The South Korea Construction Market Report is Segmented by Sector (Residential, Commercial, and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site and More), by Investment Source (Public and Private) and by Key Cities (Seoul and Rest of South Korea). The Market Forecasts are Provided in Terms of Value (USD).

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South Korea Construction Market Size 2025-2029

The South Korea construction market size is forecast to increase by USD 61.6 billion, at a CAGR of 5.4% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing demand for modular houses. This trend is being fueled by the government's efforts to address housing shortages and improve urban living conditions. In addition, a surge in public infrastructure spending by the government is creating new opportunities for construction companies. The increasing adoption of technology to enhance efficiency and productivity, such as Building Information Modeling (BIM) and modular construction is also a key trend. However, the construction industry faces challenges, including a shortage of skilled labor, which can lead to project delays and increased costs. To mitigate these challenges, industry players are exploring innovative solutions such as automation and offsite construction techniques. Also, the sector faces a substantial challenge: a shortage of skilled labor. With an aging workforce and a lack of new entrants, the construction industry must find innovative solutions to meet the growing demand for projects.
Companies that can effectively address this labor shortage and leverage the government's infrastructure spending will be well-positioned to capitalize on the market's potential. Adapting to the trend towards modular housing and implementing efficient labor management strategies are essential for success in this dynamic market.

What will be the size of the South Korea Construction Market during the forecast period?

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In South Korea's construction market, architectural services and engineering services are in high demand for infrastructure projects, including energy and water infrastructure, transportation, and public-private partnerships (PPPs). The industry also prioritizes innovation in construction through the adoption of technology such as construction software, data analytics, and digital twin for project scheduling, quality control, and risk management. Labor unions play a significant role in the workforce development of the construction industry, ensuring adherence to sustainability standards and safety training. Meanwhile, precast concrete, roofing systems, and structural steel are commonly used in building envelope and earthmoving equipment for land use planning and paving projects.
Energy efficiency and waste reduction are key concerns in the sector, with a focus on AI and smart construction for fire protection, electrical systems, HVAC, and plumbing. Infrastructure projects require extensive environmental impact assessments and compliance with regulatory frameworks, driving the need for construction finance models and project permits. Construction companies invest in infrastructure projects, leveraging the latest technology and engineering services to ensure efficiency and safety. Innovation in construction continues to drive growth, with a focus on AI, structural steel, and concrete pumping for large-scale projects. Construction drawing and design processes are streamlined through digital tools, while project scheduling and risk management are optimized through data analytics.
In the realm of sustainability, the industry prioritizes the use of precast concrete, energy-efficient systems, and waste reduction strategies. Earthmoving equipment and paving technologies are employed for land use planning and infrastructure development, while fire protection and risk management systems ensure safety and compliance with regulations. Quality control is paramount in the construction industry, with a focus on innovation and technology to ensure adherence to sustainability standards and regulatory frameworks. Construction finance models and permitting processes are streamlined through digital tools and AI, enabling efficient project management and timely completion. In conclusion, South Korea's construction market is dynamic and innovative, driven by a focus on sustainability, technology, and efficiency.
Architectural services, engineering services, and infrastructure projects are at the forefront of growth, with a strong emphasis on quality control, risk management, and workforce development. The industry continues to evolve, with a focus on AI, digital tools, and innovation to meet the demands of a rapidly changing market.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Private
  Public


End-user

  Residential
  Non-residential
  Civil works


Geography

  APAC

In 2024, the South Korea Construction Market reached $325.91 billion, and is projected to surge to $389.89 billion by 2030 at a CAGR of 2.6% from 2024 to 2030

The construction market in South Korea was estimated to be at *** billion U.S. dollars in 2023. Until 2022, the South Korean construction had grown consecutively since 2018.

The South Korea construction market size is estimated to expand at a CAGR of 2.60% in the forecast period of 2025-2034. The construction market in South Korea is driven by increasing government investments in infrastructure development and growing smart city projects.

In 2024, the gross domestic product (GDP) contributed by the construction sector in South Korea was approximately *** trillion South Korean won. The GDP from this sector showed overall growth until 2017 and started to decrease from the year after. Construction industry in South Korea In 2023, approximately ******* construction permits were issued in South Korea. In 2023, the total construction costs amounted to over *** trillion South Korean won, the highest they have been in the last decade. According to the government construction capability evaluation, South Korea’s leading construction company was Samsung C&T (Construction and Trading). The government’s annual construction capability evaluation measures a company’s performance based on construction contracts, business management, technical capabilities, and brand credibility. Construction overseas South Korean construction companies also operate abroad, constructing industrial plants, public works, electric power plants, telecommunications facilities, and more. Overseas construction orders totaled over ** billion U.S. dollars in 2024. However, this figure remained below the value of orders recorded a decade earlier.

