Seoul, South Korea – The South Korean construction industry has experienced a significant downturn in the third quarter of 2023, with construction contracts decreasing by nearly 40 percent. This decline is primarily attributed to the current slowdown in the housing market.
According to Yonhap News Agency, Infrastructure and Transport, civilian and public work contracts in South Korea were valued at 45.5 trillion won (approximately US$34.92 billion) during the July-September period. This represents a 38.8 percent decrease compared to the same period in the previous year. The data indicated that this quarter marked the fourth consecutive quarterly fall in construction contract values. The sharp decline was driven by a 46.1 percent drop in private deals, totaling 34.4 trillion won, which overshadowed a 5.2 percent increase in public sector contracts, amounting to 11.1 trillion won. Regionally, contracts for construction in Seoul and its adjacent capital region plunged 43.1 percent to 20.4 trillion won, while those in the rest of the country fell 34.8 percent to 25.1 trillion won.