South Korea Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (Q3 2026)
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GlobalData has revised down its growth forecast for the South Korean construction industry for 2026, with the industry now expected to shrink by 2.1% in real terms this year—down from a previous growth forecast of 0.2%. This downward revision is attributed to continued weakness in building construction activity and a decline in construction permits. According to preliminary data released by the Korean Statistical Information Service (KOSIS), the total number of construction permits issued fell by 1.9% year-on-year (YoY) in the first half of 2026, from 59,499 in January–June 2025 to 58,347 in January–June 2026.
Over the remaining part of the forecast period, the South Korean construction industry is expected to register an average annual growth rate of 3.3% between 2027 and 2030, supported by investments in housing and semiconductor manufacturing projects, coupled with investments in the renewable energy sector, in line with the government’s efforts to achieve carbon neutrality by 2050. The government aims to develop 100GW of solar and wind capacity by 2030, with renewables accounting for at least 20% of power generation by that year, up from 11.4% in 2025. The government is also supporting the development of solar modules, wind turbines, and battery energy storage systems, while promoting electric and hydrogen vehicles, with a target for these vehicles to account for 40% of new vehicle sales by 2030. Growth will also be supported by data center construction, with the Ministry of Science and ICT launching a public-private alliance in July 2026 to accelerate large-scale artificial intelligence (AI) data centers, targeting 8.4GW of capacity by 2029 and 18.4GW by 2035, with the first phase requiring around KRW550 trillion ($394.4 billion) in investment.
GlobalData’s Construction in South Korea – Key Trends and Opportunities to 2030 (Q3 2026) 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 (2021–2025) and forecast (2026–2030) 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
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