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South Korea's construction industry has experienced significant changes in recent years, with the domestic supply price index of intermediate construction supply material reaching nearly *** points in 2023. This sharp increase of almost ** points since 2020 reflects broader trends in the sector, including rising costs and shifting market dynamics.

Rising costs and material prices

The surge in the supply price index coincides with increases in other construction-related metrics. The construction cost index in Korea has seen a near-continuous rise over the past two years, reaching over *** points in 2024. This trend is further exemplified by the uninterrupted rising cost of raw materials for cement, lime, and plaster manufacturing since 2019. Similarly, the cost of raw materials for concrete and plaster products has been steadily increasing, amounting to over **** trillion South Korean won in 2022.

Industry leaders and market trends

Despite rising costs, South Korea's construction sector remains robust, with major players like Samsung C&T leading the industry. In 2024, Samsung C&T was ranked as the top South Korean construction company by estimated construction capability, with a building capacity of approximately ** trillion South Korean won. This figure was nearly double that of its closest competitor, Hyundai E&C. However, the number of construction permits issued in South Korea has been declining since 2018, indicating a potential slowdown in new construction projects.