South Korea Data Center Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

South Korea Construction Market size was valued at USD 98.02 Billion in 2024 and is projected to reach around USD 141.40 Billion by 2032, growing at a CAGR of 4.4% from 2024 to 2032. The South Korea construction market is driven by strong government infrastructure investment, particularly in smart cities, transportation, and renewable energy projects. Continued urbanization and housing demand also fuel residential and commercial construction growth. Additionally, technological advancements like modular construction and Building Information Modeling (BIM) are enhancing efficiency and reducing costs. Private sector investments and favorable policies further support market expansion.

In 2023, around *** million people were employed within the South Korean construction industry, an increase from the previous year. The number of those employed in the construction industry has recovered slightly from a decline in 2021.

The South Korean construction market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) exceeding 4.05% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, significant government investments in infrastructure projects, particularly within the transportation sector (high-speed rail, road expansions, and port upgrades), are stimulating considerable demand. Secondly, a growing urbanization trend and increasing population density are driving the need for new residential and commercial buildings in major metropolitan areas such as Seoul, Busan, and Daegu. Further contributing to growth is the ongoing development of renewable energy infrastructure, aligning with the country's commitment to sustainable development goals. While the market faces potential headwinds like fluctuations in material costs and skilled labor shortages, the overall positive economic outlook and consistent government support are expected to mitigate these challenges. The market is segmented by sector, encompassing residential, commercial, industrial, infrastructure (transportation), and energy and utilities construction. While residential construction currently holds a substantial share, the infrastructure sector is anticipated to experience the most significant growth in the forecast period due to ongoing large-scale projects. Key players such as Samsung C&T, Hyundai E&C, and GS E&C are leveraging their expertise and established market presence to capitalize on these opportunities. However, the competitive landscape is also characterized by intense competition, necessitating strategic partnerships, technological advancements (such as Building Information Modeling – BIM), and efficient project management to maintain a competitive edge. The historical period (2019-2024) likely witnessed varying growth rates influenced by global economic factors and domestic policy changes. Future growth will depend on successful execution of planned infrastructure projects and continued investment in sustainable construction practices. Recent developments include: September 2022: GS Engineering and Construction partnered with German chemical giant BASF to jointly modularize a carbon capture solution, which would work as the framework for their future projects. The latest deal would focus on co-developing and translating BASF's OASE blue technology - an optimized large-scale post-combustion capture technology -- into a modular carbon capture solution. According to GS EC., OASE blue enables its user to capture carbon selectively through a liquid solution. BASF will provide data on carbon capture technology, while GS EC will standardize related designs and construction through its experience in handling large-scale petrochemical plant projects., March 2022: GS E&C signed a memorandum of understanding (MOU) on the modularization of biodiesel production facilities with Haldor Topsoe, a Danish company specializing in carbon reduction technologies. GS E&C plans to standardize and modularize Haldor Topsoe's HydroFlex biodiesel production technology. Haldor Topsoe will provide information on its biodiesel production technology. At the same time, GS E&C will standardize the design and construction of the plant based on its modularization expertise accumulated through large-scale refinery and chemical plant projects.. Notable trends are: Increase in Construction Permits Driving the Market.

In 2022, the total value added of construction enterprises with a market capitalization between 100 and *** million South Korean won in South Korea amounted to more than **** trillion South Korean won. That year, the total value added by the South Korean construction industry stood at around *** trillion South Korean won.

The South Korea Transportation Infrastructure Market Report and It is Segmented by Type (Roadways, Railways, Airports and Ports and Inland Waterways). The Report Offers Market Size and Forecasts for Transportation Infrastructure Construction Market in Value (USD Billion) for all Above Segments.

In 2023, the South Korean construction industry employed a total of around *** million workers. The largest share of employees worked in the general construction sector, at around ******* workers. Within specialized construction activities, approximately ******* people in construction worked in site preparation and foundation work.

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

What will be the Size of the Construction Market during the forecast period?

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In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry segmented?

