Dublin, Jan. 15, 2025 (GLOBE NEWSWIRE) -- The "South Korea Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2028 (Q3 2024)" report has been added to ResearchAndMarkets.com's offering.
The South Korean construction industry is expected to contract by 1.9% in real terms in 2024 and 1.2% in 2025, owing to a decline in Foreign Direct Investment (FDI), rising construction material prices, high interest, and inflation rate, and a decline in the number of building permits, coupled with ongoing weakness in the residential construction sector and rising fiscal deficit.
According to the Korean Statistical Information Service (KOSIS), the total number of permits issued for construction declined by 11.4% year-on-year (YoY) in the first seven months of 2024, while the total gross floor area of construction permits issued fell by 16.6% YoY over the same period. Residential building permits alone declined by 17.8% YoY in January-July 2024, following Y-o-Y declines of 8.9% in commercial building permits and 3.7% in industrial buildings permit issued over the same period. According to the Ministry of Trade, Industry and Energy (MOTIE), FDI pledges fell by 13.1% YoY in the first half of 2024, reaching KRW20.1 trillion ($15.3 billion).
Over the remainder of the forecast period, from 2026 to 2028, the construction industry in South Korea is expected to record an annual average growth of 2.7%, supported by an increase in investment in the semiconductor industry, transport infrastructure, and renewable energy projects, coupled with the government's plan to install 14.3GW of offshore wind energy by 2030. In line with this, in August 2024, the government reported that it will launch tenders for the 7-8GW of offshore wind power plant by 2026.
Furthermore, in July 2024, the Haewoori Offshore Wind Project was approved by the government, which includes the construction of a 1.5GW floating wind farm in Ulsan by 2028. Growth over the forecast period will also be supported by the government's goal of attaining a 10% global market share in system semiconductors by 2030. In line with this, in July 2024, domestic chip supplier SK Hynix announced an investment of KRW9.4 trillion ($7.2 billion) for the construction of four semiconductor manufacturing plants in an area of 4.2 million m2 in Yongin by 2027.
Scope
- Historical (2019-2023) and forecast (2024-2028) 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 the analyst'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 the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
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 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
For more information about this report visit https://www.researchandmarkets.com/r/ig00dc
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