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South Korea Infrastructure Report Q2 2016

South Korea Infrastructure Report Q2 2016

BMI View: We have downgraded our growth forecast for South Korea's construction sector on the back ofnew mortgage rules from early 2016, which will dampen the residential construction market from 2016onwards. With a struggling non-residential building sector, it is the infrastructure sector, and notably theenergy and utilities sub-sector, which will boost South Korea's overall construction industry growth intoweak but positive territory.

Latest Updates And Structural Trends

We expect a slight expansion in South Korea's construction sector of 1.41% in real terms for 2016, downfrom 1.98% over 2015. For 2017, we maintain our growth forecast of 1.32%. Overall constructionindustry growth in South Korea will remain in positive territory over our forecast period to 2025, despitebeing in the low 1-1.5% real growth bracket.

With negative growth rates in the non-residential building sector and weak long-term growth in theresidential building sector, overall building industry real growth will remain in negative territory over ourforecast period 2016-2025.

We downgraded residential building real growth rates this quarter on the back of new amortised loanrules and tougher lending rules to take effect in 2016. In addition, the lack of significant income increase,an ageing population and an increasing oversupply of new homes provide a weak long-term picture forthe residential building sector.


BMI Industry View
Latest Updates And Structural Trends
Table: Infrastructure - Construction Industry Forecasts (South Korea 2015-2021)
Table: Infrastructure Risk Reward Index (South Korea)
SWOT
Infrastructure SWOT
Industry Forecast
Construction And Infrastructure Forecast Scenario
Table: Construction And Infrastructure Industry Data (South Korea 2015-2025)
Transport Infrastructure - Outlook And Overview
Latest Updates
Table: Transport Infrastructure Industry Data (South Korea 2015-2025)
Structural Trends
Roads
Railway
Airports
Ports
Table: Key Projects: Transport
Energy And Utilities Infrastructure - Outlook And Overview
Latest Updates
Table: Energy And Utilities Infrastructure Data (South Korea 2015-2025)
Thermal Sources Maintain Dominance
Renewables Outlook Clouded By Cheaper Alternatives
Transmission
Table: Key Projects: Energy & Utilities
Residential/Non-Residential Building - Outlook And Overview
Latest Updates
Table: Residential and Non-Residential Building Industry Data (South Korea 2015-2025)
Table: Key Projects: Construction And Social Infrastructure
Industry Risk Reward Ratings
South Korea - Infrastructure Risk/Reward Index
Rewards
Risks
APAC Infrastructure RRI: Affirming A Benign 2016 Outlook
Table: Asia Risk/Reward Index
Market Overview
Competitive Landscape
Table: EQS Data
Company Profile
Hyundai Engineering and Construction
Doosan Heavy Industries & Construction
GS Engineering & Construction
Samsung C&T
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Infrastructure Risk/Reward Index Indicators
Table: Weighting Of Indicators

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