Construction Market in South Korea Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Market Report Covers Construction Companies in South Korea and is Segmented by Sector (Residential Construction, Commercial Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction). The market size and forecasts for the South Korean construction market are provided in terms of value (USD billion) for all the above segments.

South Korea Construction Market Size

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South Korea Construction Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 4.05 %
Market Concentration Low

Major Players

South Korea Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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South Korea Construction Market Analysis

The size of the South Korea construction market is USD 130 billion in the current year and is anticipated to register a CAGR of over 4.05% during the forecast period

  • COVID-19 had a significant impact on the construction industry in South Korea, with supply chain issues, a halt to planning and inspection timelines, and new measures to ensure worker health and safety.
  • Following a 1.4% decline in 2020, the South Korean construction industry contracted by 1.4% in 2021. The downward revision was due to increased COVID-19 infection rates, a drop in construction output in the first three quarters of 2021, and disruptions in construction activity.
  • The construction industry's value add decreased by 0.9% year on year (Y-o-Y) in real terms in the third quarter of 2021, according to the Korean Statistical Information Service (KOSIS), following a decline of 3.4% in the second quarter and growth of 3.2% in the first.
  • In February 2021, the government announced that it would build 830,000 houses across the country over the next four years, with 323,000 in Seoul and 293,000 in nearby Gyeonggi Province and Incheon.
  • In 2022, the industry recovered, growing by 4.1%, due to significant spending outlined in the proposed budget for 2022 and the implementation of planned energy projects.

South Korea Construction Market Trends

This section covers the major market trends shaping the South Korea Construction Market according to our research experts:

Increase in Construction Permits Driving the Market

The vast majority of the 232,000 construction permits issued in South Korea in 2021 were used for residential and commercial buildings. They are far ahead of other permit uses, with 82,860 and 85,100 permits, respectively. Educational and social use buildings received the fewest building permits, with only 8,527 issued.

In total, 545,400 housing construction permits were issued in South Korea in 2021. About 45% of housing construction permits were for homes ranging in size from 60 to 85 sq m.

With over 186,000 housing units, Gyeonggi province had the most housing construction permits in South Korea.

In total, there were 17,000 unsold housing units in South Korea in 2021, down from around 19,000 the year before. With over 4,300 unsold housing units, Gyeongnam province had the highest number of unsold housing units among South Korea's metropolitan cities and provinces that year.

The total cost of general construction in South Korea in 2020 amounted to around USD 186.7 billion. The sector dealing with site preparation and foundation work had the highest costs in the specialized construction field, at around USD 39.8 billion.

South Korea Construction Market - Number of Construction Permit

Growth in the Real Estate Sector Boosting the Construction Industry

South Korea's real estate sector generated a gross domestic product (GDP) of around USD 110 billion in 2021. South Koreans regarded real estate as one of their most valuable investment assets.

The number of commercial building transactions in South Korea in October 2021 was around 31,000, slightly down from around 34,000 the month before.

South Korea's commercial building stock reached 1.32 million units in 2020, up from 1.29 million the previous year. The number of commercial buildings in South Korea has steadily increased in the last decade.

With around 268,000 units, Gyeonggi province in South Korea had the most commercial buildings in 2020. With about 126,000 and 121,000 units, Seoul and Gyeongbuk came in second and third, respectively.

In 2020, South Korea had around 286 real estate investment trusts (REITs), up slightly from the previous year. In recent years, the number of REITs has steadily increased. The total assets of REITs amounted to around USD 50.18 billion in 2020, up from around USD 41 billion the previous year.

South Korea Construction Market - Gross Domestic Product, in Real estate sector

South Korea Construction Industry Overview

The report covers the major players operating in the South Korean construction market. The market is moderately fragmented, with some major players like Samsung C&T., Hyundai E&C, GS E&C, Daewoo E&C, etc. South Korea's local construction market has grown significantly, mainly due to a significant increase in private residential construction by contractors.

South Korea Construction Market Leaders

  1. Samsung C&T

  2. Hyundai E&C

  3. GS E&C

  4. Daewoo E&C

  5. POSCO E&C

*Disclaimer: Major Players sorted in no particular order

South Korea Construction Market Market Concentration
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South Korea Construction Market News

  • September 2022: GS Engineering and Construction partnered with German chemical giant BASF to jointly modularize a carbon capture solution, which would work as the framework for their future projects. The latest deal would focus on co-developing and translating BASF's OASE blue technology - an optimized large-scale post-combustion capture technology -- into a modular carbon capture solution. According to GS EC., OASE blue enables its user to capture carbon selectively through a liquid solution. BASF will provide data on carbon capture technology, while GS EC will standardize related designs and construction through its experience in handling large-scale petrochemical plant projects.
  • March 2022: GS E&C signed a memorandum of understanding (MOU) on the modularization of biodiesel production facilities with Haldor Topsoe, a Danish company specializing in carbon reduction technologies. GS E&C plans to standardize and modularize Haldor Topsoe's HydroFlex biodiesel production technology. Haldor Topsoe will provide information on its biodiesel production technology. At the same time, GS E&C will standardize the design and construction of the plant based on its modularization expertise accumulated through large-scale refinery and chemical plant projects.

South Korea Construction Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Opportunities

    4. 4.4 Market Restraints

    5. 4.5 Value Chain/Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Current Economic and Construction Market Scenario

    8. 4.8 Technological Innovations in the Construction Sector

    9. 4.9 Impact of Government Regulations and Initiatives on the Industry

    10. 4.10 Impact of COVID - 19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Sector

      1. 5.1.1 Residential Construction

      2. 5.1.2 Commercial Construction

      3. 5.1.3 Industrial Construction

      4. 5.1.4 Infrastructure (Transportation) Construction

      5. 5.1.5 Energy and Utilities Construction

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration

    2. 6.2 Company Profiles

      1. 6.2.1 Samsung C&T

      2. 6.2.2 Hyundai E&C

      3. 6.2.3 GS E&C

      4. 6.2.4 Daewoo E&C

      5. 6.2.5 POSCO E&C

      6. 6.2.6 Daelim Industrial

      7. 6.2.7 Hyundai Engineering

      8. 6.2.8 Lotte E&C

      9. 6.2.9 HDC (Hyundai Development Company)

      10. 6.2.10 Hoban Construction*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

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South Korea Construction Industry Segmentation

Construction is a general term meaning the art and science of forming objects, systems, or organizations. Construction is an industry that includes the erection, maintenance, and repair of buildings and other immobile structures and the building of roads and service facilities that become integral parts of structures and are essential to their use.

The South Korean construction market is segmented by sector (residential construction, commercial construction, industrial construction, infrastructure (transportation) construction, and energy and utilities construction). The report offers market size and forecasts for the South Korean construction market in value (USD billion) for all the above segments.

By Sector
Residential Construction
Commercial Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction
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South Korea Construction Market Research FAQs

The South Korea Construction Market is projected to register a CAGR of greater than 4.05% during the forecast period (2024-2029)

Samsung C&T, Hyundai E&C, GS E&C, Daewoo E&C and POSCO E&C are the major companies operating in the South Korea Construction Market.

The report covers the South Korea Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Construction in South Korea Industry Report

Statistics for the 2023 Construction in South Korea market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Construction in South Korea analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Construction Market in South Korea Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)