South Korea Construction Industry Report 2023: Output Expected to have Risen by 4.2% in 2023 with a Contraction of 3.2% in Real Terms in 2024 and 0.7% in 2025 Now Projected - Forecasts to 2027 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "South Korea Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027" report has been added to ResearchAndMarkets.com's offering.

While construction output is expected to have risen by 4.2% this year, the analysis suggests the construction industry in South Korea to contract by 3.2% in real terms in 2024 and by 0.7% in 2025, owing to headwinds such high interest rates, elevated construction costs, and weakness in the real estate and housing markets.

Additionally, a sharp fall in construction permits is also likely to weigh on the industry's output in the early part of the forecast period. According to the Korean Statistical Information Service (KOSIS), the total number of construction permits issued in the country fell by 25.7% year-on-year (YoY) in the first nine months of 2023, while the total gross floor area for which construction permits were issued fell by 25.9% YoY, over the same period. Further weighing on construction industry growth, officials announced in November 2023 that progress on Saudi Aramco's KRW9.3 trillion ($7 billion) petrochemical project in South Korea had hit slowed due to labour shortages.

The industry is expected to register an average annual growth rate of 2.6% from 2026 to 2027, supported by investment in the housing, energy, industrial and tourism sectors. In September 2023, the Korea Housing and Urban Guarantee Corporation and Korea Housing-Finance Corporation announced that they will increase project finance loan guarantees, for 2023, from KRW15 trillion ($11.3 billion) to KRW25 trillion ($18.8 billion).

It will also increase the ceiling on loans from 50% to 70% of the total project cost. In another boost to the housing sector, the government aims to provide 2.7 million new homes by 2027, with one million houses planned to be constructed by 2024. Forecast-period growth in the industry will also be supported by the Ministry of Industry, Trade, and Energy's (MoITE) plan to raise the share of renewable energy in its total electricity mix from 9% in 2021 to 21.6% in 2030, and subsequently to 30.6% in 2036.

The MoITE reported in November 2023 that the UK-based offshore wind firm Corio Generation and the British multinational oil and gas company BP PLC submitted their plans to invest KRW1.5 trillion ($1.2 billion) on developing wind farms in South Korea.

Scope

• Historical (2018-2022) and forecast (2023-2027) 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 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 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/aj23vr

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.