Report
South Korea Construction 2025-2029
South Korea Construction Market Overview (2025–2029)
The construction market in South Korea is projected to grow by USD 61.8 billion, with a CAGR of 5.6% from 2024 to 2029. This growth is fueled by increasing demand for modular housing and heightened public infrastructure investments. Urban expansion and government initiatives are key contributors to this market momentum.
However, the sector faces several challenges. A significant shortage of skilled labor is resulting in project delays and cost escalations. Additionally, regulatory constraints and supply chain disruptions are affecting the industry’s potential. To address these hurdles, construction firms must adopt innovative workforce solutions and strengthen supply chain strategies to remain competitive.
Market Outlook and Emerging Trends
South Korea’s construction market is evolving through trends such as offsite construction, predictive maintenance, and sensor technology. The adoption of sustainable materials like green concrete and recycled resources aligns with urban development goals and green infrastructure policies.
Smart city development and the integration of IoT are transforming supply chain management and risk mitigation in the construction process. Public-private partnerships are accelerating large-scale projects like high-rises and prefabricated buildings, supported by streamlined construction financing. Compliance with legal standards and robust insurance practices are essential to ensuring safety and minimizing risks.
Smart construction, modular solutions, and infrastructure investments continue to shape industry dynamics. Data analytics and innovation are enhancing logistics and overall project efficiency, while dispute resolution increasingly depends on stakeholder collaboration and clear communication.
Market Drivers
A major driver is the growing preference for modular housing, offering flexible, cost-effective, and efficient construction solutions. Prefabricated homes are built offsite and assembled onsite, gaining popularity due to high rents and building costs. Timber-framed modular homes are particularly common. Regulatory standards ensure structural integrity and safety, making modular housing an attractive alternative to traditional methods.
Market Trends
Government investment in public infrastructure—especially transportation, utilities, and education—is a significant growth catalyst. In 2024, infrastructure spending rose to USD 51.8 billion, highlighting the country’s commitment to development. Innovations in automation, AI, and BIM, along with the push for renewable energy and LEED-certified projects, are transforming the landscape. South Korean EPC firms are actively involved in domestic and international large-scale developments.
Market Challenges
The sector is heavily impacted by a labor shortage, particularly in industrial construction, civil engineering, and green building. Aging workers and limited availability of skilled professionals have led to operational constraints. While automation and construction technology offer some relief, regulatory updates are necessary to fully integrate these advancements. The push for sustainable construction is also reshaping workforce requirements.
Key Companies
To strengthen market presence, companies are pursuing strategic alliances, M&A, geographic expansion, and product innovation. Key players include:
-
Bumwood Co. Ltd.
-
Daewoo E&C
-
DL Group
-
DPR Construction
-
GS E&C Corp.
-
Gyeyang Co. Ltd.
-
Hanwha Corp.
-
HDC Hyundai Development Co.
-
HL D&I Halla
-
LOTTE Engineering and Construction Co. Ltd.
-
MUNYOUNG Corp.
-
Namkwang Construction Co. Ltd.
-
POSCO Holdings Inc.
-
Samsung Electronics Co. Ltd.
-
SGC eTEC E&C
-
SK ecoplant Co. Ltd.
Table of Content
1 Executive Summary
1.1 Market overview
- Executive Summary - Chart on Market Overview
- Executive Summary - Data Table on Market Overview
- Executive Summary - Chart on Country Market Characteristics
- Executive Summary - Chart on Market Segmentation by Type
- Executive Summary - Chart on Market Segmentation by End-user
- Executive Summary - Chart on Company Market Positioning
2 Technavio Analysis
2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
2.2 Criticality of inputs and Factors of differentiation
