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Construction in South Korea – Key Trends and Opportunities to 2021

Construction in South Korea – Key Trends and Opportunities to 2021

Synopsis

Growth in South Korea’s construction industry continued to accelerate in 2016, with output growth in real terms of 10.5%, measured at a constant 2010 US dollar exchange rate. This follows annual growth of 3.0% in 2013, 0.8% in 2014 and 5.7% in 2015. Growth during the review period (2012–2016) has been supported by a recovery in economic conditions and government investment in major transport infrastructure, residential buildings and energy and utilities projects. According to the Ministry of Strategy and Finance, the government invested KRW124.0 trillion (US$108.6 billion) on 167 transport infrastructure projects during 2013–2015.

Over the forecast period (2017–2021), the industry is expected to continue to grow, driven by investments in public infrastructure, energy, commercial and industrial projects, and improvements in consumer and investor confidence. Moreover, a rise in building permits for the construction of residential and non-residential buildings in the country is expected to support the industry’s growth over the forecast period.

The government’s focus on developing transport infrastructure, as well as efforts to boost energy production, particularly renewables, is expected to drive funding towards the construction industry over the forecast period. In June 2017, the government announced plans to invest KRW42.0 trillion (US$36.6 billion) on the renewable energy infrastructure, with an aim to eliminate coal power plants by 2020.

The industry’s output value in real terms increased at a compound annual growth rate (CAGR) of 4.93% during the review period, and is expected to post a CAGR of 3.99% over the forecast period.

Summary

Timetric’s Construction in South Korea – Key Trends and Opportunities to 2021 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, and the risks and opportunities they present to participants in the South Korean construction industry
  • Profiles of the leading operators in the South Korean construction industry
Scope

This report provides a comprehensive analysis of the construction industry in South Korea. It provides:
  • Historical (2012–2016) and forecast (2017–2021) valuations of the construction industry in South Korea using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • 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)
  • 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 strategy using Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • Timetric expects the residential construction market to remain the largest segment, accounting for 39.4% of the industry’s total value in 2021. Growth over the forecast period is expected to be supported by rising residential buildings permits in the country. In 2016 the total number of building permits issued in the country grew by 3.8%, increasing from 265,445 dwelling units to 275,572.
  • The government is focusing on the expansion of railway lines across the country, with an aim to increase trade activities in the country, as well as provide a convenient transport system to the population. Accordingly, the government plans to invest KRW88.0 trillion (US$79.4 billion) to increase the railway network by 39.0%, going from 3,549.6km in 2016 to 4,934km by 2025.
  • The energy and utility construction market is expected to be supported by the government’s plan to provide high speed internet connection to all citizens. To support economic development and growth, the government plans to provide a 5G connection to 90.0% of the population by 2025.
  • In July 2017, the government announced plans to increase natural gas’ share in electricity production from 19.0% in 2016 to 27.0% by 2030. Consequently, it plans to build a new exploration well and other related infrastructure under the public-private partnership (PPP) model by 2030. Additionally, the government aims to generate 7.0% of the country’s total energy needs through renewable sources by 2020.
  • The government increased the industrial building permits by 4.8%, going from 21,229 units in 2015 to 22,258 in 2016. Moreover, it increased by 3.9% during the first half of 2017, rising from 11,108 units in January–June 2016 to 11,538 units in January–June 2017. This is expected to drive the growth of industrial construction market over the forecast period.


