South Korea Construction Industry Report 2025 | Output to Shrink by 6.2%, Due to US Tariff Impact, High Costs, Political Uncertainty, Rising Household Debt - Forecast to 2029 - ResearchAndMarkets.com

The "South Korea Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

The analyst expects the South Korean construction industry to shrink by 6.2% in real terms in 2025, owing to high construction costs, rising household debt, a sluggish housing market, and ongoing political uncertainty in the country, coupled with uncertainty over the implementation of US tariffs.

These factors have created an unfavorable business climate, resulting in project cancellations and delays. In January 2025, the South Korean government halted construction on a major hydrogen fuel cell power project, valued at KRW555.9 billion ($414 million), due to financial difficulties. The project, which was already underway, faced escalating costs and funding challenges that ultimately led to its cancellation. Uncertainty over the US' implementation of a 25% tariff on South Korean goods is likely to pose a downside risk to the industry's outlook in the short term.

Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.6% from 2026 to 2029, supported by investments in transport infrastructure, along with the government's target of achieving carbon neutrality by 2050. The government aims to increase the share of renewable energy in the total electricity mix from 9.2% in March 2024 to 21.6% by 2030 and 32.9% by 2038. The country intends to reach this goal by constructing 30GW of solar power capacity and 14.3GW of offshore wind power capacity by 2030.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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 our 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 business strategies 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/hr8o0x

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