South Korea Construction Industry Report 2024-2028: Increased Bankruptcy Among Construction Firms, Government Support for Key Sectors, Focus on Renewable Energy Initiatives - ResearchAndMarkets.com

The "South Korea Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in South Korea is expected to grow by 3.5% to reach KRW 119.24 trillion in 2024. Despite near-term challenges in certain construction sectors, South Korea's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 4.4% is projected during 2024-2028, with the country's construction output expected to reach KRW 135.72 trillion by 2028, indicating substantial growth potential.

This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in South Korea, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

The construction industry in South Korea is facing a challenging period characterized by projected contractions and rising costs. However, significant opportunities exist, particularly in government support for key sectors, renewable energy initiatives, and infrastructure development. Senior executives should leverage these opportunities while adapting to the evolving market dynamics. By embracing innovative practices and aligning strategies with government initiatives, stakeholders can successfully navigate South Korea's construction landscape complexities and contribute to the country's long-term growth.

The construction industry in South Korea is currently navigating a complex landscape marked by economic fluctuations, regulatory changes, and evolving market demands.

• Increased Bankruptcy Among Construction Firms: The challenging economic environment has led to a significant increase in bankruptcies, with 21 construction firms declaring bankruptcy in 2023, a 50% increase from the previous year. This trend highlights the financial pressures facing the industry.
• Government Support for Key Sectors: In response to the economic challenges, the South Korean government has unveiled a support package totalling KRW 26 trillion (USD 19.8 billion) to foster the semiconductor industry's development. This investment is expected to stimulate construction activity in related sectors.
• Focus on Renewable Energy Initiatives: The government is committed to enhancing the proportion of renewable energy in the energy mix from 12.2% in March 2024 to 21.6% by 2030. Plans to develop 143 GW of offshore wind capacity by 2030 will require substantial investments in construction and infrastructure.

Residential Construction: Addressing Housing Needs

• Declining Housing Permits: The residential construction sector faces challenges, with a notable decline in building permits issued. The total number of housing construction permits issued in South Korea has decreased significantly, impacting the supply of new housing units.
• Government Initiatives for Affordable Housing: Despite the downturn, the government continues to promote affordable housing initiatives to address the country's housing deficit. Programs to increase homeownership and provide low-cost housing options are crucial for meeting the growing demand.

Commercial Construction: Adapting to Market Dynamics

• Investment in Commercial Real Estate: The commercial construction sector is expected to see a modest recovery, driven by investments in office buildings, retail spaces, and mixed-use developments. The recovery of consumer spending and the growth of e-commerce influence the demand for commercial properties..
• Focus on Smart and Sustainable Buildings: Developers are increasingly adopting smart building technologies that enhance energy efficiency and tenant experience. This trend is driven by regulatory requirements and growing consumer demand for environmentally friendly commercial spaces.

Institutional Construction: Enhancing Public Services

• Increased Spending on Education and Healthcare: The institutional construction sector benefits from heightened government spending on educational and healthcare facilities. The government's commitment to improving public services is crucial for addressing the needs of a growing population.
• Disaster Resilience in Institutional Projects: Given South Korea's vulnerability to natural disasters, institutional projects increasingly incorporate resilience measures. New schools and hospitals are being designed to withstand environmental challenges, ensuring continuity of services.

Industrial Construction: Supporting Economic Growth

• Expansion of Manufacturing Facilities: The industrial construction sector is experiencing growth driven by increased demand for manufacturing and logistics facilities. The government's focus on enhancing local production capabilities and reducing reliance on imports is fuelling investments in this area.
• Investment in Semiconductor Manufacturing: The government's support for the semiconductor industry is expected to drive significant investments in industrial construction. This includes the development of manufacturing plants and related infrastructure to support the growing demand for semiconductor products.

Infrastructure Construction: Building for the Future

• Major Infrastructure Projects Underway: Infrastructure construction remains a cornerstone of South Korea's development strategy. Major projects such as the KTX high-speed rail expansion and improvements to urban transport systems are progressing. These projects are crucial for improving connectivity and supporting economic activities.
• Focus on Transportation Networks: The government is prioritizing the development of transportation infrastructure, including roads, railways, and airports. Investments in transportation networks are essential for facilitating economic growth and regional integration.

Scope

Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 - 2028 in South Korea.

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

South Korea Economic Indicators

South Korea Top Cities Construction Data

South Korea Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

South Korea Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

South Korea Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

South Korea Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

South Korea Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

South Korea Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

South Korea Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

South Korea Infrastructure Construction Sectors: 10-year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

South Korea Green Infrastructure Construction: 10-year market size & forecast in value terms

South Korea Construction Cost Structure Analysis: 10-year market size & forecast in value terms

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

For more information about this report visit https://www.researchandmarkets.com/r/76p744

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