Construction in South Korea – Key Trends and Opportunities to 2024

Prior to the Coronavirus (COVID-19) outbreak, South Korea’s construction industry was struggling, with the industry’s value-add declining by 2.5% in real terms in 2019, owing to weakness in the residential construction sector, as rising housing prices weighed on the demand for residential buildings.

South Korea fared better than most of the countries in controlling the COVID-19 pandemic, without having to impose a nation-wide lockdown. As a result, construction activities were not severely affected, which helped the industry to register growth in the first half of the year. According to the Korean Statistical Information Service (KOSIS), the industry’s value-add at 2015 chained prices declined marginally by 0.2% year-on-year in Q2 2020, following growth of 3% year-on-year in the previous quarter. However, GlobalData expects the industry to shrink by 1.1% this year, owing to uncertainty in the industry that could stem from falling building permits, falling foreign direct investment (FDI), weak investor confidence in the short-term and disruptions to construction activities amid the pandemic.

Over the remaining part of the forecast period, the industry is expected to pick up pace and grow by an annual average of 3.7% between 2021-2024. The industry’s output will be supported by improving investor confidence, increasing the value of orders received for construction and the government’s focus on green infrastructure. In July 2020, the government announced a plan to invest KRW160 trillion (US$133.5 billion) between 2020-2025 on a ‘Korean New Deal’ program, which includes investments in the areas of renewable energy, electric vehicles, 5G, big data and artificial intelligence. The industry will also be supported by the government’s focus on curbing rising property prices in an effort to cool the overheated property market, coupled with its investments on residential buildings to address the housing shortage

This 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 (2015-2019) and forecast (2020-2024) 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 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.

Table of Contents

Table of Contents

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. COVID-19 Status

4 Construction Outlook

4.1. All Construction

4.1.1. Outlook

4.1.2. Latest news and developments

4.1.3. Construction Projects Momentum Index

4.2. Commercial Construction

4.2.1. Outlook

4.2.2. Project analytics

4.2.3. Latest news and developments

4.3. Industrial Construction

4.3.1. Outlook

4.3.2. Project analytics

4.3.3. Latest news and developments

4.4. Infrastructure Construction

4.4.1. Outlook

4.4.2. Project analytics

4.4.3. Latest news and developments

4.5. Energy and Utilities Construction

4.5.1. Outlook

4.5.2. Project analytics

4.5.3. Latest news and developments

4.6. Institutional Construction

4.6.1. Outlook

4.6.2. Project analytics

4.6.3. Latest news and developments

4.7. Residential Construction

4.7.1. Outlook

4.7.2. Project analytics

4.7.3. 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

8 About GlobalData

8.1. GlobalData Construction

8.2. Disclaimer

8.3. Contact Us

List of Tables

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), 2015-2024

Table 4: South Korea, Top Commercial Construction Projects by Value

Table 5: South Korea, Industrial Construction Output by Project Type (real % change), 2015-2024

Table 6: South Korea, Top Industrial Construction Projects by Value

Table 7: South Korea, Infrastructure Construction Output by Project Type (real % change), 2015-2024

Table 8: South Korea, Top Infrastructure Construction Projects by Value

Table 9: South Korea, Energy and Utilities Construction Output by Project Type (real % change), 2015-2024

Table 10: South Korea, Top Energy and Utilities Construction Projects by Value

Table 11: South Korea, Institutional Construction Output by Project Type (real % change), 2015-2024

Table 12: South Korea, Top Institutional Construction Projects by Value

Table 13: South Korea, Residential Construction Output by Project Type (real % change), 2015-2024

Table 14: South Korea, Top Residential and Mixed-Use Construction Projects by Value

Table 15: South Korea, Key Contractors

Table 16: South Korea, Key Consultants

Table 17: South Korea, Construction Output Value (Real, US$ Million)

Table 18: South Korea, Construction Output Value (nominal, KRW Million)

Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: North-East Asia, Construction Output (real % change), 2020

Figure 2: South Korea, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: South Korea, COVID-19 Confirmed Cases

Figure 4: South Korea, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2015-2024

Figure 5: South Korea, Construction Output Value, by Sector (Real, US$ Million), 2015-2024

Figure 6: South Korea, Construction Value-Add (KRW trillion, 2015 chained prices)

Figure 7: South Korea, Construction Production Index, 2015=100

Figure 8: South Korea, Total Value of Construction Completed, % Change Y-o-Y

Figure 9: South Korea, Total Value of Construction Orders Received, % Change Y-o-Y

Figure 10: South Korea, Total Number of Building Construction Permits, % Change Y-o-Y

Figure 11: South Korea, Construction Projects Momentum Index

Figure 12: South Korea, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 13: South Korea, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: South Korea, Total Tourist Arrivals (In thousands)

Figure 15: South Korea, Commercial Construction Permits (Total Number)

Figure 16: South Korea, Value and Volume Indices of Retail Sales, % Change Y-o-Y (2015=100)

Figure 17: South Korea, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 18: South Korea, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 19: South Korea, Industrial Construction Permits (Total Number)

Figure 20: South Korea, Manufacturing value-add (KRW trillion, 2015 chained prices)

Figure 21: South Korea, Industrial Production Index, 2015=100

Figure 22: South Korea, Total Value of Construction Contracts Received for the Industrial Plants (KRW trillion)

Figure 23: South Korea, Total Exports (US$ Billion)

Figure 24: South Korea, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 25: South Korea, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 26: South Korea, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 27: South Korea, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 28: South Korea, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 29: South Korea, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: South Korea, Construction Permits for Educational and Social Use (Total Number)

Figure 31: South Korea, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 32: South Korea, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 33: South Korea, Residential Construction Permits (Total Number)

Figure 34: South Korea, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 35: South Korea, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 36: GlobalData at a Glance

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