The South Korea construction market is expected to grow at a CAGR of 2.60% from 2025 to 2034, fueled by government investments and smart city projects. Key drivers include the adoption of BIM, expansion in smart cities like Songdo, and rising residential sector investments. Renowned players such as Samsung C&T, Hyundai Motor Group, and GS E&C are pivotal in this market transformation. For deeper insights, access the South Korea Construction Market Report 2025-2034.
Dublin, Sept. 02, 2025 (GLOBE NEWSWIRE) — The “South Korea Construction Market Report and Forecast 2025-2034” report has been added to ResearchAndMarkets.com’s offering.
The South Korea construction market size is estimated to expand at a CAGR of 2.60% in the forecast period of 2025-2034. The construction market in South Korea is driven by increasing government investments in infrastructure development and growing smart city projects.
Construction refers to the act of building bridges, roads, residential units, and infrastructure, among others; the construction sector includes public and private infrastructure and civil engineering services. With a surge in population, the need for households is increasing, supporting the market expansion. The market is driven by supportive government initiatives, urbanisation, infrastructural development, and technological advancements, among others.
The Korean government is adopting policies with the aim to apply BIM (Building Information Modelling) to the entire construction sector, including civil engineering and architecture services by 2025, providing lucrative growth opportunities to the market. The increasing efforts towards the construction of smart cities in South Korea have been supporting the South Korea construction market growth. One such initiative includes the construction of a smart city named Songdo from scratch on 1,500 acres of land.
The expansion of the residential sector due to rising investments in real estate and increasing urbanisation is supporting the market expansion. The rising construction of apartment complexes can also be attributed to the increasing land scarcity. The rising efforts of various key market players in the country to collaborate with international entities is providing lucrative growth opportunities to the market. For instance, in June 2023, Hyundai E&C signed a contract with Aramco, Saudi Arabia’s state oil company, to build a petrochemical plant in Saudi Arabia.
The country is heavily investing in research and development activities and technologies to enhance construction operations and formulate better methodologies. Lotte Engineering & Construction applied for a patent on technology that reinforces earth-retaining safety by using AI to observe cracks in buildings and roads.
