Construction in South Korea Key Trends and Opportunities to 2018



This report provides detailed market analysis, information and insights into the South Korean construction industry including:

The South Korean construction industry’s growth prospects by market, project type and type of construction activity

Analysis of equipment, material and service costs across each project type within South Korea

Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the South Korean construction industry

Profiles of the leading operators in South Korean construction industry

Data highlights of the largest construction projects in South Korea


The value of the South Korean construction industry increased at a compound annual growth rate (CAGR) of 2.43% during the review period (20092013). Growth was supported by private and public investments in infrastructure, industrial and commercial construction projects. Much of the countrys industrial and economic success can be credited to the countrys commitment to infrastructure development. According to the World Economic Forums Global Competitiveness Report 20132014, South Koreas infrastructure ranked 23rd in a list of 148 global economies. The industry is expected to be supported by the governments focus on infrastructure and residential construction over the forecast period (20142018), which will improve investor sentiment alongside the countrys hosting of the 2018 Winter Olympic Games and an anticipated recovery of the global economy. The industry is anticipated to post a forecast-period CAGR of 3.96%.

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This report provides a comprehensive analysis of the construction industry in South Korea. It provides:

Historical (2009-2013) and forecast (2014-2018) valuations of the construction industry in South Korea using construction output and value-add methods

Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type

Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

Analysis of key construction industry issues, including regulation, cost management, funding and pricing

Detailed profiles of the leading construction companies in South Korea

Reasons To Buy

Identify and evaluate market opportunities using Timetric’s standardized valuation and forecasting methodologies

Assess market growth potential at a micro-level with over 600 time-series data forecasts

Understand the latest industry and market trends

Formulate and validate business strategies using Timetric’s critical and actionable insight

Assess business risks, including cost, regulatory and competitive pressures

Evaluate competitive risk and success factors

Key Highlights

The countrys energy infrastructure construction is expected to be supported by the governments plans to develop nuclear energy, increasing its usage to half of the total energy consumption by 2022. South Korea has plans to increase the use of nuclear energy from 29.2% of total energy consumption in 2012 to 43.4% by 2022, and 59.0% by 2030. Accordingly, the total nuclear power installed capacity is expected to increase by 59.0%, going from 20.7GWe in 2012 to 32.9GWe by 2022. In accordance with this plan, 18 new nuclear power plants are proposed to be constructed by 2030, with an anticipated investment of KRW4050 trillion (US$3240 billion). With such an increase in the capacity of nuclear energy, substantial investments in the power sector are expected to drive growth of the energy infrastructure over the forecast period.

Significant investments are being made in the countrys infrastructure in order to improve its quality, effectiveness and coverage, as well as maintaining its transport network. In 2013, the South Korean government announced its plan to invest KRW124.0 trillion (US$108.6 billion) on various road, rail and other transportation infrastructure development projects across the country.

The commercial construction market will be supported by a number of hotel and resort development projects. 20th Century Fox, one of the six major American film studios, is planning to construct a KRW3.8 trillion (US$3.5 billion) new 75-acre theme park in Changwon City, which is expected to be completed in 2018. Moreover, the French hotel group Accor SA is in the process of constructing a 300-room hotel in Seoul, which is expected to be completed in 2016.

South Koreas housing market showed signs of recovery towards the beginning of 2014. According to the KOSIS, the housing purchase price index grew by 1.4% in the first quarter of 2014, when compared to the first quarter of 2013. The largest increase in house prices was recorded in Daegu, where prices grew by 15.6% in the first quarter of 2014 compared to the previous year, while house prices in Gwangju, Chungbuk, Ulsan and Incheon rose by 7.1%, 5.9%, 5.6% and 5.0% respectively during the same period.

South Korea is investing in the expansion of its healthcare infrastructure, in order to meet the rising concerns of its growing population. According to the KOSIS, the proportion of the population aged 65 years and above increased from 7.2% in 2000 to 11.8% in 2012, and is expected to reach 15.7% in 2020 and 24.3% by 2030. Moreover, the populations median age increased from 31.8 in 2000 to 39.1 in 2012, and is projected to reach 43.4 by 2020 and 48.5 by 2030. A larger elderly population will put pressure on existing resources and facilities, as well as creating conditions for an increase in investments in new and refurbished healthcare buildings.


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