South Korea Construction Industry Report 2025: Output To Shrink By A Staggering 9.1%, Owing To Political Instability, Household Debt, Sluggish Housing Market, And Tariff Uncertainty - Forecast To 2029

(MENAFN- GlobeNewsWire - Nasdaq) Investment in South Korea's transport, housing, and semiconductor sectors offers growth opportunities from 2026 to 2029, despite a projected 9.1% construction shrinkage by 2025. A KRW50 trillion fund supports crucial industries, leveraging AI, batteries, and biopharma for construction industry recovery.

Dublin, Sept. 23, 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 2029 (Q3 2025)" report has been added to ResearchAndMarkets's offering.
South Korean construction industry will shrink by 9.1% in real terms in 2025, owing to political instability coupled with rising household debt, a sluggish housing market, and uncertainty over the implementation of US tariffs.

These factors have created an unfavourable business climate, resulting in cessation of projects and delays. Among the major projects, completion of the new Gadeok Island airport has been postponed beyond 2029 due to a mix of environmental, financial, and logistical hurdles. Moreover, currency fluctuations, coupled with the central bank's limited room for monetary easing due to high household debt, has substantially constrained the country's ability to stimulate growth.

Furthermore, an anticipated drop in trade activities with the US in the coming quarters, amid tariff war, is likely to impact the South Korean construction industry's output in the short term. In a setback, in May 2025, the Ministry of Economy and Finance revealed a slowdown in exports for the first time, reflecting concerns over an exacerbating global trade environment fuelled by US tariffs on steel, automobiles, and other imports.
Over the remainder of the forecast period, the South Korean construction industry is expected to register an annual average growth rate of 2.8% from 2026 to 2029, supported by investments in transport, housing, and semiconductor projects. To stabilize the country's economy, in March 2025, the government announced the creation of KRW50 trillion (34.4 billion) fund for the development of 12 industries.

Some of the major industries whose development will majorly support the construction industry are semiconductors, artificial intelligence (AI), rechargeable batteries and biopharmaceuticals industries. To support this, the Korea Development Bank will provide low-interest loans over the next five years to the businesses involved in these industries
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
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