South Korea Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027
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South Korea Construction Market Report Overview
The South Korea construction market size was $220.7 billion in 2022. The market is projected to attain an AAGR of less than 1% from 2024 to 2027. Investments will aid the industry’s growth over the forecast period in the transport, energy, housing, and industrial sectors. Tourism activities will also support the South Korean construction market growth.
South Korea Construction Market Outlook, 2022-2027 ($ Billion)
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The South Korea construction market research report offers a comprehensive understanding of project types and construction activities in the country. It analyzes the mega-project pipeline, focusing on development stages, participants, and listings of major projects in the pipeline. The market report further discusses the key sectors in the construction market and their drivers. Along with reviewing the details of the construction projects, our analysts have elaborated on emerging trends and assessed key risks and opportunities that will influence the France construction market growth in the coming years.
Market Size (2022) | $220.7 billion |
AAGR (2024-2027) | <1% |
Forecast Period | 2023-2027 |
Historical Period | 2018-2022 |
Key Sectors | · Commercial Construction
· Industrial Construction · Infrastructure Construction · Energy and Utilities Construction · Institutional Construction · Residential Construction |
Key Contractors | · SK Holdings Co. Ltd
· Hyundai Engineering & Construction Co Ltd · Samsung Group · Honeywell International Inc · Daewoo Engineering & Construction Co Ltd |
Key Consultants | · Korea Electric Power Corp
· Jacobs Engineering Group Inc · DONG IL Architects & Engineers Co · Heerim Architects & Planners Co Ltd · Kohn Pedersen Fox Associates |
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South Korea Construction Market Segmentation by Sectors
Residential was the leading sector in the South Korea construction market in 2022
The key sectors in the South Korea construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction. In 2022, the residential construction sector accounted for the highest market share, followed by the commercial construction.
Residential construction: The project types in this sector include single-family housing and multi-family housing. The government has plans to provide 2.7 million new homes by 2027 along with easing regulations for redevelopment and reconstruction, which will drive the residential construction industry’s growth during the forecast period.
Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. An improvement in tourism activity, coupled with investment in leisure and hospitality, retail, office, and data center buildings will drive the commercial sector’s growth over the forecast period.
Industrial construction: The project types in this sector include chemical and pharmaceutical plants, manufacturing plants, metal and material production and processing plants, and waste processing plants. The sector’s growth is attributed to the rising investment in the manufacturing sector.
Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. The government’s commitment to invest KRW114.7 trillion ($86.2 billion) in expanding the existing railway network from 4,274km in 2020 to 5,137km by 2030.
Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. The government’s plan to allocate KRW10 trillion ($7.6 billion) until 2027 for the expansion of R&D activities in the medical device industry will provide substantial support to the sector. Furthermore, in November 2022, eight university hospitals announced their plan to open ten branches in greater Seoul, which is poised to drive the institutional construction sector growth in the coming years.
Energy and utilities construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. Investments in the renewable energy sector are fueling the sector’s growth.
South Korea Construction Market Analysis by Sectors, 2022 (%)
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South Korea Construction Market - Competitive Landscape
SK Holdings Co. Ltd emerged as the leading contractor and Korea Electric Power Corp as the leading consultant in the South Korea construction market in 2022
A few of the leading contractors in the South Korea construction market are:
- SK Holdings Co. Ltd
- Hyundai Engineering & Construction Co Ltd
- Samsung Group
- Honeywell International Inc
- Daewoo Engineering & Construction Co Ltd
Domestic contractors account for most of the project pipeline in the South Korea construction market. Firms based in the US are the dominant foreign contractors.
South Korea Construction Market Analysis by Contractors, 2022 (%)
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A few of the leading consultants in the South Korea construction market are:
- Korea Electric Power Corp
- Jacobs Engineering Group Inc
- DONG IL Architects & Engineers Co
- Heerim Architects & Planners Co Ltd
- Kohn Pedersen Fox Associates
Consultants with headquarters outside South Korea are involved in most of the project pipeline by value. Among foreign-based consultants, firms based in the US are involved in majority of the projects in the pipeline.
South Korea Construction Market Analysis by Consultants, 2022 (%)
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South Korea Construction Market - Latest Developments
- In September 2023, the Ministry of Economy and Finance of South Korea announced allocation of approximately KRW2.2 trillion ($1.65 billion) by the year 2028 to construct industrial clusters dedicated to technologies in the field of semiconductor, battery, and other industrial equipment manufacturing.
- As part of the 2023-2027 Tourism Promotion Plan, the South Korean government aims to attract 30 million foreign tourists and generate KRW39.9 trillion ($30 billion) in tourism revenue by 2027. To support this target, the government plans to allocate KRW500 billion ($382.9 million) towards tourism-related initiatives until 2027.
Segments Covered in the Report
South Korea Construction Sectors Outlook (Value, $ Billion, 2018-2027)
- Commercial Construction
- Industrial Construction
- Infrastructure Construction
- Energy and Utilities Construction
- Institutional Construction
- Residential Construction
Scope
This report provides:
- A comprehensive analysis of the construction industry in South Korea.
- Historical and forecast valuations of the construction industry in South Korea, featuring details of key growth drivers.
- Segmentation by sector 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
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Figures
Frequently asked questions
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What was the South Korea construction market size in 2022?
The construction market size in South Korea was $220.7 billion in 2022.
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What will the South Korea construction market growth rate be during the forecast period?
The construction market in South Korea is projected to achieve an AAGR of less than 1% during 2024-2027.
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Which was the leading sector in the South Korea construction market in 2022?
Residential construction was the leading sector in the South Korea construction market in 2022.
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Which are the leading contractors in the South Korea construction market?
The leading contractors in the South Korea construction market are SK Holdings Co. Ltd, Hyundai Engineering & Construction Co Ltd, Samsung Group, Honeywell International Inc, and Daewoo Engineering & Construction Co Ltd among others.
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Which are the leading consultants in the South Korea construction market?
The leading consultants in the South Korea construction market are Korea Electric Power Corp, Jacobs Engineering Group Inc, DONG IL Architects & Engineers Co, Kohn Pedersen Fox Associates, and Heerim Architects & Planners Co Ltd among others.
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