South Korea Green Building Market Assessment, By Product Type [Exterior Products, Interior Products, Building Systems, Construction Materials, Others], By Building Type [Residential, Commercial, Industrial, Institutional, Public Infrastructure], By Applic

South Korea green building market is projected to witness a CAGR of 10.54% during the forecast period 2025-2032, growing from USD 11.18 billion in 2024 to USD 24.99 billion in 2032. The South Korean green building sector has recorded robust growth in the recent past due to growing environmental awareness, government initiatives, and worldwide impetus towards sustainability. Being a developed economy and an urbanized nation, South Korea is also grappling with issues of energy use, carbon dioxide emission, and resource management. Therefore, the nation has incorporated stringent green building regulations and certifications, e.g., the Green Standard for Energy and Environmental Design (G-SEED), to encourage energy-efficient and green building practices. The government also puts forth policies and incentives to encourage the use of renewable energy, smart technology, and sustainable construction materials.

The green building industry in South Korea encompasses a diverse range of projects, including commercial, residential, and government buildings. Key concerns across these projects include minimizing waste, conserving water, using sustainable materials, and improving energy efficiency. Increasing emphasis is also being placed on biophilic design, which integrates natural elements into urban environments to promote health and foster harmony with nature.

For instance, in March 2024, the SUKSAN Café located in Mokpo-si, South Korea, was designed by MTT Architects in 2023. The café hopes to establish a symbiotic relationship between the built and nature, including sea, island, wind, forest, and mankind. Through the combination of green and modern design, the café itself reflects superiority in green development, demonstrating its potential to coexist with nature in harmony while sustaining it as well as beautifying it through human interaction while encouraging stewardship of the environment.

Accelerating South Korea’s Green Building Market Through Innovation and Policy Support

South Korea's green building market is gaining momentum through policy inducement and innovation in concert. Energy efficient and sustainable building practice is being driven by the government to respond to climate change and achieve carbon neutrality. The drivers are the adoption of high-tech green building technologies in the form of intelligent energy management systems and integration of renewable energy, resulting in increased energy efficiency and reduction of carbon footprint. Along with this, tax credits and subsidies are also being offered as financial incentives to encourage private sector participation in the construction of green buildings.

For instance, in January 2025 South Korea has been applying tighter green remodeling and zero-energy building standards to the public sector with a perspective towards enhanced energy efficiency and the promotion of green behavior. Public buildings have to achieve higher levels of zero-energy certification, and current buildings will be compulsorily mandated to be renovated in a green fashion. Private buildings over 1,000 square meters will also be required to meet more stringent energy-saving design requirements. The Ministry of Land, Infrastructure, and Transport released the '3rd Basic Plan for Green Buildings (2025-2029)' to be climate-resilient and carbon-neutral. The plan gives top priority to expanding green refurbishment, promoting zero-energy buildings, and advancing green building technology through public-private partnership.

Technological Advancements in Construction Drive the South Korea Green Building Market Growth

Construction technology is one of the principal drivers of the development of South Korea's green building industry. Technology innovation in the construction process, construction materials, and information and communication technologies are assisting the construction industry in adapting to rising demands for energy-efficient, green, and sustainable buildings. Technology assists in increasing construction efficiency and addressing worldwide sustainability demands through lower carbon emissions, waste minimization, and the optimal use of resources. The application of new technologies such as Building Information Modeling (BIM), Internet of Things (IoT), and automation has transformed traditional construction practices, enabling accuracy, acceleration of projects, and improved building performance.

For instance, in December 2023, the invention of modular construction techniques by KICT researchers is a technique in which 70-80% of structural elements are fabricated within a controlled factory environment and then transported to the project site for assembly. With this method, construction time is significantly reduced, safety is enhanced, and site risk factors are eliminated, hence extremely convenient in disaster relief or emergencies. Saving material waste and energy consumption, the process also contributes to the green building initiative. The KICT's pioneering modular building technology is a shining example of the way technology is assisting in developing the green building industry in South Korea.

