Q1 Construction Contracts Down 4.8% Year-on-Year... Civil Engineering Hit Hard by Sluggish Industrial Facilities

Construction Contract Value in Q1 Reaches 60.1 Trillion Won, Down 4.8% Year-on-Year
Public Sector Up 12.0%, Private Sector Down 13.4% Amid "Investment Freeze"
Civil Engineering Contracts Drop 11.0% Due to Sluggish Industrial Facilities
Large Construction Firms See 8.4% Decline in Orders, Some Mid-Sized Firms Perform Well

In the first quarter of this year, the total value of construction contracts nationwide decreased by 4.8% compared to the same period last year. Due to the economic slowdown and a decline in private investment, the overall contract volume shrank by more than 3 trillion won, with the downward trend particularly pronounced among large construction companies.

Construction Contract Amount Statistics for Q1 2025. Ministry of Land, Infrastructure and Transport.

According to the "Construction Contract Amount Statistics for Q1 2025" released by the Ministry of Land, Infrastructure and Transport on June 25, the total contract amount for the first quarter was recorded at 60.1 trillion won. This represents a 4.8% decrease from the same period last year (63.1 trillion won). The public sector, bolstered by public housing projects and other initiatives, reached 23.9 trillion won, marking a 12.0% increase. In contrast, the private sector fell to 36.1 trillion won, a 13.4% decrease, due to sluggish residential and factory construction.

By type of construction, the impact of sluggish industrial facility projects was significant. The value of civil engineering contracts, including industrial facilities and landscaping, was 21.3 trillion won, down 11.0% from the same period last year. Building construction amounted to 38.7 trillion won, representing only a slight decrease of 0.9%.

By company size, larger firms experienced a greater impact. Construction companies ranked 1st to 50th in construction capability evaluation recorded 26.9 trillion won, an 8.4% decrease from the previous year. Companies ranked 101st to 300th saw a 4.4% decrease, and those ranked 301st to 1000th experienced a 15.8% decrease. In contrast, companies ranked 51st to 100th posted a 16.8% increase, highlighting the solid performance of some mid-sized firms.

By region, based on project site location, the Seoul metropolitan area recorded 28.3 trillion won (down 5.2%), while non-metropolitan areas posted 31.8 trillion won (down 4.3%), both showing a downward trend. However, when based on company headquarters location, construction companies headquartered in the Seoul metropolitan area recorded 31.2 trillion won, a 12.3% decrease, while those headquartered in non-metropolitan areas posted 28.8 trillion won, a 5.0% increase, resulting in a mixed outcome.

The industry continues to view the contraction of the private sector as the key factor hindering the recovery of the overall construction market. In particular, as the downturn in industrial facilities and private residential construction persists, the prevailing outlook is that a rebound will be difficult unless there is an expansion of public-sector social overhead capital (SOC) projects in the second half of the year.

The Ministry of Land, Infrastructure and Transport stated, "The construction contract amount is based on prime contracts worth 100 million won or more signed by general and specialized construction companies, and differs from the order statistics compiled by Statistics Korea in terms of scope and methodology." The ministry added, "Detailed data will be available on the Ministry of Land, Infrastructure and Transport's Statistics Portal starting June 26."

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