- Overview on criticality of inputs and factors of differentiation
2.3 Factors of disruption
- Overview on factors of disruption
2.4 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
3 Market Landscape
3.1 Market ecosystem
- Parent Market
- Data Table on - Parent Market
3.2 Market characteristics
- Market characteristics analysis
3.3 Value chain analysis
- Value chain analysis
4 Market Sizing
4.1 Market definition
- Offerings of companies included in the market definition
4.2 Market segment analysis
- Market segments
4.3 Market size 2024
4.4 Market outlook: Forecast for 2024-2029
- Chart on South Korea - Market size and forecast 2024-2029 ($ billion)
- Data Table on South Korea - Market size and forecast 2024-2029 ($ billion)
- Chart on South Korea: Year-over-year growth 2024-2029 (%)
- Data Table on South Korea: Year-over-year growth 2024-2029 (%)
5 Historic Market Size
5.1 Construction Market in South Korea 2019 - 2023
- Historic Market Size - Data Table on Construction Market in South Korea 2019 - 2023 ($ billion)
5.2 Type segment analysis 2019 - 2023
- Historic Market Size - Type Segment 2019 - 2023 ($ billion)
5.3 End-user segment analysis 2019 - 2023
- Historic Market Size - End-user Segment 2019 - 2023 ($ billion)
6 Qualitative Analysis
6.1 Impact of AI on construction market in South Korea
7 Five Forces Analysis
7.1 Five forces summary
- Five forces analysis - Comparison between 2024 and 2029
7.2 Bargaining power of buyers
- Bargaining power of buyers - Impact of key factors 2024 and 2029
7.3 Bargaining power of suppliers
- Bargaining power of suppliers - Impact of key factors in 2024 and 2029
7.4 Threat of new entrants
- Threat of new entrants - Impact of key factors in 2024 and 2029
7.5 Threat of substitutes
- Threat of substitutes - Impact of key factors in 2024 and 2029
7.6 Threat of rivalry
- Threat of rivalry - Impact of key factors in 2024 and 2029
7.7 Market condition
- Chart on Market condition - Five forces 2024 and 2029
8 Market Segmentation by Type
8.1 Market segments
- Chart on Type - Market share 2024-2029 (%)
- Data Table on Type - Market share 2024-2029 (%)
8.2 Comparison by Type
- Chart on Comparison by Type
- Data Table on Comparison by Type
8.3 Private - Market size and forecast 2024-2029
- Chart on Private - Market size and forecast 2024-2029 ($ billion)
- Data Table on Private - Market size and forecast 2024-2029 ($ billion)
- Chart on Private - Year-over-year growth 2024-2029 (%)
- Data Table on Private - Year-over-year growth 2024-2029 (%)
8.4 Public - Market size and forecast 2024-2029
- Chart on Public - Market size and forecast 2024-2029 ($ billion)
- Data Table on Public - Market size and forecast 2024-2029 ($ billion)
- Chart on Public - Year-over-year growth 2024-2029 (%)
- Data Table on Public - Year-over-year growth 2024-2029 (%)
8.5 Market opportunity by Type
- Market opportunity by Type ($ billion)
- Data Table on Market opportunity by Type ($ billion)
9 Market Segmentation by End-user
9.1 Market segments
- Chart on End-user - Market share 2024-2029 (%)
- Data Table on End-user - Market share 2024-2029 (%)
9.2 Comparison by End-user
- Chart on Comparison by End-user
- Data Table on Comparison by End-user
9.3 Residential - Market size and forecast 2024-2029
- Chart on Residential - Market size and forecast 2024-2029 ($ billion)
- Data Table on Residential - Market size and forecast 2024-2029 ($ billion)
- Chart on Residential - Year-over-year growth 2024-2029 (%)
- Data Table on Residential - Year-over-year growth 2024-2029 (%)
9.4 Non-residential - Market size and forecast 2024-2029
- Chart on Non-residential - Market size and forecast 2024-2029 ($ billion)
- Data Table on Non-residential - Market size and forecast 2024-2029 ($ billion)
- Chart on Non-residential - Year-over-year growth 2024-2029 (%)
- Data Table on Non-residential - Year-over-year growth 2024-2029 (%)
9.5 Civil works - Market size and forecast 2024-2029
- Chart on Civil works - Market size and forecast 2024-2029 ($ billion)
- Data Table on Civil works - Market size and forecast 2024-2029 ($ billion)
- Chart on Civil works - Year-over-year growth 2024-2029 (%)
- Data Table on Civil works - Year-over-year growth 2024-2029 (%)
9.6 Market opportunity by End-user
- Market opportunity by End-user ($ billion)
- Data Table on Market opportunity by End-user ($ billion)
