Construction Contract Amount in Q4 Last Year 66.7 Trillion Won... 18.4% Decrease Compared to Same Period Last Year

Due to the real estate market downturn, the construction contract amount in the fourth quarter of last year decreased by 18% compared to the previous year.

On the 27th, the Ministry of Land, Infrastructure and Transport announced that the construction contract amount in the fourth quarter of last year recorded 66.7 trillion KRW, down 18.4% from the same period last year. This amount is based on the aggregated and analyzed construction contract amounts reported to the Construction Industry Comprehensive Information Network (KISCON).

By sector, public contracts decreased by 3.2% year-on-year to 17.1 trillion KRW, while private contracts decreased by 22.5% to 49.6 trillion KRW during the same period. By type, civil engineering increased by 6.8% to 17.9 trillion KRW, whereas building construction decreased by 24.8% to 48.8 trillion KRW. The total annual construction contract amount last year was 296.8 trillion KRW, which is a 2.7% increase compared to the previous year.

In the fourth quarter of last year, public construction contracts ordered by the national government, local governments, and public institutions amounted to 17.1 trillion KRW, down 3.2% from the same period last year, and the annual total was 61.5 trillion KRW, down 0.9% year-on-year.

During the same period, the private sector recorded 49.6 trillion KRW, a 22.5% decrease, while the annual total increased by 3.7% year-on-year to 235.3 trillion KRW.

In the fourth quarter of last year, civil engineering (including industrial facilities and landscaping) contracts amounted to 17.9 trillion KRW, up 6.8% year-on-year, and the annual total was 73.4 trillion KRW, a 17.1% increase compared to the previous year.

During this period, building construction, including residential and commercial projects, decreased by 24.8% to 48.8 trillion KRW, and the annual total decreased by 1.3% to 223.3 trillion KRW compared to the previous year.

In the fourth quarter of last year, contract amounts by company ranking showed that the top 1-50 companies recorded 24.3 trillion KRW, down 26.0% year-on-year; companies ranked 51-100 decreased by 23% to 3.6 trillion KRW; companies ranked 101-300 dropped 29.7% to 6.1 trillion KRW. Companies ranked 301-1,000 decreased by 17.5% to 5.8 trillion KRW, and other companies decreased by 4.9% to 26.8 trillion KRW.

By site location, construction contract amounts in the metropolitan area were 30.5 trillion KRW, down 19.6% year-on-year, while non-metropolitan areas recorded 36.2 trillion KRW, a 17.3% decrease.

By headquarters location, the metropolitan area recorded 36.6 trillion KRW, down 28.9% year-on-year, whereas non-metropolitan areas recorded 30 trillion KRW, a 0.1% increase.

For the entire last year, construction contract amounts by site location showed the metropolitan area at 140.8 trillion KRW, up 2.7% year-on-year, and non-metropolitan areas at 155.9 trillion KRW, up 2.8%.

By headquarters location, the metropolitan area recorded 177.7 trillion KRW, down 0.9% year-on-year, while non-metropolitan areas increased by 8.9% to 118.7 trillion KRW.

This content was produced with the assistance of AI translation services.