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Construction in South Korea - Key Trends and Opportunities to 2022

Construction in South Korea - Key Trends and Opportunities to 2022

Summary

The South Korean construction industry registered growth of 10.1% and 7.1% in real terms in 2016 and 2017 respectively, following average annual growth of 3.1% during 2013-2015. This increase can be attributed to improvements in business confidence and consumer demand, as well as public and private sector investment in commercial, residential and infrastructure construction projects, leading to an increase in demand for the South Korean construction industry. Additionally, construction related to the 2018 Winter Olympic Games supported the industry’s overall growth during 2016-2017.

The industry is expected to expand over the forecast period (2018-2022), albeit at a much slower pace. The industry’s expansion is expected to be supported by the government’s efforts to enhance commercial, energy and utilities infrastructure. In addition, the government’s aim to improve the transport network is expected to support investments in infrastructure projects, which will in turn fuel growth in the industry.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 1.98% over the forecast period, compared to 5.84% during the review period (2013-2017).

GlobalData’s Construction in South Korea - Key Trends and Opportunities to 2022, 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 construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the South Korean construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Key Highlights
  • GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 43.0% of the industry’s total value in 2022. Market growth over the forecast period is expected to be supported by government efforts to construct affordable houses for the country’s low- and middle-income populations. The government plans to develop 1.0 million affordable housing units by 2022.
  • GlobalData expects the infrastructure construction market output to record a forecast-period CAGR of 2.01% in nominal terms, supported by public and private sector investments in the development and modernization of the country’s transport infrastructure. In March 2018, the Ministry of Land, Infrastructure and Transportation announced a plan to increase the share of the rail network to the total freight transport from 5% in 2017 to 10% in 2021. Consequently, regular investments are expected in the maintenance and expansion of transport infrastructure.
  • In December 2017, the South Korean Ministry of Trade, Industry and Energy (MOTIE) unveiled the 8th Basic Plan for Long-term Electricity Supply and Demand 2017-2031 (8th BPE). Under this, MOTIE estimated that the country’s electricity demand will grow by 1.3% annually, going from 85.2GW in 2017 to 100.5GW in 2030. Consequently, public and private sector investments in power infrastructure development to meet the government’s targets will drive the energy and utilities construction market’s growth over the forecast period.
  • The Ministry of Land, Infrastructure and Transport launched a national road construction plan in 2017, under which it plans to construct 13 national expressways across the country, stretching 288.7km, and expand ten existing expressways by 165.7km by 2020.
  • The total construction project pipeline in South Korea - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at KRW303.7 trillion (US$268.7 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed to late-stage projects, with 63.6% of the pipeline value being in projects in the pre-execution and execution stages as of September 2018.
Scope

This report provides a comprehensive analysis of the construction industry in South Korea. It provides -
  • Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in South Korea, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants.
Reasons to buy
  • Identify and evaluate market opportunities using GlobalData'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 strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


1. EXECUTIVE SUMMARY
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE
3. LATEST NEWS AND INDICATORS
4. KEY DRIVERS AND RISKS
4.1. Economic Performance
4.2. Political Environment
4.3. Demographics
4.4. Risk Profile
5. CONSTRUCTION OUTLOOK
5.1. All Construction
5.1.1. Outlook
5.1.2. Project analytics
5.2. Commercial Construction
5.2.1. Outlook
5.2.2. Project analytics
5.3. Industrial Construction
5.3.1. Outlook
5.3.2. Project analytics
5.4. Infrastructure Construction
5.4.1. Outlook
5.4.2. Project analytics
5.5. Energy and Utilities Construction
5.5.1. Outlook
5.5.2. Project analytics
5.6. Institutional Construction
5.6.1. Outlook
5.6.2. Project analytics
5.7. Residential Construction
5.7.1. Outlook
5.7.2. Project analytics
6. KEY INDUSTRY PARTICIPANTS
6.1. Contractors
6.2. Consultants
7. APPENDIX
7.1. What is this Report About?
7.2. Definitions
8. ABOUT GLOBALDATA
8.1. GlobalData at a Glance
8.2. GlobalData Construction
8.3. Disclaimer
8.4. Contact Us
List of Tables
Table 1: Construction Outlook
Table 2: South Korea, Key Economic Indicators
Table 3: South Korea, Construction Output Value (nominal, KRW Billion)
Table 4: South Korea, Construction Output Value (nominal, US$ Million)
Table 5: South Korea, Top Commercial Construction Projects by Value
Table 6: South Korea, Top Industrial Construction Projects by Value
Table 7: South Korea, Top Infrastructure Construction Projects by Value
Table 8: South Korea, Top Energy and Utilities Construction Projects by Value
Table 9: South Korea, Top Institutional Construction Projects by Value
Table 10: South Korea, Top Residential and Mixed-Use Construction Projects by Value
Table 11: South Korea, Key Contractors
Table 12: South Korea, Key Consultants
Table 13: GlobalData Construction Market Definitions
Table 14: Construction Risk Index Ratings and Scores
List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: South Korea, Construction Projects Pipeline by Sector (KRW Billion)
Figure 3: South Korea, Construction Permits (Total Numbers)
Figure 4: South Korea, Risk Comparison, Q2 2018
Figure 5: South Korea, Risk Comparison Review
Figure 6: South Korea, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 7: South Korea, Construction Output Value, Growth Matrix
Figure 8: South Korea, Construction Output Value, by Sector (KRW Billion), 2013-2022
Figure 9: South Korea, Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion), 2017-2022
Figure 10: South Korea, Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 11:South Korea, Commercial Construction Output by Project Type (KRW Billion), 2013-2022
Figure 12: South Korea, Commercial Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 13: South Korea, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 14: South Korea, Industrial Construction Output by Project Type (KRW Billion), 2013-2022
Figure 15: South Korea, Industrial Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 16: South Korea, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 17: South Korea, Infrastructure Construction Output by Project Type (KRW Billion), 2013-2022
Figure 18: South Korea, Infrastructure Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 19: South Korea, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 20: South Korea, Energy and Utilities Construction Output by Project Type (KRW Billion), 2013-2022
Figure 21: South Korea, Energy and Utilities Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 22: South Korea, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 23: South Korea, Institutional Construction Output by Project Type (KRW Billion), 2013-2022
Figure 24: South Korea, Institutional Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 25: South Korea, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 26: South Korea, Residential Construction Output by Project Type (KRW Billion), 2013-2022
Figure 27: South Korea, Residential Construction Projects Pipeline, Value by Stage (KRW Billion)
Figure 28: South Korea, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (KRW Billion)
Figure 29: South Korea, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 30: South Korea, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 31: South Korea, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 32: South Korea, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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