10 Customer Landscape
10.1 Customer landscape overview
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
11 Drivers, Challenges, and Opportunity/Restraints
11.1 Market drivers
11.2 Market challenges
11.3 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
11.4 Market opportunities/restraints
12 Competitive Landscape
12.1 Overview
12.2 Competitive Landscape
- Overview on criticality of inputs and factors of differentiation
12.3 Landscape disruption
- Overview on factors of disruption
12.4 Industry risks
- Impact of key risks on business
13 Competitive Analysis
13.1 Companies profiled
- Companies covered
13.2 Company ranking index
- Company ranking index
13.3 Market positioning of companies
- Matrix on companies position and classification
13.4 Bumwood Co. Ltd.
- Bumwood Co. Ltd. - Overview
- Bumwood Co. Ltd. - Product / Service
- Bumwood Co. Ltd. - Key offerings
- SWOT
13.5 Daewoo E and C
- Daewoo E and C - Overview
- Daewoo E and C - Product / Service
- Daewoo E and C - Key offerings
- SWOT
13.6 DL Group
- DL Group - Overview
- DL Group - Product / Service
- DL Group - Key offerings
- SWOT
13.7 DPR Construction
- DPR Construction - Overview
- DPR Construction - Product / Service
- DPR Construction - Key offerings
- SWOT
13.8 GS E and C Corp.
- GS E and C Corp. - Overview
- GS E and C Corp. - Business segments
- GS E and C Corp. - Key offerings
- GS E and C Corp. - Segment focus
- SWOT
13.9 Hanwha Corp.
- Hanwha Corp. - Overview
- Hanwha Corp. - Product / Service
- Hanwha Corp. - Key news
- Hanwha Corp. - Key offerings
- SWOT
13.10 HDC Hyundai Development Co.
- HDC Hyundai Development Co. - Overview
- HDC Hyundai Development Co. - Product / Service
- HDC Hyundai Development Co. - Key offerings
- SWOT
13.11 HL D and I Halla
- HL D and I Halla - Overview
- HL D and I Halla - Product / Service
- HL D and I Halla - Key offerings
- SWOT
13.12 LOTTE Engineering and Construction Co. Ltd.
- LOTTE Engineering and Construction Co. Ltd. - Overview
- LOTTE Engineering and Construction Co. Ltd. - Product / Service
- LOTTE Engineering and Construction Co. Ltd. - Key offerings
- SWOT
13.13 MUNYOUNG Corp.
- MUNYOUNG Corp. - Overview
- MUNYOUNG Corp. - Product / Service
- MUNYOUNG Corp. - Key offerings
- SWOT
13.14 Namkwang Construction Co. Ltd.
- Namkwang Construction Co. Ltd. - Overview
- Namkwang Construction Co. Ltd. - Product / Service
- Namkwang Construction Co. Ltd. - Key offerings
- SWOT
13.15 POSCO Holdings Inc.
- POSCO Holdings Inc. - Overview
- POSCO Holdings Inc. - Business segments
- POSCO Holdings Inc. - Key news
- POSCO Holdings Inc. - Key offerings
- POSCO Holdings Inc. - Segment focus
- SWOT
13.16 Samsung Electronics Co. Ltd.
- Samsung Electronics Co. Ltd. - Overview
- Samsung Electronics Co. Ltd. - Business segments
- Samsung Electronics Co. Ltd. - Key news
- Samsung Electronics Co. Ltd. - Key offerings
- Samsung Electronics Co. Ltd. - Segment focus
- SWOT
13.17 SGC eTEC E and C
- SGC eTEC E and C - Overview
- SGC eTEC E and C - Product / Service
- SGC eTEC E and C - Key offerings
- SWOT
13.18 SK ecoplant CO. LTD.
- SK ecoplant CO. LTD. - Overview
- SK ecoplant CO. LTD. - Product / Service
- SK ecoplant CO. LTD. - Key offerings
- SWOT
Research Methodology
All our research reports employ a mixed-methods approach, leveraging both primary and secondary research techniques to develop a comprehensive and well-informed analysis. The methodology ensures a balanced perspective by combining data-driven insights with expert opinions.
1. Secondary Research
Secondary research formed the foundation of the study, offering a contextual understanding of the market landscape, historical trends, and existing data. This phase involved gathering and analyzing information from:
- Industry reports and whitepapers (e.g., McKinsey, Deloitte, Statista)
- Academic journals and case studies
- Company reports, investor presentations, and press releases
- Government databases and regulatory publications
- Trade publications, industry blogs, and news articles
2. Primary Research
To validate and complement secondary findings, extensive primary research was conducted. This included both quantitative data collection and qualitative insights, particularly through expert consultations.
a. Expert Consultations (Qualitative Primary Research)
In-depth interviews were conducted with a wide range of industry stakeholders, including:
- Industry experts and consultants
- Senior executives and decision-makers
- Product managers and supply chain professionals
- Academic researchers and analysts
b. Surveys and Questionnaires (Quantitative Primary Research)
Structured surveys were distributed among:
- End-users/consumers
- Retailers and distributors
- Business-to-business (B2B) buyers
3. Data Validation and Triangulation
Findings from secondary and primary sources were cross-validated through data triangulation to ensure accuracy, consistency, and reliability. This process involved comparing insights from different sources and reconciling discrepancies through expert feedback.
4. Analytical Tools and Frameworks
Various analytical models were applied to interpret the collected data:
- SWOT Analysis for understanding strengths, weaknesses, opportunities, and threats
- Porter’s Five Forces to assess market competitiveness
- PESTLE Analysis to evaluate external macroeconomic influences
- Forecasting Models using historical data trends and regression analysis
Conclusion
The combination of comprehensive secondary research and robust primary data collection—enhanced by expert consultations—ensured the development of a well-rounded and in-depth analysis. This approach enables strategic decision-making backed by both empirical evidence and industry expertise.
For detailed methodology for this particular report please write to us on info@syovi.com