Residential Buildings are Expected to Hold the Largest Market Share

Residential structures will lead to the largest market share in the green building segment due to surging urbanization, rising population, and growing demand for low-cost housing. With the cities growing and housing demand increasing, governments and private developers are turning towards residential developments to meet the lack of housing and provide sustainable living conditions. Governments around the world are introducing policies to increase housing supply, lower prices, and encourage developers and buyers.

For instance, in August 2024, the government of South Korea announced plans to construct more than 400,000 houses in six years to address increasing housing costs and family debt. The plan consists of accelerating 217,000 Seoul and surrounding area homes, relaxing regulations, and reusing ""green belt"" areas. Finance Minister Choi Sang-mok emphasized finding a balance between housing supply and liquidity management. The plan also increases public rental housing and extends tax benefits to builders and first-time homebuyers, to stabilize the market and make it affordable long-term despite runaway real estate prices. This case shows the focus on residential buildings as a prime driver of market expansion which will drive the green building concept in the residential sector.

Northeast Region is Expected to be the Fastest Growing in the South Korea Green Building Market

The Northeast region is South Korea's focal area of its green building market and is expected to be the fastest-growing region in the coming years, driven by the expansion of urbanization, government policies, and increasing green development interest. The area where big cities like Seoul and Incheon are situated has seen steady demand for green buildings in the form of green housing projects that are energy efficient, LEED-certified business projects, and smart infrastructure. The steps taken by the government to reduce carbon emissions and promote eco-friendly technologies have provided further fuel to the trend, and the Northeastern United States has become a center for sustainable architectural innovation.

For instance, in November 2024, the Korea University, Seoul National University, Yonsei University, and POSTECH launched a Sustainable Campus Initiative at the Global Green Growth Institute (GGGI) headquarters in Seoul. The universities have committed to green campuses that are environmentally friendly, carbon neutral, and paperless, improving leadership in sustainability in South Korea's higher education sector. The historic partnership guarantees their shared interests in promoting environmental stewardship and green growth in their institutions and society.

Future Market Scenario (2025-2032F)

• The green building industry in South Korea will experience a robust growth boost due to government and policy advocacy of sustainability. The carbon-free 2050 government goal and aggressive building energy efficiency standards will propel the swift uptake of green building practices, technology, and certification such as LEED and South Korea's G-SEED.
• The adoption of new technologies like IoT, AI, and energy management systems will be the driving force to transform green buildings.
• The real estate market is witnessing a shift towards a trend of green building, focusing on energy-saving design, using renewable energy sources, and using green materials, especially in cosmopolitan cities like Seoul and Busan.
• While the market itself is promising, over-capitalization in the beginning and a lack of properly skilled labor might limit growth. But some issues bear within them the seeds of training programs, innovation, and public-private partnerships to propel the market ahead, with long-term viability and economic yield.

Key Players Landscape and Outlook

South Korea's green building industry is expanding immensely, fueled by government mandates, innovative technology, and environmental concerns. The major players are international and local companies dealing in sustainable development, energy-efficient technologies, and intelligent building technology. Kyung Hyang Industry, and Hanwha Solutions Corporation are among the front runners in the adoption of green building practices, and multinational companies such as Siemens, Schneider Electric, and BASF have introduced innovative solutions. The government of South Korea's pledge to become carbon neutral by 2050 even further expands the adoption of green building practices and standards and certifications such as LEED and G-SEED.

For instance, in November 2024, the MOU between Siemens Korea and AtkinsRéalis Korea has the potential to further drive green building activities in Korea by bringing together advanced digital technologies and energy-saving solutions. Siemens' advanced capabilities in smart building systems, IoT, and energy management can maximize building efficiency, minimize energy consumption, and increase sustainability. AtkinsRéalis' expertise in green design and engineering can further guarantee environmentally friendly construction practices. Together, they can deliver green solutions for energy-efficient HVAC systems, sourcing renewable power and smart building control in accordance with Korea's green building standards and carbon-reduction objectives. Show more