The construction industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

The South Korean data center construction market exhibits robust growth, with a market size of XX million (Value Unit) and a Compound Annual Growth Rate (CAGR) of 15.83% during the forecast period (2025-2033). This expansion is fueled by several key drivers. The surge in digital transformation across various sectors, including banking, financial services, insurance (BFSI), IT and telecommunications, and government, necessitates increased data storage and processing capabilities. The increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT) further fuels demand for advanced data center infrastructure. Furthermore, government initiatives promoting digitalization and technological advancements contribute significantly to market growth. Key trends shaping the market include the rising adoption of sustainable and energy-efficient data center designs, focusing on reduced carbon footprints and optimized power consumption. The integration of advanced technologies like AI and machine learning for improved data center management and automation is also gaining traction. However, restraints include high initial investment costs associated with constructing and maintaining data centers, particularly for higher-tier facilities, and the potential for land scarcity and regulatory hurdles in securing suitable locations for large-scale data center projects. The market is segmented by infrastructure (electrical and mechanical), tier type (Tier 1-4), and end-user sectors. Major players like SAS Institute Inc., Fortis Construction, IBM Corporation, and Schneider Electric SE are actively shaping the market landscape through innovative solutions and strategic partnerships, competing across different segments offering specialized services from general construction to advanced power distribution and cooling systems. The South Korean data center market's segmentation reveals a diverse landscape. Within infrastructure, the demand for robust power distribution solutions (PDUs, transfer switches, switchgear), reliable power backup (UPS, generators), and efficient cooling systems (immersion, direct-to-chip, rear-door heat exchangers) is driving growth. The demand for Tier 3 and Tier 4 data centers, offering higher levels of redundancy and reliability, is increasing rapidly, driven by the needs of large enterprises and critical infrastructure providers. Across end-user segments, BFSI institutions remain significant investors, followed by the IT and telecommunications sector, and a growing government and defense segment. The "Other End Users" category shows potential for future growth, driven by increasing digitalization in various industries. Regional variations within South Korea may exist depending on infrastructure availability, government support, and proximity to key consumer bases. The historical period (2019-2024) data provides a baseline for understanding past growth patterns, which when coupled with the current market dynamics, provides a strong foundation for projecting future market trends and opportunities throughout the forecast period (2025-2033). The competitive landscape is characterized by both international giants and local players, leading to intense competition and continuous innovation within the South Korean data center construction market. Recent developments include: November 2022: Naver Corp., has started the construction of its second data center, Gak Sejong Center, which is built in Sejong City. It is expected to be completed by the end of 2023., January 2022: Equinix Inc. is aiming to open two hyperscale data centers, SL2x and SL3x, in Seoul which are scheduled to open by 2023 and 2024 respectively. Both of the data centers are expected to provide an IT load capacity of 24 MW each.. Key drivers for this market are: Increased Migration to Cloud-based Business Operations, Rise of Green Data Centers; Government Support in the Form of Tax Incentives for Development of Data Centers. Potential restraints include: Higher Initial Investments and Low Availability of Resources. Notable trends are: Growing Preference for Tier 4 Standard Data Centers.

The South Korean infrastructure market, valued at approximately $XX million in 2025, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 3.50% through 2033. This expansion is fueled by several key drivers. Government initiatives focused on modernization and upgrading aging infrastructure, particularly within transportation (railways, roadways, and airports) and social infrastructure (schools and hospitals), are significant contributors. Furthermore, increasing urbanization and a burgeoning population are placing pressure on existing infrastructure, creating a demand for new developments. The strong presence of major construction companies like GS E&C, Samsung C&T, and Hyundai Engineering & Construction, coupled with a government commitment to sustainable and technologically advanced infrastructure projects, further solidifies this positive outlook. However, potential restraints include fluctuating material costs, labor shortages, and global economic uncertainties. The market is segmented into Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure (power generation, telecommunications), and Manufacturing Infrastructure. Each segment is witnessing growth, but the transportation sector is expected to lead, driven by high-speed rail expansion and airport improvements. The forecast period (2025-2033) suggests continued expansion, with a particular focus on smart city initiatives and the integration of advanced technologies such as IoT and AI into infrastructure projects. While challenges exist, the overall positive outlook is maintained by the government's commitment to long-term infrastructure development plans and the robust capabilities of the domestic construction sector. The continued focus on enhancing both social and economic infrastructure is likely to solidify South Korea's position as a regional leader in infrastructure development, attracting both domestic and foreign investment. The market's dynamism and future-oriented approach suggest considerable opportunities for stakeholders throughout the value chain. Recent developments include: October 2022: Keppel Infrastructure, based in Singapore, completed the USD 0.60 billion acquisition of EMK Co., South Korea's leading waste management company. The sale price of approximately 20 times earnings before interest, taxes, depreciation, and amortization (EBITDA) was viewed as excessive by industry sources, despite the waste management company's growth potential, given the recent deterioration in market sentiment due to rising interest rates and other bearish factors., September 2022: Hyundai Motor Group (HMG/the Group) will expand its strategic partnership with KT Corporation (KT), Korea's leading telecommunications company, to lead the future mobility market. Hyundai Motor Group announced today that it would push for comprehensive and extensive collaboration in next-generation communication infrastructure and ICT, including joint research with KT on 6G autonomous driving technology and an Advanced Air Mobility (AAM) communication network based on satellite communication.. Key drivers for this market are: 4., South Korea's status as a global business hub can attract expatriates and foreign executives seeking high-end accommodation options4.; Incorporating advanced technology and smart home features making luxury properties more appealing to tech-savvy buyers. Potential restraints include: 4., Lack of foreign investment4.; Stricter government regulation inhibiting the growth. Notable trends are: Investment on transportation infrastructure driving the market.

