H. Yoo
Research expert covering South Korea
Construction in South Korea - statistics & facts
The construction sector is a major industry in South Korea, contributing around 90 trillion South Korean won to the country's GDP. Domestically, the construction market is considered mature, reflecting slower productivity over time. In the coming years, the number of new construction orders domestically is expected to stay low, given the impact of high interest rates and the real estate market. However, greater investments into construction have led to an expansion in the housing supply as well as some more large-scale social overhead capital projects.
Workers in the construction industry
Currently, there is an imbalance of supply and demand of workers in the South Korean construction industry. Attracting new workers to satisfy demand hinges on improving the low worker satisfaction levels and general working conditions. Further, over half of all employees working in construction are over the age of 50, giving concern to not just productivity levels but also the risk of casualties. The rates of accidents and deaths from heavy industries like construction remain high, although greater investment into research and new technologies is expected to improve this.Overseas prospects for growth
The slowing of the domestic market has led construction companies to seek growth elsewhere, with overseas construction orders increasing over the years. The total value of overseas orders stood at around 31 billion U.S. dollars in 2022 with almost half coming from other Asian countries, followed by Middle Eastern countries. One such example is the Burj Khalifa skyscraper in Dubai, UAE, currently the tallest structure in the world, built by Samsung C&T. Apart from residential structures, these companies have started working on other development projects overseas, such as the building of roads and power plants, in collaboration with local governments. Indeed, a significant portion of overseas construction orders were for industrial facilities, such as plants. The future will likely see the continuation of similar construction projects pursued by South Korean companies as they seek to secure growth overseas.
