 and 667.3TWh by 2036, with nuclear energy accounting for 32.4% in 2030 and 34.6% in 2036, renewable energy accounting for 21.6% and 30.6%, LNG accounting for 22.9% and 9.3%, coal accounting for 19.7% and 14.4%, hydrogen and ammonia accounting for 2.1% and 7% and other energy projects accounting for 1.3% in 2030 and 4.0% in 2036.
The 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.
This report provides a comprehensive analysis of the construction industry in South Korea. It provides -
- Historical (2018-2022) and forecast (2023-2027) 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
- Identify and evaluate market opportunities using GlobalData'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 GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: South Korea, Key Economic Indicators
- Table 3: South Korea, Commercial Construction Output by Project Type (Real % Change), 2018–27
- Table 4: South Korea, Top Commercial Construction Projects by Value
- Table 5: South Korea, Industrial Construction Output by Project Type (Real % Change), 2018–27
- Table 6: South Korea, Top Industrial Construction Projects by Value
- Table 7: South Korea, Infrastructure Construction Output by Project Type (Real % Change), 2018–27
- Table 8: South Korea, Top Infrastructure Construction Projects by Value
- Table 9: South Korea, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27
- Table 10: South Korea, Top Energy and Utilities Construction Projects by Value
- Table 11: South Korea, Institutional Construction Output by Project Type (Real % Change), 2018–27
- Table 12: South Korea, Top Institutional Construction Projects by Value
- Table 13: South Korea, Residential Construction Output by Project Type (Real % Change), 2018–27
- Table 14: South Korea, Top Residential Construction Projects by Value
- Table 15: South Korea, Key Contractors
- Table 16: South Korea, Key Consultants
- Table 17: South Korea, Construction Output Value (Real, $ Million)
- Table 18: South Korea, Construction Output Value (Nominal, KRW Billion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: North-East Asia, Construction Output (Real % Change), 2021–27
- Figure 2: South Korea, Construction Output by Sector (Real % Change), 2021–23 and 2024–27
- Figure 3: South Korea, Risk Summary
- Figure 4: South Korea, Risk Regional Comparison
- Figure 5: South Korea, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018–27
- Figure 6: South Korea, Construction Output Value, by Sector (Real, $ Million), 2018–27
- Figure 7: South Korea, Construction Value Add (KRW Trillion, 2015 Chained Prices, Unadjusted)
- Figure 8: South Korea, Construction Production Index (2015=100)
- Figure 9: South Korea, Total Value of Construction Completed, Constant Prices, In KRW Billion
- Figure 10: South Korea, Total Value of Construction Orders Received (Current Prices, KRW Billion)
- Figure 11: South Korea, Total Number of Building Construction Permits
- Figure 12: South Korea, Construction Projects Momentum Index
- Figure 13: North-East Asia, Construction Projects Momentum Index
- Figure 14: South Korea, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 15: South Korea, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: South Korea, Gross Floor Area of Commercial Construction Permits, In Thousand m2
- Figure 17: South Korea, Wholesale and Retail Trade Value Add (KRW Billion, 2015 Chained Prices, Unadjusted)
- Figure 18: South Korea, Accommodation and Food Services Value Add (KRW Billion, 2015 Chained Prices, Unadjusted)
- Figure 19: South Korea, Retail Sales Value and Volume Index, (2015=100)
- Figure 20: South Korea, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 21: South Korea, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: South Korea, Gross Floor Area of Industrial Construction Permits, In Thousand m2
- Figure 23: South Korea, Manufacturing Value Add (KRW Billion, 2015 Chained Prices, Unadjusted)
- Figure 24: South Korea, Industrial Production Index (2015=100)
- Figure 25: South Korea, Total exports (in US$ Billion)
- Figure 26: South Korea, Total Value of Construction Contracts Received for Industrial Plants, (KRW Billion), In Current Prices
- Figure 27: South Korea, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 28: South Korea, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: South Korea, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 30: South Korea, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: South Korea, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 32: South Korea, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: South Korea, Gross Floor Area of Permits Issued for Educational and Social Use, In Thousand m2
- Figure 34: South Korea, Education Sector Value Add (KRW Billion, 2015 Chained Prices, Unadjusted)
- Figure 35: South Korea, Human Health and Social Work Activities Value Add (KRW Billion, 2015 Chained Prices, Unadjusted)
- Figure 36: South Korea, Residential Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 37: South Korea, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 38: South Korea, Residential Construction Permits (Total Number)
- Figure 39: South Korea, Real Estate Value Add (KRW Trillion, 2015 Chained Prices)
- Figure 40: South Korea, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 41: South Korea, Headquarters of Key Consultants (% of Total Project Pipeline)
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