  • Executive Summary
  • Industry Outlook
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities Construction
    • Institutional Construction
    • Residential Construction
  • Key Issues and Developments
  • Market Data Analysis
    • Construction Output and Value Add
      • Construction output by project type
        • Table South Korean Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Construction Output by Project Type (KRW Billion), 2016-2021
      • Construction output by cost type
        • Table South Korean Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Construction Output by Cost Type (KRW Billion), 2016-2021
      • Construction output by activity type
        • Table South Korean Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Construction Output by Activity Type (KRW Billion), 2016-2021
      • Construction value add by project type
        • Table South Korean Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Commercial Construction
      • Commercial construction output by project type
        • Table South Korean Commercial Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Commercial Construction Output by Project Type (KRW Billion),2016-2021
      • Commercial construction output by cost type
        • Table South Korean Commercial Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Commercial Construction Output by Cost Type (KRW Billion), 2016-2021
      • Commercial construction output by activity type
        • Table South Korean Commercial Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Commercial Construction Output by Activity Type (KRW Billion), 2016-2021
      • Commercial construction value add by project type
        • Table South Korean Commercial Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Commercial Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Industrial Construction
      • Industrial construction output by project type
        • Table South Korean Industrial Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Industrial Construction Output by Project Type (KRW Billion), 2016-2021
      • Industrial construction output by cost type
        • Table South Korean Industrial Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Industrial Construction Output by Cost Type (KRW Billion), 2016-2021
      • Industrial construction output by activity type
        • Table South Korean Industrial Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Industrial Construction Output by Activity Type (KRW Billion), 2016-2021
      • Industrial construction value add by project type
        • Table South Korean Industrial Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Industrial Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table South Korean Infrastructure Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Infrastructure Construction Output by Project Type (KRW Billion), 2016-2021
      • Infrastructure construction output by cost type
        • Table South Korean Infrastructure Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Infrastructure Construction Output by Cost Type (KRW Billion), 2016-2021
      • Infrastructure construction output by activity type
        • Table South Korean Infrastructure Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Infrastructure Construction Output by Activity Type (KRW Billion), 2016-2021
      • Infrastructure construction value add by project type
        • Table South Korean Infrastructure Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Infrastructure Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table South Korean Energy and Utilities Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Energy and Utilities Construction Output by Project Type (KRW Billion), 2016-2021
      • Energy and utilities construction output by cost type
        • Table South Korean Energy and Utilities Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Energy and Utilities Construction Output by Cost Type (KRW Billion), 2016-2021
      • Energy and utilities construction output by activity type
        • Table South Korean Energy and Utilities Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Energy and Utilities Construction Output by Activity Type (KRW Billion), 2016-2021
      • Energy and utilities construction value add by project type
        • Table South Korean Energy and Utilities Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Energy and Utilities Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Institutional Construction
      • Institutional construction output by project type
        • Table South Korean Institutional Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Institutional Construction Output by Project Type (KRW Billion), 2016-2021
      • Institutional construction output by cost type
        • Table South Korean Institutional Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Institutional Construction Output by Cost Type (KRW Billion), 2016- 2021
      • Institutional construction output by activity type
        • Table South Korean Institutional Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Institutional Construction Output by Activity Type (KRW Billion), 2016-2021
      • Institutional construction value add by project type
        • Table South Korean Institutional Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Institutional Construction Value Add by Project Type (KRW Billion), 2016-2021
    • Residential Construction
      • Residential construction output by project type
        • Table South Korean Residential Construction Output by Project Type (KRW Billion), 2012-2016
        • Table South Korean Residential Construction Output by Project Type (KRW Billion), 2016-2021
      • Residential construction output by cost type
        • Table South Korean Residential Construction Output by Cost Type (KRW Billion), 2012-2016
        • Table South Korean Residential Construction Output by Cost Type (KRW Billion), 2016-2021
      • Residential construction output by activity type
        • Table South Korean Residential Construction Output by Activity Type (KRW Billion), 2012-2016
        • Table South Korean Residential Construction Output by Activity Type (KRW Billion), 2016-2021
      • Residential construction value add by project type
        • Table South Korean Residential Construction Value Add by Project Type (KRW Billion), 2012-2016
        • Table South Korean Residential Construction Value Add by Project Type (KRW Billion), 2016-2021
  • Company Profile: Samsung C&T Corporation
    • Samsung C&T Corporation - Company Overview
      • Table Samsung C&T Corporation, Key Facts
    • Samsung C&T Corporation - Business Description
    • Samsung C&T Corporation - Main Products and Services
      • Table Samsung C&T Corporation, Main Products and Services
    • Samsung C&T Corporation - History
      • Table Samsung C&T Corporation, History
    • Samsung C&T Corporation - Company Information
      • Samsung C&T Corporation - key competitors
      • Samsung C&T Corporation - key employees
        • Table Samsung C&T Corporation, Key Employees
  • Company Profile: Hyundai Engineering & Construction Co. Ltd
    • Hyundai Engineering & Construction Co. Ltd - Company Overview
      • Table Hyundai Engineering & Construction Co. Ltd, Key Facts
    • Hyundai Engineering & Construction Co. Ltd - Business Description
    • Hyundai Engineering & Construction Co. Ltd - Main Services
      • Table Hyundai Engineering & Construction Co. Ltd, Main Services
    • Hyundai Engineering & Construction Co. Ltd - History
      • Table Hyundai Engineering & Construction Co. Ltd, History
    • Hyundai Engineering & Construction Co. Ltd - Company Information
      • Hyundai Engineering & Construction Co. Ltd - key competitors
      • Hyundai Engineering & Construction Co. Ltd - key employees
        • Table Hyundai Engineering & Construction Co. Ltd., Key Employees
  • Company Profile: POSCO Engineering & Construction Ltd
    • POSCO Engineering & Construction Ltd - Company Overview
      • Table POSCO Engineering & Construction Ltd, Key Facts
    • POSCO Engineering & Construction Ltd - Business Description
    • POSCO Engineering & Construction Ltd - Main Services
      • Table POSCO Engineering & Construction Ltd, Main Services
    • POSCO Engineering & Construction Ltd - History
      • Table POSCO Engineering & Construction Ltd, History
    • POSCO Engineering & Construction Ltd - Company Information
      • POSCO Engineering & Construction Ltd - key competitors
      • POSCO Engineering & Construction Ltd - key employees
        • Table POSCO Engineering & Construction Ltd, Key Employees
  • Company Profile: Daewoo Engineering & Construction Co. Ltd
    • Daewoo Engineering & Construction Co. Ltd - Company Overview
      • Table Daewoo Engineering & Construction Co. Ltd, Key Facts
    • Daewoo Engineering & Construction Co. Ltd - Business Description
    • Daewoo Engineering & Construction Co. Ltd - Main Services
      • Table Daewoo Engineering & Construction Co. Ltd, Main Services
    • Daewoo Engineering & Construction Co. Ltd - History
      • Table Daewoo Engineering & Construction Co. Ltd, History
    • Daewoo Engineering & Construction Co. Ltd - Company Information
      • Daewoo Engineering & Construction Co. Ltd - key competitors
      • Daewoo Engineering & Construction Co. Ltd - key employees
        • Table Daewoo Engineering & Construction Co. Ltd, Key Employees
  • Company Profile: GS Engineering & Construction Corporation
    • GS Engineering & Construction Corporation - Company Overview
      • Table Skanska AB, Key Facts
    • GS Engineering & Construction Corporation - Business Description
    • GS Engineering & Construction Corporation - Main Services
      • Table Skanska AB, Main Services
    • GS Engineering & Construction Corporation - History
      • Table Skanska AB, History
    • GS Engineering & Construction Corporation - Company Information
      • GS Engineering & Construction Corporation - key competitors
      • GS Engineering & Construction Corporation - key employees
        • Table Skanska AB, Key Employees
  • Appendix
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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