The "South Korea Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" has been added to ResearchAndMarkets.com's offering.

South Korean construction market is anticipated to expand by 3.5% annually, reaching KRW 119.24 trillion by 2025. The sector has shown considerable growth from 2020-2024 with a 6.5% CAGR, and this positive trend is predicted to continue with a 2.8% CAGR from 2025-2029, eventually reaching KRW 137.84 trillion.

The report spans a market size forecast for over 40 construction segments from 2020-2029, exploring KPIs like value and volume. It analyzes building categories, green initiatives, and economic indicators, providing an essential roadmap to navigate South Korea's vast construction possibilities.

This extensive report offers a detailed data-centric analysis of South Korea's construction sector, providing market insights across the building and infrastructure categories. It includes over 100 KPIs, exploring growth dynamics, cost structure, and city-specific analyses with comprehensive data and visual aids for stakeholders.

The analysis covers diverse market dynamics through KPIs such as value, volume, and unit numbers, segmenting building construction into residential, commercial, industrial, and institutional areas with over 30 divisions. Using industry-leading methodology, this unbiased research relies on a sophisticated analytics platform to uncover emerging business and investment opportunities.

South Korean Residential Construction Industry

Government housing initiatives and sustainable construction practices offer potential, though rising costs, a high inventory of unsold homes, and labor shortages remain challenges. Aligning with government policies, investing in sustainable technologies, and addressing workforce skill gaps are critical strategies for revitalization. Public-private collaborations will be vital to meet housing needs effectively.

Macroeconomic Factors

• Residential construction grapples with high costs and inflation, driven by materials, interest rates, and reduced permits.
• The government aims to stabilize the market with plans for 252,000 new public housing units announced in December 2024.
• Industry challenges include unsold homes totaling 617,904 units and increased bankruptcies among construction firms.

Project Landscape

• The 252,000-unit public housing initiative aims to boost availability, with an emphasis on public-private partnerships to enhance investment and expertise.
• The semiconductor industry support package is expected to stimulate residential construction.

Government Policies & Programs

• Tax rule relaxation and apartment reconstruction regulation easements announced in January 2024 focus on supply and cost management.
• Purchasing unsold dwellings through the Korea Land and Housing Corporation aims to address market stagnation.
• Federal and local initiatives address comprehensive and region-specific housing needs.

Industry-Specific Developments

• Zero-energy building standards will become mandatory for public buildings starting in 2024.
• Eco-friendly practices are on the rise, meeting increasing demand for green buildings.
• There is a skill shortage in green technologies, necessitating investment in training.

South Korean Commercial Construction Industry

Opportunities abound in smart cities, green buildings, and tech-oriented office spaces. Challenges like rising costs, regulatory issues, and evolving work trends must be addressed. Sustainable, tech-driven projects offer competitiveness; meanwhile, policymakers focus on regulatory optimizations, and developers should consider flexible and mixed-use concepts.

Macroeconomic Factors

• Construction cost inflation affects investments and renovations, impacting new project viability.
• There is growing demand for flexible office and mixed-use developments in key urban centers.
• High vacancy rates in outdated offices and lengthy approval processes slow expansion.

Project Landscape

• Seoul's Smart City Initiative leads major projects, blending high-tech business and retail spaces with hospitality.
• Public-private collaborations bolster major developments, with foreign investments expected in prime sectors.

Government Policies & Programs

• Urban regeneration and smart city incentives drive growth, supporting eco-friendly and smart building development.
• Tax benefits encourage energy-efficient commercial real estate investments.
• National and regional policies focus on modernization and business attraction.

Industry-Specific Developments

• AI and IoT are transforming office spaces, with smart management systems becoming the norm.
• Sustainability goals integrate eco-friendly practices and technologies in construction.
• Labor shortages in digital construction require enhanced workforce training.

South Korean Institutional Construction Industry

Opportunities in smart hospitals and digital education facilities clash with funding, regulatory, and workforce issues. Prioritizing fund allocation and streamlined approvals expedite institutional growth. Developers should target smart and sustainable infrastructure demands.

Macroeconomic Factors

• Cost increases challenge public buildings, though healthcare and education see investments.
• Smart hospitals and digital learning environments show promising growth potential.
• Tight budgets and stricter environmental regulations lead to selective project prioritization.

Project Landscape

• Seoul Medical Mega Hub and digitalized university projects aim to enhance public infrastructure.
• Government-funded, but private interest strengthens hospital and university development.

Government Policies & Programs

• Policies boost healthcare and education infrastructure with grants for smart, sustainable practices.
• Federal and local programs align to address specific community needs.

Industry-Specific Developments

• AI and automation are enhancing efficiency in hospital and school construction.
• Green building design integrates eco-friendly technologies to meet sustainability targets.

South Korean Industrial Construction Industry

Growth potential in high-tech manufacturing and logistics faces land, cost, and regulatory obstacles. Smart industrial facilities and tech adoption remain priorities for competitive growth, requiring innovations in workforce training.

Macroeconomic Factors

• Rising costs impact manufacturing and logistics, with AI and automation shaping advancements.
• Industrial land availability and environmental regulation present challenges.

Project Landscape

• Semiconductor and logistics hubs highlight major investments, aiming for tech-driven efficiencies.
• The government supports industrial zone development with strategic incentives.

Government Policies & Programs

• K-Semiconductor Belt and industrial park expansions signify strategic priorities for global competitiveness.
• Tax incentives for green building projects encourage sustainable industrial growth.

Industry-Specific Developments

• AI, IoT, and smart factories redefine industrial construction standards.
• Eco-friendly practices in construction align with global standards for sustainability.

South Korean Infrastructure Construction Industry

Smart cities, transport, and renewable projects hold promise despite obstacles like cost and regulatory delays. Emphasizing smart technology and careful alignment with government goals ensures stakeholder success in long-term infrastructure investments.

Macroeconomic Factors

• Material cost inflation challenges sectors like transport and urban development.
• Government emphasizes renewable energy, smart cities, and transport expansions.

Project Landscape

• Key projects include transportation network enhancements and renewable energy initiatives.
• Public-private partnerships contribute to transportation and energy infrastructure.

Government Policies & Programs

• The Green New Deal directs policies towards sustainable infrastructure and post-pandemic recovery.
• Financial incentives support smart city and renewable energy expansion.

Industry-Specific Developments

• AI and big data guide planning and management in new infrastructure projects.
• Eco-friendly materials and renewable energy forms boost sustainability efforts.

For more information about this report visit https://www.researchandmarkets.com/r/b34p4g

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