South Korea Construction Market by Type (Renovation, and New Construction), by Construction Method (Traditional, Prefabricated/Modular, 3D-Printed, and Green/Sustainable), by Contractor Type (Large Contractor, Medium Contractor, and Small Contractor), and Sector (Real Estate, Commercial, Infrastructure, Industrial) – Industry Trends and Forecast, 2025–2030
Industry: Construction & Manufacturing | Publish Date: 09-Jun-2025 | No of Pages: 85 | No. of Tables: 118 | No. of Figures: 63 | Format: PDF | Report Code : CM2219
South Korea Construction Industry Overview
The South Korea Construction Market size was valued at USD 325.91 billion in 2024, and is projected to grow to USD 343.37 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 389.89 billion by 2030, with a CAGR of 2.6% from 2025 to 2030.
The market is experiencing significant growth driven by major large-scale projects such as the Samsung Electronics semiconductor cluster, Incheon Airport Terminal expansion, and the Seoul Yeouido International Finance Center redevelopment, all of which aim to enhance the country's global infrastructure and economic position.
The surge in infrastructure investments, particularly in energy and transport sectors, is further fueling market expansion, while government support ensures continued development.
However, the market faces challenges due to regulatory complexities, including lengthy permit processes and bureaucratic inefficiencies, which can delay projects and increase costs.
Despite these obstacles, the growing adoption of digital technologies like Building Information Modeling (BIM), along with AI and IoT integration, offers significant opportunities for improved project management, efficiency, and collaboration, driving further growth in the sector.
Large-Scale Projects Propels the South Korea Construction Market Demand
The construction industry in South Korea is witnessing remarkable growth, propelled by a surge in large-scale projects initiated in 2024 and 2025. Key initiatives driving this expansion include the Samsung Electronics Yongin Semiconductor Cluster, a USD 240 billion project launched in 2024 to build six new chip factories by 2030, enhancing South Korea’s global semiconductor dominance; the Incheon International Airport Terminal 2 Expansion, a USD 4.8 billion project advancing in 2025 to increase passenger capacity to 100 million annually by 2030; and the Seoul Yeouido International Finance Center Redevelopment, a USD 2.5 billion mixed-use project started in 2024 to create a global financial hub with skyscrapers and commercial spaces.
These substantial endeavors, supported by the Ministry of Land, Infrastructure and Transport (MOLIT), underscore the infrastructure sector’s critical role in driving South Korea’s economic advancement.
Surge in Investment in Infrastructure Activities Fuels South Korea Construction Market Growth
Increasing investments in infrastructure activities are significantly boosting the construction market in South Korea. According to Statistics Korea and MOLIT, infrastructure investment reached USD 55 billion in 2024, a 7.8% increase from 2023. The energy sector led with USD 15 billion, driven by renewable energy projects like the USD 3 billion Shin Hanul Nuclear Power Plant Units 3 and 4, under construction in 2025, and offshore wind farms targeting 14.3 GW by 2030.
The road transport sector followed with USD 13 billion, including the USD 1.2 billion Busan-Geoje Fixed Link expansion, progressing in 2024. These investments, bolstered by a 2025 budget allocating USD 28 billion for infrastructure, are expected to sustain market growth, reinforcing South Korea’s position as one of the leading countries in innovative infrastructure development.
Regulatory Complexities Impede the South Korea Construction Market Expansion
Navigating through regulatory complexities presents a formidable challenge in the South Korea construction market. Infrastructure projects often face hurdles due to the intricate network of government regulations and permitting procedures.
Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at local, regional, and national levels. These mandates entail adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various regulatory requirements.
Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly extend project timelines and inflate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for the Market Expansion
The construction industry is experiencing a transformative shift toward digitalization, driven by the widespread adoption of Building Information Modeling (BIM), which is unlocking new pathways for growth. BIM enables advanced digital design, simulation, and infrastructure management, leading to greater accuracy, improved collaboration, and optimized resource use.
In response to this growing trend, ALLPLAN introduced Allplan 2024-1 in April 2024, aimed at strengthening BIM capabilities and enhancing cloud-based workflows marking a clear move toward fully digital project execution. Furthermore, the integration of AI, IoT, and cloud technologies is accelerating real-time collaboration, predictive maintenance, and efficient facility operations.
Competitive Landscape
The key players operating in the South Korea construction industry include Samsung C&T Corporation, Hyundai Engineering & Construction Co. Ltd., Daewoo E&C, Kumho E&C, SK Engineering & Construction Co., Ltd., Lotte Engineering & Construction Co., Ltd., Hanjin Heavy Industries & Construction Co., Ltd., POSCO Eco & Challenge, DL E&C, Doosan Enerbility, Dohwa Engineering Co., LTD., Kolon Global Corporation, SM GROUP, Dongbu Corporation, Ssangyong Engineering & Construction Co., Ltd., and others.
South Korea Construction Market Key Segments
By Type
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Renovation
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New Construction
By Construction Method
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Traditional Construction
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Prefabricated/Modular Construction
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3D-Printed Construction
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Green/Sustainable Construction
By Type of Contractor
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Large Contractor
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Medium Contractor
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Small Contractor
By Sector
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Real Estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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Samsung C&T Corporation
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Hyundai Engineering & Construction Co. Ltd.
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Daewoo E&C
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Kumho E&C
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SK Engineering & Construction Co., Ltd.
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Lotte Engineering & Construction Co., Ltd.
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Hanjin Heavy Industries & Construction Co., Ltd.
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POSCO Eco & Challenge
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DL E&C
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Doosan Enerbility
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Dohwa Engineering Co., LTD.
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Kolon Global Corporation
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SM GROUP
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Dongbu Corporation
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Ssangyong Engineering & Construction Co., Ltd.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 325.91 Billion |
|
Revenue Forecast in 2030 |
USD 389.89 Billion |
|
Growth Rate |
CAGR of 2.6% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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