Technological advancements in the South Korea Data Center Construction industry are shaping the future market landscape. The report evaluates innovation-driven growth and how emerging technologies are transforming industry practices, offering a comprehensive outlook on future opportunities and market potential.

South Korea construction equipment market size reached USD 4,764.4 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 6,840.1 Million by 2033, exhibiting a growth rate (CAGR) of 4.1% during 2025-2033. Rapid urbanization, favorable government infrastructure initiatives, a thriving manufacturing sector, real estate development, the adoption of eco-friendly practices, increasing smart city projects, and international collaborations represent some of the key factors driving the market.

Investments in the construction industry in South Korea is forecast to have a growth rate of 2.3 percent in 2027. More investment in large-scale social overhead capital projects are expected to have a positive impact on the South Korean construction industry in coming years.

The South Korean infrastructure market, valued at $59.76 billion in 2025, is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 3.24% from 2025 to 2033. This growth is driven by several key factors. Government initiatives focused on upgrading aging infrastructure, particularly in transportation (railways, roadways, and airports) and social infrastructure (schools and hospitals), are significant contributors. Furthermore, increasing urbanization and a rising demand for improved connectivity are fueling investment in both public and private infrastructure projects. The expansion of the country's manufacturing sector, especially in areas like metal and ore production and petroleum refining, necessitates substantial investment in supporting industrial infrastructure. However, potential restraints include fluctuating material costs, labor shortages, and potential economic downturns that could impact project timelines and budgets. The market is segmented by type, with transportation infrastructure currently holding a substantial share, followed by social and extraction infrastructure. Key players in the market include established construction conglomerates such as Samsung C&T, Hyundai E&C, and Daewoo E&C, reflecting the considerable level of competition. The long-term outlook remains positive, fueled by ongoing government investments and the country's commitment to modernizing its infrastructure network. The projected growth trajectory suggests a market size exceeding $75 billion by 2033, reflecting both organic growth and planned infrastructure projects. The market's segmentation reveals opportunities across various infrastructure types. While transportation infrastructure currently dominates, significant growth is anticipated in other segments such as the extraction and manufacturing sectors, driven by technological advancements and evolving industrial needs. Competition among leading construction firms will likely intensify as they vie for substantial government and private contracts. Understanding the interplay between government policy, technological progress, and economic fluctuations is crucial for successfully navigating this dynamic market landscape. Recent developments include: January 2024: South Korea's overseas construction orders surpassed USD 30 billion in 2023, marking the fourth consecutive year of this achievement. Orders from the US primarily fueled the surge, as it aimed to attract electric vehicle and battery manufacturers to its shores. Additionally, there was a resurgence in plant demand from the Middle East. As per the data released by Korea's Ministry of Land, Infrastructure, and Transport and the International Constructors Association of Korea, 321 Korean construction and engineering firms secured orders worth USD 33.3 billion from 95 countries in 2023.July 2023: Samsung C&T Engineering & Construction Group, in collaboration with a local construction firm, was awarded a lucrative contract for the Fubon Aozihdi Development Project in Kaohsiung. Fubon Life, a prominent insurance company headquartered in Taipei, has commissioned this ambitious venture. Valued at a staggering USD 790 million, Samsung C&T's share in the project amounts to approximately USD 592 million. The development, set to be completed in the future, will feature a 48-story (240 m) office tower, a 23-story hotel, and a connecting podium on the lower floors.. Key drivers for this market are: Country's strong focus on innovation and technology, Promoting economic growth driving the market. Potential restraints include: Country's strong focus on innovation and technology, Promoting economic growth driving the market. Notable trends are: Investment on Transportation Infrastructure Driving the Market.