Construction in South Korea - Key Trends and Opportunities to 2025 (H2 2021)

Published: December 8, 2021 |

GlobalData | 50 Pages | Delivery time: 1-2 business days

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The South Korean construction industry is expected to contract by 1.4% this year, following a 1.4% decline in 2020. This compares to an earlier projection of a 0.5% growth. The downward revision is primarily the result of the increase in Coronavirus (COVID-19) infection rates, a decline in construction output in the first three quarters of 2021, and the disruption to building activity. According to the Korean Statistical Information Service (KOSIS), the construction industry's value add declined by 0.9% year on year (YoY) in real terms in the third quarter of 2021, following a decline of 3.4% in the second quarter and growth of 3.2% in the first. The industry is expected to recover in 2022, growing by 4.1% in real terms, supported by the significant expenditure outlined in the proposed 2022 Budget, and the implementation of planned energy projects. Downside risks to the outlook include the uncertain impact that the Omicron variant will have on the South Korean and the global economy. No cases of the new variant have yet been confirmed in South Korea, but its economy's reliance on export-driven growth will expose it to downturns in global economic activity.

In August 2021, the government announced an investment of KRW216.7 trillion (US$197 billion) in health, welfare and employment, KRW83.2 trillion (US$75.6 billion) in education, KRW30.4 trillion (US$27.6 billion) in industry, small and medium-sized enterprises (SME) and energy, KRW29.8 trillion (US$27.1 billion) in research and development, KRW27.5 trillion (US$25 billion) in social overhead capital (SOC), KRW11.9 trillion (US$10.8 billion) in environment and KRW8.8 trillion (US$8 billion) in culture, sports and tourism in its proposed budget for 2022. In July 2020, the government announced a plan to invest KRW160 trillion (US$135.7 billion) in the 'Korean New Deal' programme between 2020 and 2025, including investments in renewable energy, electric vehicles, 5G, big data and artificial intelligence. Fiscal investment on the Korean New Deal was expanded in July of this year, to reach KRW220 trillion (US$198.6 billion).

Over the remainder of the forecast period, the industry is expected to record an annual average growth of 4% between 2021 and 2024. In February 2021, the government announced a plan to build 830,000 houses across the country over the next four years, with 323,000 new houses being built in Seoul and 293,000 in nearby Gyeonggi Province and Incheon. The government's goal of becoming a global hub for vaccine production and distribution is also expected to drive growth during the forecast period.

GlobalData's Construction in South Korea - Key Trends and Opportunities to 2025 (H2 2021) 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 (2016-2020) and forecast (2021-2025) valuations of the construction industry in Pakistan, 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.

Product Code: GDCN0804MR

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
3.5 Risk Profile

4 Construction Outlook

4.1 All Construction
Outlook
Latest news and developments
Construction Projects Momentum Index
4.2 Commercial Construction
Outlook
Project analytics
Latest news and developments
4.3 Industrial Construction
Outlook
Project analytics
Latest news and developments
4.4 Infrastructure Construction
Outlook
Project analytics
Latest news and developments
4.5 Energy and Utilities Construction
Outlook
Project analytics
Latest news and developments
4.6 Institutional Construction
Outlook
Project analytics
Latest news and developments
4.7 Residential Construction
Outlook
Project analytics
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
7.3 CRI Methodology
7.4 GlobalData Construction
Contact Us

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), 2016-2025
Table 4: South Korea, Top Commercial Construction Projects by Value
Table 5: South Korea, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: South Korea, Top Industrial Construction Projects by Value
Table 7: South Korea, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: South Korea, Top Infrastructure Construction Projects by Value
Table 9: South Korea, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: South Korea, Top Energy and Utilities Construction Projects by Value
Table 11: South Korea, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: South Korea, Top Institutional Construction Projects by Value
Table 13: South Korea, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: South Korea, Top Residential 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 Billion)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: North-East Asia, Construction Output (Real % Change), 2020 and 2021
Figure 2: South Korea, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: South Korea, COVID-19 Confirmed Cases
Figure 4: South Korea, Risk Summary
Figure 5: South Korea, Risk Regional Comparison
Figure 6: South Korea, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: South Korea, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: South Korea, Construction Value Add (KRW Trillion, 2015 Chained Prices, Unadjusted)
Figure 9: South Korea, Construction Production Index (2015=100)
Figure 11: South Korea, Total Value of Construction Orders Received, % Change Y-o-Y
Figure 12: South Korea, Total Number of Building Construction Permits
Figure 10: South Korea, Total Value of Construction Completed (KRW Trillion, Constant Prices, % Change YoY)
Figure 13: South Korea, Construction Projects Momentum Index
Figure 14: North-East Asia, Construction Projects Momentum Index
Figure 15: South Korea, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 16: South Korea, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 17: South Korea, Commercial Construction Permits (Total Number)
Figure 18: South Korea, Visitor Arrivals (In Thousands)
Figure 19: South Korea, Retail Sales - Value and Volume Index, (2015=100)
Figure 20: South Korea, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 21: South Korea, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 22: South Korea, Industrial Construction Permits (Total Number)
Figure 23: South Korea, Manufacturing Value Add (KRW Trillion, 2015 Chained Prices, Unadjusted)
Figure 24: South Korea, Industrial Production Index (2015=100)
Figure 25: South Korea, Total Value of Construction Contracts Received for Industrial Plants, (KRW Trillion)
Figure 26: South Korea, Total Exports (in US$ Billion)
Figure 27: South Korea, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 28: South Korea, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 29: South Korea, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: South Korea, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: South Korea, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 32: South Korea, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 33: South Korea, Construction Permits for Educational and Social Use (Total Number)
Figure 34: South Korea, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 35: South Korea, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 36: South Korea, Residential Construction Permits (Total Number)
Figure 37: South Korea, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 38: South Korea, Headquarters of Key Consultants (% of Total Project Pipeline)