Latest News- Construction Market in South Korea: Private is expected to lead the Type segment during 2025-2029

The Construction Market in South Korea is being driven by Growing demand for modular houses

The Construction Market in South Korea is expected to grow at a CAGR of 5.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 61.6 billion. South Korea's construction market is experiencing a significant surge due to the government's commitment to investing in public infrastructure, with an estimated USD51.8 billion expenditure in 2024, marking a 2.8% increase from the previous year. Despite low interest rates and substantial fiscal stimulus, this trend is expected to continue as a key driver of economic growth. South Korean engineering, procurement, and construction (EPC) firms are prominent players in large-scale housing, transportation, plant, and commercial projects, both domestically and internationally. Notably, multibillion-dollar projects are the primary focus for large EPC firms, while smaller but highly experienced SMEs play a crucial role in executing smaller projects within the industry. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Type
  • Private
  • Public
• End-user
  • Residential
  • Non-residential
  • Civil works
• Geography
  • South Korea

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing demand for modular houses
• Rising adoption of dry construction techniques
• Rise in number of smart cities

However, the market also witnesses some limitations, which are as follows:

• Shortage of workers in construction sector
• Rise in cost of construction
• Uncertain macroeconomic conditions

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Market Scope in Construction Market in South Korea Research Report

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Research Analysis Overview

The construction industry in South Korea encompasses various project types, including manufacturing plants for material production, semiconductor manufacturing, pharmaceuticals, and renewable energy infrastructure. Transport and housing redevelopment projects are also significant, with regulations guiding reconstruction efforts. Commercial construction includes water infrastructure, hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and data centers. Leisure and hospitality, tourism industry, and educational buildings are key sectors. Industry trends include a focus on sustainability and innovation, while key risks include regulatory changes and economic fluctuations. The mega-project pipeline includes transportation, housing, and energy projects in different development stages. Participants include local and international construction firms, engineering companies, and government agencies. Other sectors include waste processing plants and renewable energy infrastructure.

Market Research Overview

The South Korean construction and engineering market encompasses businesses specializing in non-residential construction, encompassing engineering service providers and Engineering, Procurement, and Construction (EPC) contractors. This market excludes entities involved in residential construction. According to Technavio, the global construction and engineering market expansion is attributed to several key factors. Primarily, substantial investment in urban infrastructure development is a significant driver, as urban populations continue to grow and demand escalates for advanced transportation, communication services, and essential utilities, such as water and renewable energy infrastructure. Additionally, housing redevelopment projects and regulatory requirements for reconstruction contribute to market growth. The project types within this sector span various domains, including manufacturing, transport, renewable energy infrastructure, and housing redevelopment. Construction activity remains robust, underpinned by these factors, and is expected to continue its upward trajectory.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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